Acct 542 Audit Proposal
1223 words 5 pagesAudit Proposal
Kudler Fine Foods has many different types of audit to consider that could be used for each functional areas of AP, AR, inventory management and payroll. This brief has the purpose to distinguish among the types of audits that could be used for each process; to recommend the audit most appropriate for each process; to explain how the audits will be conducted; and to identify events that could prevent reliance on auditing through the computer.
Types of Audit
Due to increasing economic and financial growth, many types of audit have been incorporated throughout the development process of internal activities. Audits can be performed manually or they can incorporate technology. According to Hunton and …show more content…
Testing the data. The first event that has to happen is gathering data that can be tested and see how the data is processed .In more complex systems the data have to be put through an integrated test facility in order to audit the operational settings. Data sometimes will go through a parallel simulation which is time consuming but will audit the processes to see if they are functioning according to company policies.
Validate Computer Programs. The Next event deals with using audit techniques to validate new computer programs that upgrade or enhance the software by installing the internal controls to protect against unauthorized changes and it will also help develop better company software. This event also compare the new or enhanced program with the old software to see what processes or improved or useless.
Review of System Software. The third event actually reviews the systems software controls of the operating system and its utility programs that perform the housekeeping. It also reviews the program library controls, monitors storage programs, and accesses control software. The event is do in order make sure all the controls are in place and functioning and to ensure all controls we approved the documentation or by using the software tools.
Validate User Accounts and Access Privileges. The fourth event that is validating user accounts and access privileges that will ensure who has