Operational Auditing--Spring 2006 3-1 Internal Audit Process  Auditee selection  Audit planning  Preliminary survey  Internal control review  Expanded.

Slides:



Advertisements
Similar presentations
Internal Audit Documentation and Working Papers
Advertisements

Internal Controls Becoming Compliant. Design & Implementation of Internal Controls. Design: Need to show that a framework is in place to establish internal.
MIS 325 PSCJ. 2  Business processes can be quite complex  Process model: any abstract representation of a process  Process-modeling tools provide a.
Learning Objectives LO5 Document an accounting system to identify key controls and weaknesses in order to assess control risk. LO6 Write key control tests.
A clerk in the sales department receives customer orders by mail and prepares four copies of a sales order.
Purchasing Card Record Keeping & Retention 1. Who is Responsible for What? Cardholder – Person responsible for making only authorized charges on the card,
Operational Auditing--Fall 2000 Control Self Assessment (CSA) 4 Methodology 4 Review and Identification –Key business objectives –Related risks –Mitigating.
Operational Auditing--Fall Operational Auditing Fall 2010 Professor Bill O’Brien.
Operational Auditing--Fall Evidence = Support 4 Auditors collect information 4 Evidence should be sufficient, competent, relevant & useful 4 Methodology.
Operational Auditing--Spring Accounting Business Skills “The What” 4 Business perspective 4 Organizational focus 4 Bias for action 4 Communication.
Operational Auditing--Fall Work Paper Purposes 4 Documentation of evidence 4 Audit execution and planning tool 4 Follow-up reference 4 Review facilitator.
Operational Auditing--Fall Establishing an I/A Function 4 Reporting structure 4 Mission statement 4 Objectives 4 Methodology & Operations.
Operational Auditing--Fall Evidence = Support n Auditors collect information n Evidence should be sufficient, competent, relevant & useful n Methodology.
Operational Auditing--Fall Operational Auditing Fall 2009 Professor Bill O’Brien.
Operational Auditing--Spring Operational Auditing Spring 2010 Professor Bill O’Brien.
Operational Auditing--Spring Internal Audit Process 4 Auditee selection 4 Audit planning 4 Preliminary survey 4 Internal control review 4 Expanded.
Computers: Tools for an Information Age
Operational Auditing--Spring Evidence = Support  Auditors collect information  Evidence should be sufficient, competent, relevant & useful  Methodology.
Operational Auditing--Fall 2003 Control Self Assessment (CSA) 4 Methodology 4 Review and Identification –Key business objectives –Related risks –Mitigating.
Operational Auditing--Fall Establishing an I/A Function n Reporting structure n Mission statement/ role of dept. n Objectives n Department tone--teamwork.
Sales & Cash Receipts Transactions By David N. Ricchiute
The Information Systems Audit Process
Internal Audit reporting to CHU Evelin Pungas Head of Internal Control Coordination Unit Financial Control Department
Learning Objectives LO1 Outline six general audit techniques for gathering evidence. LO2 Identify the procedures and sources of information auditors can.
External Quality Assessments
Your High-Level Overview of the Components Provided by ESP Solutions Group Disaster Prevention and Recovery.
Chapter 11: Follow-up Reviews and Audit Evaluation ACCT620 Internal Auditing Otto Chang Professor of Accounting.
IA Clinic. การเตรียมการตรวจสอบ แผนการ ตรวจสอบ แผนการ ปฏิบัติงาน ตรวจสอบ หารือ หน่วยรับตรวจ รายงานผล การตรวจสอบ ติดตามผล การตรวจสอบ ผลการประเมินความเสี่ยง.
Conducting the IT Audit
Purchasing Card Record Keeping & Retention REVISED
REVIEW AND QUALITY CONTROL
Preliminary Survey Lectured by Dr. Siriluck Sutthachai Accounting Department Faculty of Management Science Khon Kaen University Khon Kaen, Thailand.
Challenges Faced in Developing Audit Plans and Programs 21 st March, 2013.
Do it pro bono. Strategic Scorecard Service Grant The Strategy Management Practice is presented by Wells Fargo. The design of the Strategic Scorecard Service.
Chapter 7 Preparation for the Audit ACCT620 Internal Auditing Otto Chang Professor of Accounting.
INFORMATION ASSURANCE USING C OBI T MEYCOR C OBI T CSA & MEYCOR C OBI T AG TOOLS.
A Day in the Life of an Auditor at the Division of State Internal Audit The State Employee Fraud, Waste, and Abuse Hotline.
Study Circle 4 October 2009 SA Documentation.
© OECD A joint initiative of the OECD and the European Union, principally financed by the EU. Quality Assurance José Viegas Ribeiro IGF, Portugal SIGMA.
1 1 Internal Audit Annual Planning, Engagement Planning and Execution.
“We will lead the nation in improving student achievement.” CLASS Keys TM Module 5 Pre-Evaluation Conference Spring 2010 Teacher and Leader Quality Education.
Copyright © 2007 Pearson Education Canada 1 Chapter 13: Audit of the Sales and Collection Cycle: Tests of Controls.
©2012 Pearson Education, Auditing 14/e, Arens/Elder/Beasley Completing the Tests in the Sales and Collection Cycle: Accounts Receivable Chapter 16.
Auditing: The Art and Science of Assurance Engagements
Copyright © 2007 Pearson Education Canada 1 Chapter 14: Completing the Tests in the Sales and Collection Cycle: Accounts Receivable.
RAWG.  Risk assessment guideline for strategic and annual planning ◦ Identifying auditing universe ◦ Identification of risks ◦ Categorization of possible.
Do it pro bono. Naming & Visual Identity Service Grant.
 Objectives  To determine the importance and functions of working papers in IAing in Malta  To analyse the manner of recording throughout the internal.
AUDITING SALES AND CASH RECEIPTS
Internal Auditing ISO 9001:2015
Completing the Tests in the Sales and Collection Cycle:
Click to edit Master text styles – Second level Third level – Fourth level » Fifth level 1 1. Create Invoice 2. Synchronize 3. Send & Track 4. Payment.
©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Completing the Tests in the Sales and Collection Cycle: Accounts Receivable.
12/06/20161 ObjectiveProcess Risk Inherent Risk – risk of not achieving objectives Inherent risk Inherent risk – before the assessment of any controls.
Key to an Effective Red Book Shop JUAN R PEREZ, CHIEF OF AUDITS COUNTY OF SAN DIEGO MARCH 9, 2016.
Chapter 7 Compliance Testing.
Problem 9-3, Page 473 Key Control, Control Test Evaluation
A clerk in the sales department prepares two copies of an invoice, detailing the quantity and price information and forwards them to the accounts receivable.
Auditing & Investigations I
Internal Audit planning of an audit: EC practices
A clerk in the sales department prepares two copies of an invoice, detailing the quantity and price information and forwards them to the accounts receivable.
CHAPTER 15 AUDITING EDP SYSTEMS.
Survey-Document Examination-Observation-Benchmarking
INTERNAL AUDIT COMMUNICATIONS AND REPORTING ( %)
A clerk in the sales department prepares two copies of an invoice, detailing the quantity and price information and forwards them to the accounts receivable.
TECHNOLOGY ASSESSMENT
Jean-Pierre Garitte Skopje 8 April 2019
9-3 Applying for Employment
FIELDWORK Expectations, challenges, methods, results
Systems Documentation
Presentation transcript:

Operational Auditing--Spring Internal Audit Process  Auditee selection  Audit planning  Preliminary survey  Internal control review  Expanded testing  Develop findings & recommendations  Reporting  Follow-up  Post audit evaluation

Operational Auditing--Spring Control Self Assessment (CSA)  Methodology  Review and Identification –Key business objectives –Related risks –Mitigating controls

Operational Auditing--Spring CSA-History  Introduced by Gulf Canada in 1987  Gulf used facilitated meetings

Operational Auditing--Spring Facilitated Meetings  Management and staff participate through interviews and polling  Objectives  Risks  Processes  Soft and/or informal controls

Operational Auditing--Spring General Methodology  Shared process  Assessment of internal controls  Evaluation of risks  Development of action plans  Assess the likelihood of achieving objectives  SJSU simulation

Operational Auditing--Spring General Approaches  Facilitated meetings--group workshops  Questionnaires--yes/no answers  Management analysis--self studies

Operational Auditing--Spring Uses  Self analysis for risk*  Selection of audit areas*  Internal control review*  Special projects  Soft control analysis * alternatives to the traditional approach to the I/A process

Operational Auditing--Spring Benefits  Increases I/A scope  Target review of high risk areas  Increases the effectiveness of corrective action  Builds team-oriented relationships

Operational Auditing--Spring What Is Storyboard Flowcharting?  New method for documenting a process.  Clean and simple flowcharting method.  Allows for clients and auditors to clearly understand process under review.  Simple technique that requires a good graphics package and a little imagination.  Can use Microsoft PowerPoint, Harvard Graphics, Corel Draw, etc.  Does not replace IS flowcharting.

Operational Auditing--Spring The Basics of Storyboard  Meet with client and document process.  Use your imagination to choose/draw picture.  Under picture write narrative for each step represented.  Be creative - good control narrative in green; poor controls in red.  Completed storyboard must be reviewed with client.  Make any changes necessary.  Final copy should be in color for most effective presentation.  Different process may require different approach.

Operational Auditing--Spring How to Storyboard Meet with client and document process. From client interview create storyboard. A A Print out story board - black and white draft and color for final. Review storyboard with client and obtain sign off.

Operational Auditing--Spring Start Customer Service Rep Receives Order Scan Form Into System Shipping Files Yellow Customer Service Rep Researches And Corrects Information Shipping Pulls And Packs Orders End By Phone? By Mail or Fax? On Standard Order Form? Shipping Sends Order and Green Copy (Invoice) Customer Service Rep. Key Enters Data on-Line Approved By Manager? Send to Special Order Department Print Three-Part Shipper Yellow and Green To Shipping Department Pink to Accounts Receivable Department YES NO YES Company XYZ Order-fulfillment process NO

Operational Auditing--Spring A A Customer Representative Receives orders by fax or mail. Receives orders by phone. Standard orders are scanned into system. Customer Representative enters order data on-line. A three-part packing slip is printed per order. Pink copy sent to accounts receivable department. Company XYZ Order-fulfillment process Packing slip approved by Manager. If not approved, returned to Customer Representative for correction Packing slip Yellow and green copy go to shipping department. Shipping pulls and packs orders. Yellow copy filed in shipping department. Green copy sent with order.

Operational Auditing--Spring Flowcharting Begin or End File Decide Document Activity

Operational Auditing--Spring Work Paper Purposes  Documentation of evidence  Audit execution and planning tool  Follow-up reference  Review facilitator

Operational Auditing--Spring Other W/P Factors  Ownership: the company  Preparation guidelines –Completeness & accuracy –Clarity & understandability –Legibility & neatness –Relevance –Attention to detail

Operational Auditing--Spring Sample Work Paper Heading Ref. Review T/M Legend: Source Purpose: Conclusions