Audit Proposal

Audit Proposal

Kudler Fine Foods uses payroll, accounts payable, accounts receivable, and inventory processes. After careful review a couple of weeks ago, Accounting Firm C came to the conclusion that there could be some improvements with the use of these accounting information systems. The firm has carefully reviewed each process and advised Kudler Fine Foods that is in their best interest to develop a program that will incorporate the current accounting program with more advanced version. Their payroll accounts payable, and accounts receivable needs were being met by their current software. However, their inventory management needs were far superior to their current software's capabilities.

Accounting Firm C is now here to show Kudler Fine Foods the proposed audit schedules for the systems we have analyzed. There will be a recommendation given for the audit most appropriate for each of the processes and then explain how those audits will be conducted. We will also discuss a few events that may prevent reliance on the auditing through the computers within the stores.

Types of Audits Used For Each Process

For Kudler Fine Foods (KFF), there are different types of audit tests that could be used for each process of the business: payroll, accounts payable, accounts receivable, and inventory. Kathy could conduct many of these audit tests, but it would also be beneficial for Kathy to have an auditor perform different audit tests as well. Kathy already has a calculation control in place for payroll, which is the automated biometric timekeeping system. Other tests that would be beneficial for the business would be to: match payroll register to supporting documents, restrict access to records, and initiate error tracking reports. For accounts payable, different testing that could be initiated could be for Kathy to run vendor payment reports in order to check against the general ledger figures, while verifying that information against other...