Audit Proposal

Audit Proposal

Kudler Find Foods’ management requests a proposed audit schedule for accounting systems currently used. Each type of audit requires knowledge of appropriate audits to use per process. Subsequently, events with the ability to prevent reliance need to be identified, so that audits can be conducted.

Audit Types

There are four types of audits: attestation, findings and recommendations, SAS 70 audit, and SAS 94 audit. Attestation audits provide assurance on something for which the client is responsible (Hunton, Bryant, & Bagranoff, 2004). In an attest engagement, the client specifically agrees to the procedures applied. The Statement on Standards for Attestation Engagements No. 10, Attestation Standards: Revision and Recodification states that the criteria auditors perform must be suitable and available to users of the attestation report (Hunton, Bryant, & Bagranoff, 2004).

Findings and recommendations reports include the most reviews considered to be “consulting” or “advisory” services and can be confused with an attestation (Hunton, Bryant, & Bagranoff, 2004). This report does not include an opinion; however, it is a summary of work performed in connection with the engagement.

The SAS 70 audit is applicable to service organizations wishing to assure clients of the existence and effectiveness of its internal controls (Hunton, Bryant, & Bagranoff, 2004). The SAS 70 report is an effective tool for management to use when considering how the organization affects its internal controls environment as well as identifying any additional controls that should be in place or to compensate for its lack of controls (Hunton, Bryant, & Bagranoff, 2004). This audit is opinion-based and includes two main types of reports: a Type I report which describes a company’s internal controls, but does not perform detailed testing and a Type II report that goes a step further with the service organization’s controls are reviewed and tested over a minimum of six...