Audit Proposal

Audit Proposal

The purpose of this briefing is to provide Kudler Fine Foods with a clear description regarding the types of audits, both financial and IT, which can be conducted to detect risk, internal control efficiency, and material misstatement of financial reporting. In addition, recommendations of IT audits that will best serve Kudler are suggested. The processes involved during these recommended audits will also be outlined during this analysis, as well as clear identification of potential barriers that may arise.

Types of Audits

Kudler Fine Foods is susceptible to various risks and potential for financial misstatement. It is important to ensure that the organization’s processes are efficient and secure, as well as that the equipment being used is performing properly. To ensure the protection and secure storage of data, IT audits should be assessed. There are four main types of IT audits: attestation, findings and recommendations, SAS74, and SAS90. Attestation refers to auditing the assurance of Kudler’s functions and responsibilities. Findings and recommendations is a bit less formal from an auditing standpoint, as it focuses on providing Kudler with a review of the current findings within the organization’s processes ad provides suggestive action through consulting and advisory services provided by the audit team. SAS74 refers to the type of audit in which internal controls are outlined and tested for efficiency. SAS90 is the final major IT audit in which Kudler’s technological limitations and capabilities are reviewed and tested.

From a financial reporting standpoint, Kudler also faces potential for risk and material misstatement. Financial reporting audits test for the accuracy, relevance, completeness, and presentation of financial information as it is reported through the client’s software package, in addition to the internal controls that are in place to ensure such conditions are met.

Recommendations of and Processes to Conduct IT Audits...