Audits are a critical and an important part of every company whether performed internally or externally. With the expansion of Kudler Fine Foods and update of their information system, the company must ensure system processes are functioning properly. Conducting an audit will identify any problems with the newly implemented computer system. There are several types of audits that can be performed for each process. The most important factor is choosing the appropriate type of audit that best fits the process. Most audits are conducted similarly and should always be completed in an efficient and effective manner. Furthermore, there are events that could prevent the reliance of ...view middle of the document...
It is important for the company to address any findings and recommendations communicated in final audit reports. Conducting follow-up audits to evaluate any corrective actions are also imperative to ensure reported issues have been considered and acted upon in a timely manner.
The point of the audit is to expand the understanding of company functions and evaluation of Kudler Fine Foods’ business. Because of the new accounting information systems upgrade, an audit of the accounts payable, accounts receivable, inventory, payroll transactions, and processes. The audit may be internal or external. A recommended special audit requested by Kudler Fine Foods because of the AIS be warranted to ensure proper internal controls are in place.
The recommended IT audit type based on the new AIS implementation is the Find and Recommendation audit and SAS 70 audit. A findings and recommendations report includes most reviews that are considered consulting or advisory services. “Examples of engagements that fall under this category include systems implementations, including enterprise resource planning (ERP) implementations; security reviews; database application reviews; IT infrastructure and improvements needed engagement; project management; and IT internal audit services” (Hunton, Bryant, & Bagranoff, 2004, pg. 217).
Because Kudler Fine Foods implementation of an electronic payroll system, “the SAS 70 audit employs IT auditors when the technology to be audited is complex enough to require specialized expertise. For example, an audit of an application service provider would require obtaining an understanding of how the system works, how data flow through the system, and where the control points are” (Hunton, Bryant, & Bagranoff, 2004, pg. 218).
Performing the Audit
It is vital that management understands how the auditor will conduct the audit to attain a quality audit. According to Hunton, Bryant, and Bagranoff, information technology audits go through a process called the ‘IT audit life cycle’ (pg. 208). The process consists of seven phases: planning, risk assessment, audit program, gather evidence, form conclusions, deliver audit opinion, and follow up. In the first step, the auditor will gain an understanding of Kudler Fine Foods operations and Kudler’s management will establish the control objectives and scope of the audit through the use of a risk assessment. Next the auditor will prepare the audit program that will function as a “template of the work to be performed” (Hunton, Bryant, & Bagranoff, 2004, pg. 210). Afterwards, the auditor is ready to accumulate the information or evidence from the company that he or she will review. Once the information is analyzed, the auditor will form conclusions about...