Audit Program Design Essay examples

1461 Words Aug 18th, 2015 6 Pages
Audit Program Design ACC/546 Chandria Willis

August 3, 2015

Frank G. Elliot Apollo Shoes, Inc. Langley, ME
Dr Mr. Elliot,
We have developed test o controls of substantive test of transactions, and analytical procedures for the audit of Apollo Shoes Inc.’s sales and collection cycle, payroll and personnel
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These will aid in strengthening the internal control system currently in place which provides the necessary information to assess the control risks. After determining the controls and deficiencies the tests and procedures will be carried out.

Other deficiencies include insufficient separation of duties, authorizations, inadequate records and documents, and duplicate documents. Once the information on volume of testing controls is gathered, we will then proceed to design tests of controls. There will be one control designed for each of the key controls to verify its effectiveness. One of Apollo Shoes Inc.’s internal controls for sales will require a credit approval. Testing the internal control means examining each of the sales transactions to ensure proper credit approvals. An additional test involves the examination every sales invoice to support the bill of ladings.

The substantive tests design for sales transactions are often based upon the findings of the tests of controls. Objectives for this component of the audit includes existing recorded sales, recorded sales without shipments, double recorded sales, and shipments that were made to customers. We will in addition ensure that sales transactions are recorded accurately recorded in accounts.

An audit of the payroll and personnel cycle is to assess whether the account balances that are affected by the cycle have been stated fairly in accordance with generally

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