Kudler Fine Foods Preliminary Report
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Preliminary Audit Plan
Kudler Fine Foods
(1) Objectives
The objective of the preliminary phase is to gain a basic understanding of Kudler Fine Foods. Including, accounts available for its use, the types and volumes of transactions processed, and the systems and processes used in its operations.
The preliminary phase will allow the Internal Auditor to develop a clear understanding of the events and practices which may have a significant impact on the operation of Kudler Fine Foods.
The preliminary phase ultimately allows the internal Auditor to obtain a broad overview of the internal controls in place at Kudler Fine Foods. The preliminary phase also allows the Internal Auditor to identify any areas of the auditees operations which may require special attention or consideration.
– Payroll
– Payroll time logs are managed electronically by a biometric
system and are reviewed by the same employee who manages the
bank reconciliations.
– “Separation of duties” an internal control problem that should be
addressed to prevent fraud.
(2) Procedures
During the preliminary phase the Internal Auditor will:
Review correspondence files, prior work papers (if applicable), and budgetary information;
Identify significant changes in account balances over time or large variances from expectation or budget and perform an analytical review to determine the significance of these variances;
Review organizational charts and job descriptions