Other areas that will need to be assessed will be how information is process, and how the financial statements are prepared and reported. There are three broad objectives in designing an effective internal control system: The auditor could also inquire of employees within the company to see what their thoughts are on fraud within the company.
As the auditor for Apollo Shoes I must enter the engagement with a questioning mind and evaluate all audit evidence necessary if events point to a possible material misstatement that could involve fraud.
As the auditor, I will be required to perform analytical procedures. If deficiencies are found in an internal control system, the result is material misstatements in financial statements. This will set up a framework for employees to fall back on when questions and temptations arise.
Internal controls are essential for any organization. These analytical procedures help aid in the detection of fraud. It helps restore public confidence and trust in the financial statements provided by companies. Effective internal controls will put more trust and responsibility in the control and less in the employees.
The audit team assigned to Apollo Shoes will brainstorm and come up with areas that could have the potential for fraud and come up with a plan to address those areas.
All companies have information housed within that needs to be safeguarded and protected. The procedures manuals will also need to be evaluated to ensure that time and money is not wasted in unnecessary processes and procedures.
This can lead to a multitude of organizational problems such as fraud and theft. SAS 99 requires Apollo audit program design auditor to ask management about the possibility of fraud within the company. These shields help prevent theft, fraud and waste.
Internal controls relating to operations of a company and how well the company is complying with laws and regulations can also affect financial statements materiality. In assessing the risk for fraud it is our responsibility to exercise professional skepticism.
Sarbanes-Oxley SOX helps in this area by providing internal control shields. Apollo Shoes places a high level of trust with their employees.Anderson, Olds, and Watershed (AOW), CPAs has been engaged to design an audit program for Apollo Shoe, Inc.
AOW, as the auditor on record of. Audit Program Design Part II ACC/ May 2, Audit Program Design Part II The audit of Apollo Shoes, Inc. requires a design of steps to develop audit objectives to plan the audit. The financial statements are divided into cycles to better manage the audit and disperse to staff within the firm.
Audit Program Design Part II Kendrick Cross, Teresita Gunn, Geri Franco, Heather Swayze ACC/ July 08, Joseph Oloyede Sales and Collection Cycle When engaged in auditing a public firm, such as Apollo Shoe Inc., an auditor must determine when to trust in the company’s internal controls and when to ascertain auxiliary testing methods are obligatory to analyze control risks.
View Notes - Audit Program Design Part I from ACC at University of Phoenix. APOLLO SHOES CASEBOOK 1 Apollo Shoes Casebook: Audit Program Design Part I %(2).
Audit Program Design Part III for Apollo Shoes Crystal Spencer ACC/ September 24, Deborah Fitzgerald Thomas Sloan and Spencer Auditing Firm during.
Free Essay: Audit Program Design Part II ACC/ May 2, Audit Program Design Part II The audit of Apollo Shoes, Inc. requires a design of steps to.Download