Assessing Internal Controls: A Bullseye Audit

1026 Words3 Pages
bulb-icon

Recommended: Theoretical framework for internal control

Bullseye Audit
Alvin Smith
ACCT 400
December 28, 2014
Dr. Stanley Helm

Bullseye Audit To management of Bullseye, my name is Alvin Smith and it gives me great pleasure to be performing this year’s audit of your company. With help of four additional colleagues and an IT professional to assist me in performing this year’s audit I feel confident that it will be a smooth efficient audit. I have taken the time to review last year’s audit and made note of the minor problems dealing with human error and also noted that correction have been made. Because of this problem I would like to start my review here to test the controls for eliminating human errors. The IT specialist will be reviewing the internal controls of your electronic systems and …show more content…

An audit of Bullseye internal control over financial report as of FY 2014 was also conducted based on criteria established by the internal control and integrated framework of the committee sponsoring organization. Bullseye management is overall responsible for these financial statements and maintains effective internal control over the financial reporting, along with its effectiveness of internal control.
Responsibility of express opinion of these financial controls and statements within its internal control of such reports. This firm conducted the audit in accordance with PCAOB standards of the United States, which require the plan and performance of an audit for reasonable assurance that those financial statements are both free of material misstatement and that effective controls are in place and maintained to eliminate those misstatements. Our audit of financial statements included examination and testing of internal controls, inventory, payroll, deposits and withdrawals, along with receipts and payments. These evaluation gave the audit team an understanding of the internal procedures and controls when dealing with financial controls and statements, gave the audit team a reasonable basis for our

Show More
Related

  • Target Corporation Case Study Financial Management

    657 Words  | 2 Pages

    The company has a responsibility to establish and implement internal and external controls for proper accounting reporting. Target Corporation has done a good job of developing these controls and thus the accounting has been reliable and accurate. To assist in a audit of the company, it must establish substantive procedures that can follow up on the EPS accounting policy. A testing to confirm events and their occurrence would be helpful to ensure that the events and transactions have actually occurred and are recorded in the financial statements accordingly.

    Read More

  • Understanding Conservatism Constraint in GAAP

    717 Words  | 2 Pages

    According to PCAOB Auditing Standard 5 paragraph 2, “effective internal control over financial reporting provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes. If one or more material weaknesses exist, the company 's internal control over financial reporting cannot be considered

    Read More

  • Nt1310 Unit 1

    529 Words  | 2 Pages

    “Fifth, the company should audit the whole process frequently to ensure compli- ance with these procedures.”

    Read More

  • Case Analysis Of Hollate Manufacturing

    721 Words  | 2 Pages

    The oversight responsibilities of the board, the CAE lacking of expertise or broad understanding of financial controls and responsibilities, and the understaffed internal audit functions lacking of independence and direct access to the board of directors contributed to the absence of internal controls. To begin with, the board should be retrained to achieve financial literacy to review financial reporting. Other than attending formal meetings, the board of directors should be more involved with the management. For the Audit Committee, the two members who were recruited as acquaintances to Brennahan need be replaced with experts who are more sufficiently knowledgeable about accounting rules beyond merely “financially literate”. Furthermore, the internal audit functions need to expand with different expertise commensurate with the expanded activities of the organization, testing financial reporting rather than internal controls from an operational perspective. The CAE should be more independent and proactive to execute audit plans, instead of following orders from the CFO, and initiate a direct and efficient communication between internal audit and audit

    Read More

  • Strategic Audit of Harley Davidson

    1883 Words  | 4 Pages

    The series of activities that are enacted by a firm that add value to a product beyond the cost of the production are referred to as the value chain. Harley Davidson offers a combination of superior performance and unique attributes within its value chain that promotes their core competencies and provides them with a competitive advantage.

    Read More

  • Exxon Mobil Corporation Audit Memo

    1564 Words  | 4 Pages

    The report on internal controls, according to ExxonMobil’s CEO, Treasurer and Controller, states they are solely “responsible for establishing and maintaining adequate internal control over (ExxonMobil’s) financial reporting.” They evaluated the effectiveness of internal controls over financial reporting based on COSO’s framework and concluded that controls were effective (MD&A, F-22). The report in internal controls acknowledged us—ExxonMobil’s independent public accounting firm PricewaterhouseCoopers LLP (PwC)—stating that the Corporation maintained effective internal control over financial reporting for 2009 and 2010 as it is the responsibility of management to maintain and assess its effectiveness. We, PwC, are responsible only to express an opinion on internal controls, which we opined in 2009 as unqualified (MD&A, F-22).

    Read More

  • Internal Audit Case Study

    1665 Words  | 4 Pages

    According to the article authored by Mark Rupert, what are the seven best practices in the roles and responsibilities of an internal audit function?

    Read More

  • Pcob Fraud Case

    1663 Words  | 4 Pages

    The inspection by the PCAOB revealed many deficiencies with KPMG LLP. First, the Firm assumed that the controls over revenue and inventory were the same at all of the client’s locations, but they ended up being different (5). The Firm did not use enough professional skepticism in its decision to test less locations, since they thought all of the locations would be the same. This deficiency related to the audit of internal control. If the controls were different then items were reported differently, which goes against the principle of consistency.

    Read More

  • Pros And Cons Of IT Auditing

    1287 Words  | 3 Pages

    The creation of a team to perform the effective auditing of an Information Technology (IT) organization is a daunting task. Some of the key elements that should be considered while creating an IT audit team are highlighted in this critical thinking report, such as what should be the primary focus of the team, what are the key positions, the skill-sets needed for each member of the team, outside assistance or co-sourcing should be considered or not, and determining the value of the audit pertaining to the entire organization. Moreover, the expected outcome of this report is to provide all crucial aspects of successfully creating an IT audit team, so that the team is fully efficient to figure out each and every pros and cons of the internal controls of an IT department.

    Read More

  • The Audit Of Accounts Payable Case Study

    1133 Words  | 3 Pages

    Since it is the PA firm’s responsibility to conduct audits, it is a public accountant’s objective to adhere to CAS 200 whereby their objectives are to provide reasonable assurance that the financial statements are not misstated, consider the possibility of fraud or error and communicate finding in accordance with the Canadian Auditing Standards. Public Accountants are only required to provide a reasonable level of assurance when auditing financial statements. The users of the financial statements may vary. They may be shareholders, creditors or management, but the only responsibility the shareholder has, is to provide reasonable assurance that the financial statements present fairly and in accordance to a certain criteria such as GAAP.

    Read More

  • Explain How You Would Conduct The Audit Process

    803 Words  | 2 Pages

    In order to utilize these procedures the audit must cross-reference the accounting system within each service industry by evaluating the data and how does it entered. By completing the basic audit of the financial statements it is possible to see if the account balances are correctly recorded. In this case the audit must review completeness, presentation and disclosure, existence or occurrence, valuations or allocation, right and obligations.

    Read More

  • The Traditional Audit Without Technology

    1360 Words  | 3 Pages

    The major characters of the tradition audit are all information what is needed by auditors are on the paper and the manual calculators and without high communication technology. Auditors usually were limited by the place in the paper time. When a several people are working on the same auditing project for a client with offices in cities across the country, even worldwide, it takes a lots all time those auditors get the information which they need from the client, even there is risk paper information disappear for many reasons. on the another hand, mail paper information increase the auditing cost. The mistake caused by the manual calculators inevitably, no matter how fixed auditors concentrate on recalculate is, after all auditors are human. The global business become major in the modern business world, some example, several auditors who are in different locations are working a same auditing project, or auditors are in different city even country with the client, when there is issue among these auditors or between auditors and client, they only can communicate with each other by phone or be together and have meeting. Phone call can not make sure information been watched in the same time when the voice is talking about the issue, but having a meeting takes time and money make all people together, it increases auditing cost.

    Read More

  • Accounting Regulatory Bodies Paper

    721 Words  | 2 Pages

    The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.

    Read More

  • The History of Auditing

    3399 Words  | 7 Pages

    Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.

    Read More

  • Advantages Of Continuous Auditing

    1179 Words  | 3 Pages

    Information technology has advanced to the point where continuous auditing is vital to the continuation of the auditing profession. Auditing had moved away from the more manual operations to becoming increasingly more computer based. Continuous auditing is necessary in providing stakeholders real time assurance. Without these assurances, management or stakeholders may make inappropriate decisions concerning resource allocation (Chan & Vasarhelyi, 2011).

    Read More

More about Assessing Internal Controls: A Bullseye Audit

Open Document