Kudler Fine Foods (KFF) is an upscale specialty food store specialized in bakery, pastries, meat, seafood, packaged foods, cheeses, and dairy products in the San Diego metropolitan area. KFF wants to see the proposed audit schedules for the systems, such as accounts payable, accounts receivable, payroll, and inventory management. This paper is about the types of audits, the most appropriate audit for each process, conducting the audits, and the events that may prevent reliance on auditing through the computer.
Types of Audits
There are four types of audits: attestation, findings and recommendations, SAS 70 audit, and SAS 94 audit (Hunton, Bryant & Bagranoff, 2004). KFF may apply different types of audits on different systems and processes.
In an attest engagement, KFF will have to specify what audit procedures to apply. For example, KFF is responsible for maintaining its data systems; the auditors will perform an examination, review, or agreed-upon procedure on the data systems. The auditors will provide a written report on the findings to provide assurance. The auditor soften would provide a representation letter although it is not required for attestation. Also the audit will provide a written assentation for an agreed-upon procedures engagement on compliance or internal control over compliance. The attest procedures often include reviews, such as data analytic reviews, commission agreement reviews, WebTrust and SysTrust engagements, financial projections, and compliance reviews (Hunton, Bryant & Bagranoff, 2004).
Findings and Recommendations
A findings and recommendations is known as a consulting engagement because a findings and recommendations mainly provide consulting or advisory services, such as system implementations, enterprise resource planning implementations, and security reviews. In a findings and recommendations engagement, KFF will state in general terms regarding to the audit without agreeing to any...