RUNNING HEADER: AUDIT PROPOSAL
Yildirim Aydin, Jennifer Crough, Blanca Colon, Robin Geisler, and Connie Goddard
University of Phoenix
February 7, 2011
Now that the accounting software has been improved for Kudler Fine Foods, it is time to employ an audit plan to evaluate the processes of all the new systems. We will compare them to the previous accounting processes to determine if the current software system has improved. In addition, we will look at the different types of audits, recommend the most appropriate one, and explain how the audit will be carried out.
Types of IT Audits
The four main types of IT audits are Attestation, Findings and Recommendations, SAS 70 Audit, and SAS 94 Report. “IT audit is the process of collecting and evaluating evidence to determine whether a computer system has been designed to maintain data integrity, safeguard assets, allows organizational goals to be achieved effectively, and uses resources efficiently” (INTOSAI, n.d.).
Attestations are “assignments where the auditor issues a report stating a conclusion about the reliability of subject matter that is the responsibility of someone else” (Hunton, Bryant, & Bagranoff, 2004). Finding and Recommendations reports are also “considered ‘consulting’ or ‘advisory’ services”, such as an SAP and Oracle (Hunton, Bryant, & Bagranoff, 2004). “SAS 70 (the Statement on Auditing Standards No. 70) defines the standards an auditor must employ in order to assess the contracted internal controls of a service organization,” such as payroll companies (TechTarget, 2005.). Lastly, SAS 94 Reports, “The AICPA Auditing Standards Board issued the Statement on Auditing Standard 94 (SAS 94) in 2001, entitled, ‘The Effect of Information Technology on the Auditor's Consideration of Internal Control in a Financial Statement Audit.’ This standard requires financial auditors to consider information technology as part of...