Marcum Accountants - Laserfiche WebLink

Home Browse Search

• • • • City of — - , a --� ®• Sunny - _ -�,�,�� • • • Perform substantive account balance and transactions are initiated, recorded, processed and transaction tests. Statistical samples will be drawn reported, from their occurrence to their inclusion in the • from major transaction systems, including cash financial statements. During the planning stage of our • disbursements, cash receipts, accounts payable, audit, we evaluate the effect information technology (IT) and payroll. The size of the samples will be will have in performing our audit procedures. This • determined after the review of the internal control evaluation includes obtaining an understanding • system.There are three types of tests that involve (generally through observations and inquiries of IT ® audit sampling (statistical and non-statistical personnel) of internal controls and identifying those sampling): controls that are automated. o When key internal controls are automated, we use • Account Balance Tests our IT specialist to perform a detailed review of those Substantive tests of account balances are automated controls. Our IT specialist will then o performed on year-end balances. Certain communicate to the audit engagement team as to • accounts justify a 100 percent examination, such whether such controls are working as prescribed by ® as confirming a bank balance, which does not management. With this information, the audit engagement involve sampling at all. team determines the extent of their audit procedures. 41) Transaction and Control Tests In client situations where there is significant • Substantive testing and control tests are often accounting data processed electronically, we use a • combined to use one sample to achieve more than state-of-the-art software program (IDEA) to extract and one audit objective. We often test the controls to summarize computerized financial data files. Some of o verify that the transactions were properly authorized the uses of this program are: • in accordance with the City's procedures. Under • Retrieving aged receivables information • the Federal and Florida Single Audits, we are • Extracting credit balances in accounts receivable required to test internal controls over compliance reports • for each major program. • Extracting pre-determined sample items • Compliance Tests from reports for testing • Compliance tests with laws and regulations are • Merging files for the purposes of extracting included with the tests of transactions and controls. information that meets predetermined criteria • ® Additional samples are sometimes necessary to Sorting information • test specific laws and regulations. Sample sizes for • Footing reports • • compliance testing are determined based on the Searching for anomalies number of transactions and the significance of o the requirement. This program provides an efficient way for us to o extract and test computerized accounting information, • The audit team will report on a weekly basis to enabling us to audit through the computer, rather than Management the status of any potential adjustments so around the computer. • that Management may have adequate time to investigate, Phase III: Evaluation of Audit Results • gather information and respond, if necessary. This phase includes a review of all audit • Information Technology Audit Techniques documentation by the partners to ensure that testing • In accordance with Professional Auditing Standards, and documentation support the conclusions reached. we are required to gain an understanding of the This phase also includes preliminary discussions • procedures, both automated and manual, by which with management of the audit findings. • • • ® n Q��I Inn Proposal for Professional Auditing Services ACCOUNTANTS• ADVISORS www.marcumllp.com • Page 34 0 1215079F