Grau & Assoc. - Laserfiche WebLink

Home Browse Search

I I I I I I I I I I I I I I I I I I I VI, PROPOSAL REQUIREMENTS B,PROPQSAL 8. SPECIFIC AUDIT APPROACH (Continued) d. Extent of use of IMS software in the engagement (Continued) Each team member possesses their own laptop computer with pertinent audit- related software. We will utilize prosystem Fx Engagement, ACL for Windows, database programs and spreadsheet applications for auditing purposes. Our IS expertise, combined with extensive auditing and consulting experience mean that we understand the technical intricacies of complex information systems in the context of real-world application. Utilizing this expertise we will be able to, · evaluate IS general controls within the computer environment; · document critical transaction processing systems; · identify key processes and controls within these transaction processing systems; · evaluate the effectiveness of identified controls; · advise the audit team on results of the evaluation and effect on planned audit procedures; · design, develop and execute computer-assisted audit techniques using computer audit software packages; and · assess the internal controls e. Type and extent of analytical procedures to be used in the engagement Statement of Auditing Standards on Analytical Procedures provides guidance on the use and extent of analytical procedures in all audits. Analytical procedures are required in the planning and overall review stages of the audit, and are used in the following areas: Audit Planning Analytical procedures can provide great insight in planning an audit. These analyses can enhance our understanding of City's transactions and events that may have occurred during the year under audit. We compare the current balances to the prior year and to the current budget. Isolating significant differences can identify areas that may require additional attention during the field work. For example, such a review could identify a new revenue source for which we would need to obtain documentation supporting the authority for collecting such monies. Substantive Tests Analytical procedures can be used as effective substantive tests in certain circumstances, for example, testing certain payroll related expenditures, such as payroll taxes, which are a specific percent of wages. Overall Review Analytical procedures used at the conclusion of the audit are designed to assess the conclusions reached and evaluate the overall financial statement presentation. 'lr; ~r~'~;f~d ~~~~~~,~,!:~ 38