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    The document discusses key controls in auditing such as segregation of duties, physical controls, information technology controls, and documentation controls. It also discusses deficiency in auditing and control recommendations. The document outlines various assessments an internal audit department could perform including financial, operational, IT, compliance, risk, and fraud audits.

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    The document discusses key controls in auditing such as segregation of duties, physical controls, information technology controls, and documentation controls. It also discusses deficiency in auditing and control recommendations. The document outlines various assessments an internal audit department could perform including financial, operational, IT, compliance, risk, and fraud audits.

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    The document discusses key controls in auditing such as segregation of duties, physical controls, information technology controls, and documentation controls. It also discusses deficiency in auditing and control recommendations. The document outlines various assessments an internal audit department could perform including financial, operational, IT, compliance, risk, and fraud audits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    3 views4 pages

    Document

    Uploaded by

    johnsondanielsesay236
    The document discusses key controls in auditing such as segregation of duties, physical controls, information technology controls, and documentation controls. It also discusses deficiency in auditing and control recommendations. The document outlines various assessments an internal audit department could perform including financial, operational, IT, compliance, risk, and fraud audits.

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    NAME: DANIEL JOHNSON SESAY

    ID: 52088

    MODULE: AUDITING AND ASSURANCE

    RASPBERRY CO

    a.
    i. Key control in auditing referred to the policies and procedures put in place to manage
    and secure access to physical keys that are used to access important areas or assets
    within an organization. Here are some key controls an auditor may seek to place
    reliance.

    SEGREGATION OF DUTIES: The auditor may seek to ensure that key financial responsibilities are divided
    among different individuals to prevent any single person from having complete control over a financial
    transactions or process. This helps to reduce the risk of errors or fraud going undetected.

    PHYSICAL CONTROLS: The auditor may seek to assess the physical security measures in place to
    safeguard assets and prevent unauthorized access. This may include controls such as lock, security
    cameras and restricted access to sensitive areas.

    INFORMATION TECHNOLOGY CONTROL: The auditor seek to evaluate the effectiveness of the
    information technology control, such as users access control, data encryption and system monitoring.
    These controls help to protect the integrity and confidentiality of the financial information

    DOCUMENTATION CONTROL: The auditor may seek to ensure that all financial transactions are properly
    documented with supporting evidence, such as invoices, receipts and contracts. This helps to provide a
    clear audit trail and support the accuracy of financial statement.

    MONITORING CONTROLS: The auditor may seek to assess the effectiveness of ongoing monitoring
    activities, such as internal audits or management reviews, to detect and address any deficiencies in
    internal controls. This helps to ensure that controls are operating effectively over time

    ii. TEST OF CONTROL: Is an essential part of the auditing process that helps auditors assess
    the risk of material misstatement and determine the appropriate audit approach to
    ensure the accuracy and reliability of the financial statement.

    KEY CONTROL TEST OF CONTROL


    SEGREGATION OF Select a sample of
    DUTIES transactions and trace
    them through the system
    to ensure that different
    individuals are involved
    in key financial
    processes.
    PHYSICAL Conduct a walkthrough
    CONTROLS of the premises to
    observe security
    measures in the place
    and test access controls
    to sensitive areas.
    INFORMATION Review users access logs,
    TECHNOLOGY conduct penetration
    CONTROL testing and verify that
    data encryption
    protocols are being
    followed to assess the
    effectiveness of the
    information technology
    controls.
    DOCUMENTATIO Select a sample of
    N CONTROL transactions and verify
    that they are supported
    by adequate documents
    to ensure that financial
    transactions are properly
    documented.
    MONITORING Review internal audit
    CONTROLS report, management
    reviews and incident logs
    to verify that monitoring
    activities are being
    conducted regularly and
    effectively to detect and
    address deficiencies in
    internal controls

    b. Deficiency in auditing refer to weaknesses or inadequacies in internal control, procedures or


    processes that could potentially results in errors, irregularities or fraud going undetected.

    CONTROL DEFICIENCY CONTROL


    RECOMMENDATION
    WEAK AUTHORIZATION Strengthen authorization
    AND APPROVAL: and approval control by
    Transactions are not implementing clear
    appropriately authorized approved hierarchies,
    and approved leading to requiring documented
    potential unauthorized approval for all
    activities or errors transactions, and
    enforcing compliance
    with company policies.
    INADEQUATE PHYSICAL Enhance physical controls
    CONTROLS: insufficient by implementing security
    security measures in cameras access control
    place to protect physical system, alarm system
    assets such as cash, and regular security
    inventory or sensitive patrols to safeguard
    information assets and prevent an
    unauthorized access.
    WEAKNESSES OF I T Enhance information
    CONTROL: Inadequate technology controls by
    information technology implementing strong
    controls exposed the password policies,
    organization to cyber regular software updates,
    security risks data data encryption
    breaches or system protocols, access control
    failure and conducting regular I
    T security assessment.
    RECONCILIATIONS OF Improve reconciliation
    DISCREPANCIES: processes by assigning
    Reconciliations are not dedicated staff,
    performed accurately or implementing automated
    in a timely manner, leads reconciliation tools,
    to errors in financial conducting regular
    reporting reconciliations and
    reviewing reconciliation
    for accuracy and
    completeness.
    LACK OF REVIEWING Strengthen review and
    AND OVERSIGHT: oversight control by
    Inadequate management conducting regular
    oversight and review management reviews,
    processes can result in establishing oversight
    undetected errors or committee,
    fraudulent activities. implementing
    performance metrics and
    fostering a culture of
    accountability.

    c. An internal audit department could carry out various assessments to evaluate and improve the
    effectiveness of an organization’s internal controls, risks management process and compliance
    with policies and regulations. Some of the assignment that raspberry internal audit department
    could carry out are as follows:
    FINANCIAL AUDIT: Conducting a thorough examination of financial records, transactions and
    reporting process to ensure accuracy, completeness and compliance with accounting standards
    and regulations.
    OPERATIONAL AUDIT: Evaluating the efficiency and effectiveness of operational processes,
    procedures and controls, to identify opportunities for improvement and cost savings.
    INFORMATION TECHNOLOGY AUDIT: Reviewing the organization’s information technology
    systems, infrastructures, data security measures and information technology controls to identify
    vulnerabilities, cyber security risks and opportunities for enhancing I T governance.
    COMPLIANCE AUDIT: Assessing the organization’s adherence to laws, regulations of industry
    standard and internal standards policies to mitigate legal and regulatory risks.
    RISKS ASSESSMENT AUDIT: Identifying and evaluating potential risks and vulnerabilities that
    could impact the organization’s operations, financial health reputation or compliance
    obligations.
    FRAUD INVESTIGATION: Investigating allegations of fraud, misconduct, or unethical behavior
    within the organization to identify perpetrators, recover losses and strengthen fraud prevention
    measures.
    PROCESS REVIEWS: Analyzing specific business process or functions to identify inefficiencies
    bottle necks, control deficiencies, or opportunity for streamlining operations and enhancing
    productivity.
    VENDOR AUDIT: Assessing the performance, compliance and risks management practices of
    key vendors and suppliers to ensure they meet contractual obligations and align with the
    organization standards.
    d. REVIEW PAYROLL RECORDS: The auditor should review payroll records, including employee’s
    wage details, tax deductions and payment made to taxation authority to ensure that the accrual
    is based on accurate and up-to-date information.
    TESTING TAX CALCULATIONS: The auditor should select a sample of employee wages calculation
    and tax deductions to verify the accuracy of the calculation and ensure that the correct tax rate
    have been applied.
    CONFIRMING TAX PAYMENT: The auditor should confirm with the taxation authority that the tax
    payment made by the company match the amount reported in the financial statement and that
    there are no discrepancy or outstanding liabilities.
    ANALYZING RECONCILIATION: The auditor should review reconciliations between payroll records,
    tax payments and the general ledger to ensure that all transactions properly recorded and that
    there are no unexplained differences.
    ASSESSING COMPLIANCE WITH TAX REGULATIONS: The auditor should verify that the company
    has complied with all relevant tax laws and regulations in calculating and remitting taxes on
    employment income.
    REVIEW CORRESPONDENCE WITH TAXATION AUTHORITY: The auditor should review any
    correspondence or communication with the taxation authority regarding tax payments,
    assessment or audit to identify any potential issues or discrepancies.
    EVALUATING INTERNAL CONTROLS: The auditor should assess the effectiveness of internal
    controls related to payroll processing, tax calculations and tax payments to determine if there
    are any weaknesses that could impact the accuracy of the accrual for tax payable on
    employment income.
    By performing these substantive procedures, the auditor can obtain sufficient and appropriate
    audit evidence to confirm the accuracy and completeness of the year end accrual for tax payable
    on employment income and provide assurance on the reliability of the financial statement.

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