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Audit Program Design Part Ii
Audit Program Design Part II
Company: Apollo Shoe Company
Audit Begins: January 19, 2010
Audit Ends: March 31, 2010 (Tentative)
Sales/revenue and collection cycle
Payroll and personnel cycle
Acquisition and payment cycle
All Transactions, orders, and payments processed January 1, 2007 through December 31, 2007
• To determine internal control compliance to sub objectives for payroll and personnel cycle, sales/revenue and collection cycle, and the acquisition and payment cycle.
• To obtain control evidence and documentation about the existence, accuracy, classification, timing and completeness of recorded acquisition transactions.
Statement on Auditing Standards (SAS) No. 99 – Fraud Auditing Standards
John Butler – Sales and Collection
David Sargent – Payroll and Personnel
Perry Boydstun – Acquisition and Payment Cycle
Each auditor will perform their assigned area of tests of controls and substantive test using sampling techniques as appropriate. Strengths and weaknesses’ should be denoted by using a “S” or “W” on each area applicable area of the flowchart and checklist of each assigned area. The summary status (“Ss” and “Ws”) will be listed in the bridge worksheet for SOX 404 Audit analysis. Bridge Worksheet for Sales and Collection Cycle – SOX 404 Audit
Public companies typically rely heavily on proper internal controls to maintain an effective sales and collection cycle. As such, AOW will need to expand the substantive tests of transactions to include tests on controls. First of all, it is vital for AOW to understand the sales and collection cycle and typical account balances within Apollo Shoes. Second, it is vital to understand the documentation and records used through the cycle. Finally, AOW will ensure that all...

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