You are the auditors, and are to produce a report for your client that adds value to their daily operations.
The point of this assignment is to choose a process to document, consider the controls in place based on the risks related to that process, document the process in either narrative or flowchart form, and identify any additional controls you would recommend for improvement. We will spend time in class discussing possible processes and controls that may relate to your chosen company, department, or office, to keep you on track.
Select a company where you have worked part-time, an organization in which you have some acquaintance (relative or friend) and therefore have access, or any department or office on campus, (for example, Financial Aid, Registrar, Wendy’s on campus) to use for this assignment. You may also simply choose a company that you have research for information online. Choose one area of operations ( examples: cash receipts, sales, shipping, receiving, payroll, student records, student financial aid, etc) that is applicable to the organization or department you have chosen.
For the area selected:
- Identify the major transactions processed. They do not necessarily have to be of a monetary nature. For example: In the Admissions Office, what is the process when they receive an admissions application? How do they protect sensitive personal information, etc
- Select a major transaction (process) and perform a walkthrough of the transaction to gain an understanding of how the transaction is processed and the controls implemented to mitigate the risks to reliable financial reporting or compliance. You may need to talk to individuals performing the process, observe the process and also review any procedure manuals they may provide. ***** You need to think like the auditor.
- Document the important controls and the risks they were intended to mitigate.
- Identify additional controls you would recommend to improve the organization’s internal controls.
- The goal is to produce a report for your client.