Pre Audit Planning Worksheet by HC12080710281

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									This is the AuditNet Standard Risk Control Audit Matix which incorporates formats
used by many audit organizations in their documentation working papers. There are
format templates for risk control, audit procedures, questionnaires and checklists.
There is a blank workpaper and a report summary that can in used by audit
organizations. AuditNet has prepared a monograph for guidance on preparing and
developing audit work programs, checklists, questionnaires and matrices. The
monograph is available to AuditNet subscribers. For more information go to
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General controls
                       General control area
Control environment

Control environment
Control environment
Control environment
Control environment

Control environment
Business planning

Management reporting

Financial reporting


Records retention

Business continuity

Physical security


Fraud




Business process audit areas
                          Control area
Procure to pay

Procure to pay
Procure to pay

Procure to pay

Procure to pay

Procure to pay

Procure to pay

Procure to pay
Customers

Customers

Cash
Cash

Book to report

Payroll

Payroll
Fixed assets

Inventory

Inventory
Overall reasonableness


Revenue
Revenue
Tax reporting
Tax reporting
Tax reporting
Tax reporting
                                          Control
Company has a formal ethics and a communication policy to ensure that ethical standards
are documented and communicated to all employees.
Company has a formal audit committee, consisting of independent board members.
Related party transactions.
Conflict of interest policy.
Determine whether the company is current in filing its most recent IRS forms and financial
statements.
Permanent records review.
Business and operating plans are reviewed on a regular basis to ensure that the company is
achieving its planned objectives.
Management has implemented formal processes for reviewing operational data to assist
with day-to-day decision-making.
Systems are maintained to store all transactional and accounting data required to produce
financial statements. (Note: If systems are relied upon to produce financials, consider
whether information technology controls should be evaluated.)
The company maintains a formal records retention policy, which enforces the minimum
standards required by the Internal Revenue Service (IRS).
Management has developed a business continuity policy, which states that the procedures
should be enforced in a business interruption situation.
Key documents, including employee records, checks, contracts, customer information, and
other confidential materials, are kept in locked or otherwise physically secure locations.

Inquire as to whether any fraud has occurred in the past two years.




                                          Control
Duties are segregated so that the person who authorizes vendor payments is not
responsible for generating purchase orders or writing checks.
Formal purchase orders or check requests are used for every purchase.
A list of authorized vendors is maintained; purchase orders or check requests can be written
only against an authorized vendor.
Vendors are audited on a semi-annual basis to determine if conflicts of interest exist
between procurement personnel and vendors.
Vendor invoices are checked against signed purchase orders and delivery receipts before a
check is cut.
Numbered purchase orders and delivery receipts are kept in a locked area and are logged
in sequential order.
New sellers of the company's product are required to pass a prospective customer credit
review before credit terms can be offered.
A subsidiary ledger of all purchase and accounts payable transactions is maintained and is
stored within a physically secure area.
Customer records are maintained, including a purchase history for each transaction during
the audit year.
An accounts receivable ledger is kept for all customer credit purchases. An aged accounts
receivable report is generated to monitor cash collections.
Verify completeness of cash reporting.
A cash collection log is maintained for all cash receipts. Such receipts are deposited at the
end of each business day.
A log for journal entries that affect the monthly closing process is kept to document all
adjustments made for reporting purposes, such as depreciation or amortization.
An employee roster is maintained, including status (exempt/non-exempt), pay rate, and tax
jurisdiction.
State and federal taxes are withheld properly for all payroll, based on tax jurisdiction.
A log of all fixed assets, along with a depreciation schedule, is maintained in a secure
location.
An inventory valuation method (such as weighted average, FIFO, or LIFO) is used
consistently throughout the audit period.
An inventory ledger including a cost-of-goods-sold analysis should be maintained.
Perform an analytic review of the balance sheet and income statement. The comparison
should be made of the current year to prior year and in the case of the income statement, a
comparison of the actual to budgeted amounts should be made.
Perform an analytic review of the company's revenue.
Obtain any grant or sponsorship contracts.
Verify compliance with tax reporting for vendors.
Verify compliance with tax reporting for employees.
Verify compliance with tax reporting for the entity.
Verify compliance with state reporting requirements.
Include in testing?   Testing frequency




Include in testing?   Testing frequency
Notes




Notes
                              Client Name
                      Internal Control Framework

          Date Completed:
          Completed By:
          Reviewed By:

          Question                                                  Yes No* Comments /Description




              To the best of my knowledge, the answers and comments noted above are accu



          Name and Title of Person Completing Form (please print)                            Name and Title of Department Dire


* For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
or is to be performed.                            Questionnaire
                   Signature of Person Completing Form                                                Signature of Department


                             8/7/2012
                          Date Form Completed                                                     Date of Department Directo




* For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
or is to be performed.                            Questionnaire
                           Employee Responsible for Task




s noted above are accurate and reflect the current



Name and Title of Department Director (please print)


            * For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
            or is to be performed.                            Questionnaire
   Signature of Department Director



Date of Department Director's Signature




      * For a “No” answer, cross-reference to either a compensating control or to audit work which has been performed
      or is to be performed.                            Questionnaire
Finding Ref #   Control Testing   Finding
Management Response & Treatment

								
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