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    CASE: IS Auditng: Required

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    evel street
    This document discusses controls and audit procedures for a retail company that has implemented an electronic data interchange system for issuing purchase orders. It provides 4 questions: 1. What is the best approach to determine if controls limiting purchases by product line worked properly? 2. What combination of controls is needed to ensure only authorized purchases from approved vendors? 3. What audit techniques provide the most evidence the payment program correctly approves items matching within 0.5%? 4. What procedures best test if only authorized changes were made to computer programs?

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    CASE: IS Auditng: Required

    Uploaded by

    evel street
    290 views1 page
    This document discusses controls and audit procedures for a retail company that has implemented an electronic data interchange system for issuing purchase orders. It provides 4 questions: 1. What is the best approach to determine if controls limiting purchases by product line worked properly? 2. What combination of controls is needed to ensure only authorized purchases from approved vendors? 3. What audit techniques provide the most evidence the payment program correctly approves items matching within 0.5%? 4. What procedures best test if only authorized changes were made to computer programs?

    Original Description:

    Kendomart

    Original Title

    9221871310576054

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    This document discusses controls and audit procedures for a retail company that has implemented an electronic data interchange system for issuing purchase orders. It provides 4 questions: 1. What is the best approach to determine if controls limiting purchases by product line worked properly? 2. What combination of controls is needed to ensure only authorized purchases from approved vendors? 3. What audit techniques provide the most evidence the payment program correctly approves items matching within 0.5%? 4. What procedures best test if only authorized changes were made to computer programs?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    290 views1 page

    CASE: IS Auditng: Required

    Uploaded by

    evel street
    This document discusses controls and audit procedures for a retail company that has implemented an electronic data interchange system for issuing purchase orders. It provides 4 questions: 1. What is the best approach to determine if controls limiting purchases by product line worked properly? 2. What combination of controls is needed to ensure only authorized purchases from approved vendors? 3. What audit techniques provide the most evidence the payment program correctly approves items matching within 0.5%? 4. What procedures best test if only authorized changes were made to computer programs?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    CASE: IS Auditng

    line was working properly during the past


    KENDOMART is a retail company has just
    year?
    implemented electronic data interchange (EDI) to
    issue purchase orders to major vendors. The client 2. Sometime one control procedure by itself is
    has developed a data base of “approved vendors.” not sufficient to achieve a particular control
    New vendors can be added only after a thorough objective. One control objective for this
    review by the purchasing manager and marketing system is to ensure that purchase orders are
    director. Only purchasing agents can issue made only by authorized purchasing agents,
    purchase orders, and the amount of purchase to authorized vendors, for authorized goods.
    orders for a particular product line cannot exceed What combination of control procedures
    a budgeted amount specified by the marketing would be necessary to accomplish this
    manager. objective?

    All purchase go to the distribution center 3. The auditor desires to determine that the
    where they are electronically scanned into the program is correctly approving items for
    payment only when the purchase order,
    computer system. All incoming items must
    receiving report, and vendor invoice match
    reference a firm purchase order, and any items that
    within the tolerable 0.5 percent. Which
    do not contain such a reference will not be
    computerized audit techniques would
    accepted. Prenumbered receiving slips are not
    provide the most persuasive evidence as to
    used, but all receipts are referenced to the
    the correct operation of the program?
    purchase order. Price tags are generated per the
    purchase order and for the quantities indicated by 4. The auditor desires to test controls over
    the electronically scanned-in receiving report. The computer program changes. The specific
    number of price tags generated is reconciled with objective to be addressed in the following
    the number of products received. audit step is that only authorized changes
    have been made to computer programs (i.e.,
    The vendor sends an invoice to the retailer. there are no unauthorized program
    The invoices are entered into the system by data- changes). The organization uses an
    entry clerks. The computer software is automated program library system, and the
    programmed to match the vendor invoice, the auditor obtains copies of the table of
    purchase order, and the receiving report. If the contents of the program library system at
    three items are matched within a tolerance of 0.5 various periods of time. The table of contents
    percent, the computer program schedules the indicates the date a change was last made to
    items for payment at a time to take advantage of the program, the version number of the
    purchase discounts. A check is generated by the program, and the length of the program.
    cash disbursements program and is electronically What audit procedures would best address
    signed and mailed. If there is a discrepancy among the stated objective?
    the three documents, a report is printed and sent (CIA adapted)
    to the accounts payable department for
    investigation.

    Required
    1. What is the best audit approach to determine
    whether the control procedure to limit the
    amount of purchases for a particular product

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