Audit Paper

branch A - ANSWER BOTH QUESTIONS IN THIS SECTION Q1 You atomic number 18 the auditor of orchard orchard apple tree tree Co, a small firm manufacturing hawk machines. The progeny form is put down on the permanent load as follows: Wages be based on hours worked which be recorded on clock cards. These argon kept at the grind gate and postulateed each week by the foreman who checks the hours shown, signs the clock-cards, and passes them to the reinforcement clerks Mrs Cole and lady friend Lampard. Mrs Cole calculates the descend hours worked and ensures the cards have been initialled by the foreman, Mr Neville. The clock-cards are then passed to Miss Lampard who prepares the each week payroll using a personal data central processing unit and Sage software. The foreman rings Miss Lampard on Wednesday, the daybreak of the payroll preparation to inform her of any starters or leavers during the week and any increases in rates of pay. Miss La mpard alters the payroll outstrip file for these changes before commencing the payroll run. The software produces the payroll, payslips and a choke analysis. The payroll is forwarded to the financial director Mr Gerard, who signs a cheque for draw in stipend, and enters the payroll total in the nominal ledger. The wages clerks put in the cash from the bank and prepare the pay-packets from the information on the payslips. The wages payout is performed in the factory by the foreman, Mr Neville, on Thursday mornings.

You are required to: a) Draft a management letter to the directors of apple Co which s hould : ? Identify 5 weaknesses ! in the present system ? fate the implications of such weaknesses ? Make practical recommendations for improvement (15 marks) b) mess up a programme of substantive tests to quantify the exercise of the weaknesses identified above. ( 5 marks) ( Total 20 marks) Q2 In the business line of the audit canvas of the financial statements of Apricot Co,...If you want to keep a teeming essay, order it on our website: OrderCustomPaper.com

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