Essays on Auditing and Assurance Services Assignment

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The paper 'Auditing and Assurance Services' is a great example of a Finance and Accounting Assignment. IT is apparent that the company uses the latest machine such as computer-aided design in managing their numerous assets and therefore there is a potential risk of virus infection in the system that might interfere with the company’ s data (Zabihollah Rezaee 2009). The management of MTL provides a single password to account clerk, tiffany and George pose a threat to fraud since in case of fraud or errors, no one will clearly be held accountable.

The company purchases all their equipment and software from one supplier Mr. Lee who is as well accountable for the maintenance of computer-aided design and manufacturing. A treat is seen since; the supplier is the sole supervision of the CAD AND CAM which poses a threat of confidentiality of the company’ s private information Criteria to be audited Antivirus What is the state of the internal control system over the security of the computer from virus infection, is there any back up to act as a security in case of system infection by the virus.

It is apparent that the company system is not all fully secured with anti-virus because the program that was a booth from one of their suppliers was infected by virus and George’ s daughter had an antivirus in her system which saved the company from virus infection (Larry Rittenberg 2011). This is a threat to the company since the virus will get rid of the company’ s vital data and therefore strict measures such as firewall and advanced antivirus should be installed into the company’ s system in order to secure the company’ s system from viruses infections. Password security checks The company has allocated one security password for three different people which is deemed a risk and therefore, each and every individual should be given a password in order to enhance the accountability of every person.

ana advanced password system such as the use of biometrics and deadman door lock-up will be relevant in this type of security in order to further enhance the security of the system, 2) Accounting system The accounting department is one of the crucial department that needs and effective internal control system.

It is apparent that the accounting clerk is given more responsibility to supervise the receivables and cash disbursement. Therefore an audit check for integrity as well as competence of the account of paramount importance Isabel the accounting clerk had no experience in the past and therefore it is clear that she got experience form the company. A threat is seen in that the company appointed an account clerk who does not have experience in accounting. And therefore, substantive checks need to be undertaken on all transactions undertaken by is able in order to guarantee authenticity and consistency in the recording.

Where there is a high volume of transactions, the company uses the effort of the administrative staff that does not have relevant experience in the accounting department (Larry Rittenberg 2011). There is a risk since the administrative staff does not have the necessary knowledge and experience to handle the accounting work and hence the threat of wringing data entry will be eminent. The management should ensure that effort of those with skilled knowledge ion accounting are employed so as to guarantee the data validation and entry into the system.

Reference

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Ainapure/ainapure. Auditing and Assurance. 2013.

Audrey A. Gramling, ‎Karla M. Johnstone, ‎Larry E. Rittenberg. Auditng. 2012.

Iain Gray, ‎Stuart Manson. The Audit Process: Principles, Practice and Cases. 2008.

Larry Rittenberg, ‎Karla Johnstone, ‎Audrey Gramling. Auditing: A Business Risk Approach . 2011.

VARSHA AINAPURE, ‎MUKUND AINAPURE. Auditing and Assurance. 2009.

Zabihollah Rezaee, ‎Richard Riley. Financial Statement Fraud: Prevention and Detection. 2009.

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