Audit Planning and Procedure

1.What are the responsibilities of the successor and predecessor auditors when a company is changing auditors?

2.Explain why auditors need an understanding of the client's industry. What sources are commonly used by auditors to learn about the client's industry.

3.What is the purpose of the clients' performance measurement system? Give examples of key performance indicators for the following businesses: 1. A chain of retail clothing stores 2. A hotel chain

Internal control

1.Describe four phases performed by the auditor when obtaining an understanding of internal control and assessing control risk

2.What is walkthough of internal control.

3.Recently while eating lunch with your family at a local cafeteria, you observe a practice that is somewhat unusual. As you reach the end of the cafeteria line, an employee asks how many persons are in your party. He then totals the foods purchases on the trays for all of your family and enters the number of persons included in the group. He hands you the receipt and ask you to pay when you finish eating. Near the end of the meal, you decide you want a piece of pie and coffee so you return to the line, select your food, and again go through the line. The employee goes through the same procedures, but this time he staples the second receipt to the original and return it to you.

When you leave the cafeteria, you hand the stapled receipt to the cash register operator, who total the two receipts,takes your money and put the receipts on spindle.

Required:

i.What is the internal control has the cafeteria instituted for its operations?

ii.How can the manager of the cafeteria evaluate the effectiveness of the controls?

iii.How the controls differ from those used by the most cafeterias?

iv.What are the cost and benefits of the cafeteria's system?