auditing

Resources

Your main resource is the Professional Engagement Guide.

• See the general list of controls: Under

Templates

1. Engagement Forms

Audits

• Look for # 582 Worksheet Library of typical control activities
• And at some of the detailed audit test forms: e.g. # 545 Control design / implementation Revenues, receivables, receipts
• Look also at:

Core Concepts: Appendices

A2. Components of Internal Control

Somewhere I have some other documents which will be useful but are not needed for the first submission. I will post those to Blackboard.

Required

Throughout this assignment you are to take on the role of advisor to the President of the Lux Candle Company Limited, a small manufacturer of candles. In 2020, they have 40 full time equivalent employees.

a)Describe the general roles of the current employees. How many are assigned to production or service delivery? How many are assigned to management and administrative positions other than accounting? How many (if any) are assigned to accounting roles, and what are those roles?

b)Design a system of controls over purchases, payables, and cash disbursements. This must be appropriate to the size of your organization and the number of employees assigned to accounting

You may wish to use the flowcharting symbols in Excel or Vision to document your control system.

Where are the marks?

The control systems you design must be appropriate for your organization. You will be penalized if the controls appear only to be boiler plate or direct copies from some source. This does not mean that you need to phrase things in ur manner. For example, a control such as "The credit manager approves all customer credit allowances in writing" is perfectly acceptable if you have a credit manager. If there is no credit manager, you will be penalized.

Your submission will be evaluated on whether the controls are basically as expected for this level of growth for the organization.Implementing and maintaining controls costs money. Brining in a state-of-the-art system of controls too early is likely not appropriate and may cost you marks.