Here is the background information on your task It is common practice for audit staff to ask questions (of both audit team members and client personnel) to understand the client's processes and internal controls. As such, we will prepare a list of questions for review by Kim, our Audit Senior, who has extensive experience with this particular client. For any unanswered items, we will send the remaining questions to the client's process owners for a response. During the audit, keep in mind the need to obtain the required information from the client while causing minimal disruption to their normal business activities (if at all possible). Because the client's operations are ongoing, they will have more work than usual while under audit-we, as auditors, should be mindful not to engage client personnel for information/documentation that other audit team members have already obtained. That said, an important aspect of information-gathering is confirming adequate coverage of the test scope, and interaction/information-gathering is an important part of the test process. Also vital to consider in your list of questions is the current status/resolution of any prior year audit findings. Based on your review of prior year workpapers, you noted that a finding was reported for the previous year and resulted because some purchase approval documentation was not appropriately archived (and could not be retrieved/provided for audit support). Notably, this finding occurred in the portion of the prior year's audit period, which fell before the phase-in of the Purchase Request Portal. Utilize the Initial Set of Questions Template provided in the Resources section to guide you in compiling a thorough list of questions surrounding ABC Company's purchasing process. The list will first be emailed to Kim (Audit Senior). Utilize the Email to Kim (Senior Associate) Template to draft that email. Once you upload those two files for this task, Kim will provide her responses. Review those results to determine which items were able to be answered internally and which are still outstanding (i.e., client follow-up required). 2. Next, prepare an email to Kim (your audit senior) by utilizing the provided Word document (Email to Kim (Senior Associate) Template). In your email, explain the attached list of questions, and request any responses she might have. In this part of the simulation, do your best to practice your professional writing and communication skills. Task 2: Initial Set of Questions Template Note to Participants: The below outline models brainstorming questions to ask (and necessary information to gather) during the audit process. The below list should exclude any information we already have on file or any information already covered by the client's internal Purchase Policy. Please feel free to add categories to the template below as you see fit while compiling your list. 1) Process \& Control Changes (Which Have Occurred Since Prior-Year Audit Period): 2) Purchase Request Portal: a) Portal Issue Reporting: b) Purchase Approval Assignments (System Maintenance): 3) Approved Vendor Listing: 4) Prior-Year Exception(s) Follow-up: 5) Approval Timing: 6) Disclosure of Issues Which Occurred During the Audit Period: 7) Internal Reviews (of Purchasing Process \& Controls) Performed During Audit Period: Note to Participants: The below outline models a professional correspondence between a subordinate and supervisor of the audit team. Be sure to outline the following in your emailed correspondence to Kim (the Audit Senior): - Purpose of email - Current task status - Information requested (including notice that the summarized questions are attached) - Desired response date and request for Audit Staff's next steps (once Kim's reply is received) Please feel free to add any additional content as necessary and remove the red text (shown below) to make your updates. Hi Kim, [Based on the directions above, update for your professional email here] Best regards, \{Your Name Here\} Here is the background information on your task It is common practice for audit staff to ask questions (of both audit team members and client personnel) to understand the client's processes and internal controls. As such, we will prepare a list of questions for review by Kim, our Audit Senior, who has extensive experience with this particular client. For any unanswered items, we will send the remaining questions to the client's process owners for a response. During the audit, keep in mind the need to obtain the required information from the client while causing minimal disruption to their normal business activities (if at all possible). Because the client's operations are ongoing, they will have more work than usual while under audit-we, as auditors, should be mindful not to engage client personnel for information/documentation that other audit team members have already obtained. That said, an important aspect of information-gathering is confirming adequate coverage of the test scope, and interaction/information-gathering is an important part of the test process. Also vital to consider in your list of questions is the current status/resolution of any prior year audit findings. Based on your review of prior year workpapers, you noted that a finding was reported for the previous year and resulted because some purchase approval documentation was not appropriately archived (and could not be retrieved/provided for audit support). Notably, this finding occurred in the portion of the prior year's audit period, which fell before the phase-in of the Purchase Request Portal. Utilize the Initial Set of Questions Template provided in the Resources section to guide you in compiling a thorough list of questions surrounding ABC Company's purchasing process. The list will first be emailed to Kim (Audit Senior). Utilize the Email to Kim (Senior Associate) Template to draft that email. Once you upload those two files for this task, Kim will provide her responses. Review those results to determine which items were able to be answered internally and which are still outstanding (i.e., client follow-up required). 2. Next, prepare an email to Kim (your audit senior) by utilizing the provided Word document (Email to Kim (Senior Associate) Template). In your email, explain the attached list of questions, and request any responses she might have. In this part of the simulation, do your best to practice your professional writing and communication skills. Task 2: Initial Set of Questions Template Note to Participants: The below outline models brainstorming questions to ask (and necessary information to gather) during the audit process. The below list should exclude any information we already have on file or any information already covered by the client's internal Purchase Policy. Please feel free to add categories to the template below as you see fit while compiling your list. 1) Process \& Control Changes (Which Have Occurred Since Prior-Year Audit Period): 2) Purchase Request Portal: a) Portal Issue Reporting: b) Purchase Approval Assignments (System Maintenance): 3) Approved Vendor Listing: 4) Prior-Year Exception(s) Follow-up: 5) Approval Timing: 6) Disclosure of Issues Which Occurred During the Audit Period: 7) Internal Reviews (of Purchasing Process \& Controls) Performed During Audit Period: Note to Participants: The below outline models a professional correspondence between a subordinate and supervisor of the audit team. Be sure to outline the following in your emailed correspondence to Kim (the Audit Senior): - Purpose of email - Current task status - Information requested (including notice that the summarized questions are attached) - Desired response date and request for Audit Staff's next steps (once Kim's reply is received) Please feel free to add any additional content as necessary and remove the red text (shown below) to make your updates. Hi Kim, [Based on the directions above, update for your professional email here] Best regards, \{Your Name Here\}