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Please USE WIR framwork control for AUDIT ( Weakness what is wrong with the process? Look for 4-5 issues. For example: lack of segregation of

Please USE WIR framwork control for AUDIT (

Weakness what is wrong with the process? Look for 4-5 issues. For example: lack of segregation of duties, no approvals, cheques arent signed, lack of IT controls (eg passwords arent changed frequently), no disaster recovery plan. Every case will have different issues, find these specific issues in the appendix. For this part, write only 1 sentence, only the specific case fact.

Implication how does it impact the company? Write how the users, operations, and financials are impacted. Make sure to answer the so what question to get depth (C). Write 2-3 sentences in this part.

Recommendation what can the company do to fix the weakness? Write 1-2 actionable items, only 1-2 sentences in this part.)

Provide 3 substantive audit procedures chosen among the following topics: free meal, lawsuit, inventory, delivery services, payroll or selection of new suppliers. You must provide 3 different procedures on 3 different accounts.

Exhibit 1

Quon Queso Inc.

Statement of Earnings

For the period ended December 31, 2016

Revenue

547,500

COGS

191,625

Gross Profit

355,875

Expenses

Advertising Expense

27,375

Insurance Expense

2,500

Property Taxes

5,000

General and administrative expenses

16,425

Salary

202,575

Depreciation expense

28,900

EBIT

73,100

Interest expense

13,232

EBT

59,868

Income Tax Expense

17,960

Net Income

41,907

Quon Queso Inc.

Statement of Retained Earnings

For the period ended December 31, 2016

Balance, December 31, 2015

0

Net profit

41,907

Dividends

25,000

Balance, December 31, 2016

16,907

Exhibit 1 (continued)

Quon Queso Inc. Balance Sheet

As at December 31, 2016

Assets

Current

Cash

11,232

Inventory

20,000

Non-Current

Bulding, net

393,100

Equipment, net

108,000

Total

532,332

Liabilities

Current

Accounts payable

5,000

Short-term debt

20,171

Non-current

Longterm Debt

410,253

Share Holders Equity

Common Shares

80,000

R.E

16,907

Total L + S.E

532,332

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