UDIT OF CASEY'S GENERAL STORE Date: Page < 1 of 2 Audit Client Position Company The following report contains the results of our audit of the Casey's General Store. This audit was performed in accordance with The Institute of Internal Auditors International Standards for the Professional Practice of Internal Auditing. Within six months, we will conduct a follow-up review and evaluate the corrective actions taken to resolve the findings. OBJECTIVES AND SCOPE To determine the adequacy of current policies, procedures and related internal controls for processing revenue transactions, and adherence to applicable polices and federal and state laws as they relate to revenue processing. To assess the accuracy and propriety of revenue transactions recorded in Casey's General Store funds for the period Date through Date. Additional Objectives - Please list EXECUTIVE SUMMARY - AUDIT ASSESSMENT Following are the overall assessments for each section of this report. Internal Controls Adequate - Controls reviewed were generally adequatesome corrective action is needed Financial Transactions Accurate No significant errors or other irregularities were noted ZOOM + BACKGROUND Enter background information here Page < 2 of 2 INTERNAL CONTROLS Adequate - Controls reviewed were generally adequate some corrective action is needed Use findings from part four of the assignment November 5, 2012 Findings and Action Plan 1. Finding 1 remember to include issue, cause, criteria, effect 2. Finding 2 3. Finding 3 4. Finding 4 Page 1 of 6 ZOOM + Part III Additional Information to help with the Casey Audit: In addition to the information you already know from the first two projects, here is information about a Casey's store that is to be audited: 1) Has been opened since July 15, 2012 and has never been audited before. 2) Is located in DeKalb, Illinois near the university in an area surrounded by apartments that house many university students, but have non-university tenants as well. a) Employees are mostly students b) Customers are mostly students c) There is one full-time manager with two years' experience as an assistant manager before becoming manager of this store d) There is one full-time assistant manager e) There is one part-time assistant manager (A mother that opens the store each weekday morning and works from 6-11 AM) 3) The store is opened from 6:00 am until 2 am every day 4) In addition to the normal products sold by other Casey's stores, this store sells wine and beer. 5) The store contracts with a local bakery to make pastries. The pastries are made per specifications provided by the corporate offices. The store manager is responsible for selecting the type and quantity of pastries for delivery on any given day. 6) The manager was an assistant manager in a store in Peoria store for two years before being promoted to this position. He has been the manager of the DeKalb store since June 22, 2012 (he helped prepare the store for its opening) 7) Revenue for the store was slow for the first month it was opened. Revenue has been very strong since mid-August and has been comparable with other stores in the same size communities for 2012 8) The store manager is recommending a new promotion. After 3 PM a 16 oz. fountain drink is free to anyone purchasing a sandwich. Sandwiches' cost (Casey's cost) is $1.87 and a 16 oz. drink costs is $0.47. Sandwiches cost the customer $3.99 and a drink cost the customer $0.99. The store manager says the store averages about 35 sandwiches a night (from 3 PM- 9 PM). He believes the promotion can increase the number of sandwiches sold each night to 50 sandwiches. Management wants your recommendation concerning this promotion. including internal controls. Part I General Information gathering about Convenience Stores: You have been hired by a company that owns a chain of Convenience stores (similar to 7- Eleven, Road Ranger, and Casey's General Store). This company sells gasoline, high quality fresh coffees, selected grocery items, sandwiches and some hot food, soft drinks, snacks and a variety of pastries in its Company-operated retail stores. The company's objective is to be recognized as the preferred retailer for competitively priced gasoline products and grocery and food items customers want to obtain quickly, in a clean and courteous environment. In order to perform quality audit work you must understand the industry in which the company operates.