Audit committee and assurance engagement

Assignment Help Auditing
Reference no: EM133452

Question :

Conducting the Assurance Engagement

AVF Inc. manufactures various lines of packaging equipment. The company considers product reliability and outstanding customer service to be critical to its success. The customer service department is responsible for:

  • Give prospective customers with product information
  • Monitoring spare parts accessibility
  • Providing equipment operating and maintenance information to customers
  • Delivering and developing customer training courses
  • Responding to customer complaints and making service calls
  • Handling customer warranty claims
  • Maintaining good customer relations

The company currently made a sizable investment to upgrade its customer service department computer system. The upgrade is expected to enhance customer satisfaction and operational efficiency. The outputs of the new system add management reports used to monitor performance in the areas listed above. The audit committee has asked the internal audit function to perform an audit of the operational effectiveness and efficiency of the customer service department that covers the subsequent areas:

  • Security of assets adding information
  • Compliance with applicable laws and company policies
  • Reliability of financial records
  • Usefulness of performing assigned responsibilities
  • Valuation of spare parts inventory

Required: Show why each of the five areas specified by the audit committee may or may not be suitable for this assurance engagement.

Reference no: EM133452

Questions Cloud

Define a recursive procedure : Define a recursive procedure
Determine the information contained in internal audit report : Determine the information contained in internal audit report
Generate an er model : Generate an ER model
The role of internal audit in the organization : Do you agree with the CFO? If so describe how SOX 404 and CEO/CFO certification removes the need for an internal audit function. If you don't agree, describe what an internal audit function adds beyond SOX 404 and CEO/CFO certification.
Audit committee and assurance engagement : Show why each of the five areas specified by the audit committee may or may not be suitable for this assurance engagement.
Purchasing strategy and strategic purchasing : purchasing strategy and strategic purchasing, corporate and competitive strategie
Creating a program that creates a single tips object : Creating a program that creates a single Tips object
Determine highest distance : Determine highest distance
A statistical conclusion and audit decision : A statistical conclusion, and the audit decision you could make based on the quantitative sample results.

Reviews

Write a Review

 

Auditing Questions & Answers

  Risk in the audit plan

Classify the main account or group of accounts affected by this risk in the audit plan.

  Explain the control of authorization of credit

Prepared in good form a working paper and conclude whether the auditor can rely on the control of authorization of credit. Your working paper could add the sampling steps identified in the textbook for tests of controls.

  Determine ordering cost per order

Determine ordering cost per order

  Audit theory and assurance

A Business report identifying auditing procedures and practices

  Audit financial data

As a consequence an accounts payable clerk and financial accountant were made redundant from the business during the year.

  Internal audit

Describe and evaluate this type of internal audit. What types of organisation would it be most useful for?

  Audited financial statements covered by an auditors report

Show a qualified opinion on the financial statements because of the client imposed scope limitation.

  Identify principal audit risk

To identify principal audit risk and corresponding audit procedures

  Show the cash flows from investing and financing activities

Show the cash flows from investing and financing activities sections of the cash flows statement.

  Prepare a memo on the state of the company''s industry

Prepare a memo on the 'state of the company's industry' and associated risk factors.

  National health reform

Explain the role of the following three 'bodies' in National Health Reform

  Evaluate an annual report of a publicly held corporation

Evaluate an annual report of a publicly held corporation of your selection on the internet (not the General Electric annual report).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd