AUDIT PROGRAM DESIGN ACC/546 Anderson, Olds, Watershed, CPAs 111 Rock St Denver, CO 80465 Larry Lancaster Apollo Shoes, Inc 100 Shoe Plaza Shoetown, ME 00001 Mr. Lancaster The audit of financial statements will assess the internal controls in use by the organization and mandated by the Sarbanes-Oxley Act (SOX) of 2002. The purpose of SOX is to incorporate corporate responsibility relating to issues of financial reporting. Section 404 focuses on the internal controls that have been implemented by the company as the internal controls are designed to protect the organizations assets from loss. The internal controls also help the organization to streamline processes so that organizational goals can be achieved with the best rate of return when using available assets. This letter serves to provide Mr. Lancaster with an overview of section 404 and other regulations that relate to the audit of internal controls as well as a synopsis of internal control risks that have and will be identified within Apollo Shoes Inc.
Each measure is taken to maintain accuracy and reliability in daily operations. Internal controls help to protect the company’s resources against theft, fraud, and errors. Internal control is like checks and balance systems to verify everything is in order. There are different levels or components of internal control. There are controls that prevent mistakes or errors from occurring.
Everyone one from their employees all the way up to upper management and partners must adhere to the code of ethics put into place at the corporation. Microsoft recognizes that they face intense competition and will continue to face harsh competition across the markets of products and services, but yet they refuse to bend any rules in order to make it to the top. Microsoft also has a code of standards for their finance division that is separate but in addition to their ethical standards. The finance code of ethics demands the executives and the employees to act in a responsible manner and to avoid conflicts of interest. It also demands the employees to abide by the laws and regulation set forth by the state and federal governments.
This is when an auditor does an actual review of the processes and the security of these processes and makes “professional recommendations” on the implementation of systems, the security of the systems and software, and even recommendations on better implementation of the database management. SAS 70 is important for all processes, electronic and manual, that may be outsourced to third party companies or may be maintained by third party software. This report provides the company as well as the third parties with a report that provides information on the internal controls that are in place and their effectiveness within both businesses. This allows the organizations to determine whether or not they need to make changes to their processes to ensure the security of the data that is being shared between parties (Hunton, 2004, p. 217). Finally, SAS 94 addresses the need for the auditor, and its firm, to fully understand the programming and technology that is being used for any given company.
These principles include Responsibilities, Public Interest, Integrity, Objectivity and Independence, Due Care, and Scope and Nature of Services. Accountants can use these principles as a guide when they encounter questionable requests from their clients, or supervisors, as well as avoiding any conflicts of interest that may arise (Mintz and Morris, 2011). It is important that accountants act ethically in reporting a company’s finances. Investors, as well as the general public rely on information when making financial decisions and whether to invest in a company. Out of the purposes of the AICPA Code of Professional Conduct, three of the most important include public interest, integrity, and due care.
NT1230 Unit 5. Problem Set 1. Unit 5 Problems A. Automated password guessing B. Windows authorization mechanism C. Passwords plus smartcards D. Stored in a digital certificate E. Standard for smart card support F. Decrypts data encrypted with a certificate G. Firewall exceptions H. Standard for fingerprint scanners and other devices I.
It is necessary to have a working knowledge of the legislation involved in business to ensure that the laws protecting consumers, suppliers & workers are implemented and complied by. Businesses are required to provide quality products & services in compliance with the law. Complete understanding and strict implementation of governing legislation will ensure that businesses are not at threat of prosecution and potential business closure, due to unforseen & unfortunate circumstances. Construct appropriate research to explain what duty of care means and how it applies in the workplace. To have a duty of care is to have a legal duty to take reasonable care to ensure the safety of others associated with the business or project.
Employees should instruct to the customers that rights about fair dealing and competition. The internal users, who use the intranet, can be expects respect, comply and understand with company. In addition, the company requires their employees to refuse conflicts of interest between company and employees personal dealings. G.M Financial has protection of company asset section which is included tangible assets and intellectual property. The employees must keep company’s tangible assets and knowledgeable things.
has a large risk in fraudulent factors due to working with many companies throughout the United States. National Commission of Fraudulent Financial Reporting is an independent private sector that investigates these behaviors. I believe and recommend that our company should have independent auditors for SEC and other regulations that apply to our business. We must also put into place education and promotional awards to reduce employee’s faulty performance. Our business ethics are honest and loyal in which we serve our employee’s with high standards.
Pass 5 There are many different legal issues and Acts that relate to the way that a business uses its information. One example of this is the Data Protection Act 1998 (DPA) which is an Act of Parliament. It controls how your personal information is used by organisations, businesses or the government. Everyone responsible for using data has to follow strict rules called ‘data protection principles’. They must make sure the information is: * used fairly and lawfully * used for limited, specifically stated purposes * used in a way that is adequate, relevant and not excessive * accurate * kept for no longer than is absolutely necessary * handled according to people’s data protection rights * kept safe and secure * not transferred outside the UK without adequate protection http://www.rac.co.uk/privacy-policy The RAC follows the rules laid out in the Data Protection Act 1998 by only using the data submitted to them by customers for the purpose that is was submitted for, for example health data for your registration under the Motability Scheme.