Audit Paper

voice A - ANSWER BOTH QUESTIONS IN THIS SECTION Q1 You atomic number 18 the auditor of orchard orchard apple tree tree Co, a small firm manufacturing hawk machines. The way out remains is enter on the permanent load as follows: Wages be based on hours worked which be recorded on clock card game. These be kept at the grinder gate and postulateed each hebdomad by the foreman who checks the hours shown, signs the clock-cards, and passes them to the return clerks Mrs Cole and lady friend Lampard. Mrs Cole calculates the descend hours worked and ensures the cards have been initialled by the foreman, Mr Neville. The clock-cards are then passed to Miss Lampard who prepares the hebdomadary payroll using a personal data central processor and Sage software. The foreman rings Miss Lampard on Wednesday, the aurora of the payroll preparation to inform her of any starters or leavers during the week and any increases in rates of pay. Miss Lampard al ters the payroll overcome file for these changes before commencing the payroll run. The software produces the payroll, payslips and a arise analysis. The payroll is forwarded to the financial director Mr Gerard, who signs a cheque for shit pay, and enters the payroll total in the nominal ledger. The wages clerks store the cash from the bank and prepare the pay-packets from the information on the payslips. The wages payout is performed in the factory by the foreman, Mr Neville, on Thursday mornings.

You are required to: a) Draft a management letter to the directors of apple Co which should : ? Identify 5 weaknesses in the! present system ? fate the implications of such weaknesses ? Make practical recommendations for improvement (15 marks) b) dumbfound up a programme of substantive tests to quantify the force of the weaknesses identified above. ( 5 marks) ( Total 20 marks) Q2 In the lean of the audit canvas of the financial statements of Apricot Co,...If you want to secure a teeming essay, order it on our website: OrderCustomPaper.com

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