Audit Paper

class 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 matter musical arrangement is put down on the permanent load as follows: Wages be based on hours worked which be recorded on clock tease. These atomic number 18 kept at the mill gate and postulateed each workweek by the foreman who checks the hours shown, signs the clock-cards, and passes them to the takings 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 periodical payroll using a personal data central processing unit and Sage software. The foreman rings Miss Lampard on Wednesday, the morning time of the payroll preparation to inform her of any starters or leavers during the week and any increas es in rates of pay. Miss Lampard alters the payroll disbursal file for these changes before commencing the payroll run. The software produces the payroll, payslips and a strickle analysis. The payroll is forwarded to the financial director Mr Gerard, who signs a cheque for draw remuneration, and enters the payroll total in the nominal ledger. The wages clerks realize 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 s! hould : ? Identify 5 weaknesses in the present system ? fate the implications of such weaknesses ? Make practical recommendations for improvement (15 marks) b) incline up a programme of substantive tests to quantify the number of the weaknesses identified above. ( 5 marks) ( Total 20 marks) Q2 In the mannikin of the audit canvas of the financial statements of Apricot Co,...If you want to channel a teeming essay, order it on our website: OrderCustomPaper.com

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