Audit Paper

branch A - ANSWER BOTH QUESTIONS IN THIS SECTION Q1 You atomic number 18 the auditor of orchard apple tree Co, a small firm manufacturing hawk machines. The assumeting even scheme is put down on the permanent load as follows: Wages be based on hours worked which be recorded on clock card. These be kept at the manufacturing plant gate and postulateed each week 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 increases in rates of pay. Miss Lampard alters the payroll outdo file for these changes before commencing the payroll run. The software produces the payroll, payslips and a scrub analysis. The payroll is forwarded to the financial director Mr Gerard, who signs a cheque for put one over payment, and enters the payroll total in the nominal ledger. The wages clerks perk up 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 orchard apple tree Co which should : ! ? Identify 5 weaknesses in the present system ? fate the implications of such weaknesses ? Make practical recommendations for improvement (15 marks) b) roll up a programme of substantive tests to quantify the burden of the weaknesses identified above. ( 5 marks) ( Total 20 marks) Q2 In the charge of the audit canvas of the financial statements of Apricot Co,...If you want to get a teeming essay, order it on our website: OrderCustomPaper.com

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