An Audit Is a Process of Planning - Essay Example

An auditor selected to conduct one for an organization needs to write an audit proposal to convince the management of the importance of conducting the audit and how cost-effective they are likely to do it and achieve the organizational objectives. A proposal must be detailed and thorough and prepared ethically and professionally (Blazek, 2008).
Types of Audits applicable
Several forms of audit can be performed on Kudler fine foods. This is to ensure its smooth operations, sure financial stability, and accountability and most are, the audit to ensure that its system controls function effectively. Among the types of audits we have; financial audits, are done to ascertain the reliability, reliance, fairness, and accuracy of the financial data. Financial data that can be relied upon aids in the planning of several company activities, good financial data helps an organization in focusing on the future (Blazek, 2008). Another type of audit is the operations audit which is generally concerned with the audit of the general operations, with an operations audit there comes an aspect of evaluation and assessment of the operations of the fine food accompanied by complex operation structures incorporating the use of modern technology like the use of software in handling the assets of the restaurants.
Information systems audit entails general controls review, application controls review, and systems control review. General controls would involve an assessment of the general system applications and security. Their development is fundamental and their maintenance comes with the package of these controls. Application control revolves around the review of several application systems within the organization. The controls on inputs, processing, and outputs are extensively analyzed, examined, and then assessed to determine their effectiveness. The last on this is the systems control review is the overview of the systematic development of a new system. This runs right from the identification of the organizational objectives, then the system development of organizational needs. Lastly, there is the implementation of a system and evaluation. To crown it all Kudler fine foods can also apply the integrated audit system, which is easier to apply since it, summarizes all the above types of audits in totality (Blazek, 2008).
Audit process recommended and application
The fine foods restaurant is established in a system, which is industry specific and is on the verge of cost reduction measures. Its employees also have a vast knowledge of the systems under which the fine foods restaurant operates. Kudler fine foods have installed a software system for efficient inventory control, efficient monitoring, and control of cash as the major assets of the business venture. The system handles the effective acquisition of materials for the organization and the issuance of the same materials. The software is also used to handle the accounting needs of the organization and therefore accurate financial reporting for decision-making. To control and allocate labor costs efficiently, the software system allows for a clock card process to account for the number of labor hours worked. Dummy workers are a major problem in the majority of organizations and many organizations normally lose monetary resources through such leakages. The payroll process ensures that the right payments are made to the right people at the right time and without any loss of valuable organizational resources.
Kudler fine foods are aggressive in the implementation of modern technology to support its operations. The software system put in place by the organization is not for granted. It is because of the organization at the current economic situation, the organization is to make its operations efficient and minimizes costs. Profit maximization is another fundamental for the organization to organize for the adoption of modern technology.
Therefore, the type of audit that I would recommend for Kudler fine foods is fundamentally the information systems audit. The system would be conducted by first examining the general controls of the organization to aid in the identification of risks that would threaten the life of the business. The second part is that of going through the application controls to ensure and facilitate efficient input, processing, and output of the organization. Lastly, an information systems audit is also done to check on systems controls. This deals with the development and maintenance of new systems to replace outdated ones. In addition to the information systems audit, the firm should also conduct financial audits; this is to ensure the effective and efficient operations of the accounting software. Read More