Audit Case study answer !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! PDF

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this might help u answer one of the audit case study, and I don't have the case study :(...

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Answer 1: These are the four things that should be included as part of the audit documentation during the Yorkshire banking cases, for example, 1. 2. 3. 4.

Audit programs, Analyses, issues memoranda, Summaries of significant findings or issues, Checklists, abstracts or copies of important documents, correspondence (including e-mail) concerning significant findings or issues, and schedules of the work the auditor performed.

Answer 2: Risk Assessment is a key part of Auditing Process. It may includes: 1. Obtaining an understanding of bank for understanding bank's internal control to evaluate whether with the oversight of those charged with governance, bank have created and maintained a culture of honest and ethical behavior, as well as assessing whether the control environment contains any deficiencies in established processes. 2. Inquiries with management help to get an understanding of internal controls, we also need to see examples of these being performed. 3. Walkthroughs are to be performed, with the help of bank personnel, to observe segregation of duties along with inspecting certain documents (invoices, purchase orders, etc.) that are used as supporting evidence for the operation of key controls that impact financial reporting. 4. Analytical procedures are also performed. Answer 3. In 1992, the committee of sponsoring organizations of the Tread way Commission(COSO) issued a landmark report on internal control. The report identified five key components of effective internal controls. Banks and other financial institutions can and should implement these for their ATM operations. The components are:1.Control environment - this component serves as the basis for the other components; since it underscores Board and senior management's understanding of the importance of controls. Risk assessment - this component is used to identify the risks that can deter the bank or financial institution from achieving its objectives. This component helps to determine how risks should be managed and what controls are needed. Control activities - this component includes the policies and procedures that are in place to safeguard against the risks identified from the risk assessment. Information and communication - this component includes all the accounting, information, and communication systems that would assist all relevant parties (the Board, management, auditors, customers, and other stakeholders) in determining if the banks or other financial institutions are successfully managing risks. Monitoring - this component allows to evaluate internal controls and determine if the controls are effective or ineffective. In other words, if current internal controls are sufficient in mitigating risk, or if the internal control allow for fraud Answer 4:

Audit procedures that may be applied to ATM operations are as follows: 

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Control environment- The board should periodically review policies and procedures to ensure that proper controls have been implemented. There should also be a system in place to monitor if bank employees are complying with the set policies and procedures with instances of non compliance being reported to the Board. Incidents of noncompliance should have some follow-up and testing for compliance. Risk assessment- An evaluation of risks and control issues should accompany a bank's ATM operations. Internal audit personnel should always be involved in the risk assessment process for ATM operations. Technology is an integral part of ATM operations and should also be assessed for risk factors and control issues. Control activities- Independent verification and reconciliations are integral to the integrity of audit procedures for ATM operations. Segregation of duties and dual controls are crucial to any operation that involves the handling of bank assets, particularly cash. More important than segregation and dual controls is having a system in place that ensures that personnel are complying with the policies and procedures regarding segregation of duties and dual controls. A vacation policy in place for employees that mandate at least one consecutive week's absence from duties is necessary for critical employees involved in ATM operations.

if any, of these procedures might have resulted in the discovery of the embezzlement scheme at Yorkshire bank branch then it can be taken care of immediately. Answer 5: the analytical procedures are performed during the completion phase of an audit. The primary purposes is to give the auditor one last objective look at the financial statements and see if there are any possible places for misstatements and to assess whether they are consistent with the auditor's understanding of the bank. Answer 6: Auditors should deliver professional, high quality audits through: 1. a strong internal culture focused on quality audits and professional skepticism. 2. applying appropriate resources, experience and expertise to audits. 3. effective internal supervision and review. 4. robust accountability mechanisms. 5. accepting and addressing findings from audit inspections, including findings on asset values and revenue recognition....