Steps in Preliminary Survey 2014 PDF

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Steps in Preliminary Survey 2014...

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PRELIMINARY SURVEY PROJECT 2014 Preliminary Survey – to make the auditor familiar with area to be audited, part of the planning phase. Assignment – select an organization, conduct a walkthrough, an interview, collect documentation, and prepare a report detailing your assessment of the entity to be audited including your recommendations for performing the audit (e.g. what are the material, high risk areas that you have identified that you would recommend to be audited in order of priority and in some organized manner). See sample headings for report at the end of this assignment sheet. Steps in Preliminary Survey 1. 2. 3. 4.

Research what a preliminary survey is. Identify an organization on which to perform the survey. Perform very brief background research. Search on computer Before you visit: prepare a list of at least 10 probable business objectives for the organization. Then for each business objective, list KPIs (key performance indicators) that you believe the business would measure to make sure they are on track. Prepare this in table form to insert into your report – just need three columns (number, objective, and KPI). After your visit, update the table. 5. Arrange an on-site walkthrough and interview - DON’T WAIT UNTIL THE LAST MINUTE AS I CAN GIVE YOU A LIST OF THE MANY WHO DID AND HAD THEIR CONTACTS BAIL OUT - MOST OF THEM GOT A GRADE LOWER IN THE COURSE. This is a mandatory project to pass the course and is worth the most points out of all the assignments. Four or five pages are not enough. 6. Perform a more thorough background research – library, internet, or thinking about what is important to that type of organization (number 4 will help you do that). 7. Prepare interview questionnaire to list topics to discuss (questions to ask). 8. Prepare list of desired documentation – you must have documentation at the end of your report in the appendix. 9. Prepare an outline of preliminary survey report and compare with classmates – don’t copy, but keep each other on track. If you are an international student, do not do this with another international student as you both will probably be wrong. 10. Ask questions during class - auditors ask questions. 11. Have a backup plan ready to go to another entity. 12. Once all the preparation is ready, set the date and time for the meeting well ahead of the due date, just in case you get bounced and have to get a new organization. 13. Show up on time, ask a lot of questions – may want to take questionnaire. 14. Ask specific questions such as “how many employees work here etc?” as some description should be given about the organization. 15. Ask open-ended questions such as “please give me an overview of the process in this department” or what do you consider your companies biggest risks.

16. Record the answers as you ask and type up later – make sure to do this when the information is fresh in your mind – if you wait a day or two, you will forget. 17. Do not ask too many yes or no questions as they get a quick answer with not much else. 18. Gather evidence – observation, inquiry, recalculation, analytical review, confirmation, scanning, and examining documents. These are the seven evidence gathering procedures which will be tested during the term.

Types of evidence to include in the appendix – general categories in number 18. Specific examples are as follows:         

Organization chart – you can make if they don’t have one Process flow chart Floor plan – you can draw up Pictures – you can take Financial statements and other reports Operating reports Schedules Employee manuals Internet pages, advertisements, menus, source documents, codes of ethics, missions, values, organization descriptions, etc.

Note: If they will not give you any documents, you must create some on your own. Visual: Record your visual impressions during your visit (if it does not interrupt the flow, or as soon as possible thereafter – it is surprising how much is forgotten even one-half day later). Write notes in your car in the parking lot right after your visit. Format: Generally, the document should be in narrative (not outline) form with the report at the beginning, then an appendix with the documentation provided in the appendix.

FORMAT - GENERAL GUIDANCE (HEADINGS - MUST USE THESE MAJOR HEADINGS) PRELIMINARY AUDIT SURVEY OF XYZ (THE TITLE)

PRELIMINARY SURVEY Define the “preliminary survey” in a paragraph. Approximate length: 1 short paragraph INTRODUCTION Write a brief introduction to the organization of this preliminary survey report. This is not an introduction to the business – that is in the overview. Approximate length: 1 paragraph

OVERVIEW OF ORGANIZATION What is the history of the organization, specific location, and ownership? What are the primary functions, areas of operation, sources of revenue, resources, people, places, and structure? Include the 3 column table in this section consisting of Number, Business Objective, and KPI at the end of this section. Approximate length: 3 to 5 paragraphs plus the table.

NEXT HEADINGS (MAJOR RISKS – USE SUB-HEADINGS WITH TITLES OF EACH RISK) – Major headings are always centered and all caps

FINANCIAL (EXAMPLE OF A SUB-HEADING - ALWAYS NEED TWO SUBS) These should be the major areas that you have identified and are described herein so the audit manager (me) will have a good idea of what is important and why you think are important. Each of these major areas should have its own sub-heading with the last heading mentioning other functions of less importance. This section is very important. You should identify a minimum of close to ten major risks - brainstorm and list as many possibilities as you can think of before you even visit. The lack of development and thought about theses risks is the second highest reason for getting a lower grade and having to resubmit on this project. CUSTOMER SERVICE

RECOMMENDATIONS – USE THE SAME SUBHEADINGS AS WERE USED IN THE RISKS – THEY SHOULD BE EXACTLY THE SAME. FINANCE

CUSTOMER SERVICE With the last section, this section is very important because it provides your recommendations to your boss, the audit manager (me) for doing the audit. It should identify the important (high risk) material areas that you recommend to be audited and the justification for each area recommended for auditing. It should include how much time should be spent on the audit in total (assume two weeks) and how much time on each specific area (work hours). This is the section that is most often improperly prepared. These are planning recommendation to your audit manager for sending auditors out to perform audit procedures, not recommendations to management to an audit that you did and were not supposed to do. This mistake is the most frequent reason for having to redo your preliminary survey and getting a lower grade. You did not do an audit, you gathered evidence to be able to plan for doing an audit.

SUMMARY This should be a brief summary of the report and may include a conclusion

APPENDICES May want a list of the documents in the appendix first page, and then number each appendix. This list should be on a separate page after your report write-up.    

Remember TNR 12 font Spell check everything, make sure you turn on all CAPS spell check Do not have any headings at the bottom of a page without text (-5 percent for each incident) – look at print preview before printing, but look at it after printing too. See all the formatting instructions in the syllabus....