Henrico[1]

HENRICO RETAIL, INC. Understanding the IT Accounting System and Identifying Audit Evidence for Retail Sales Erika Iniguez - Cesar Romo - Mohamed Qadri - Bao Hoang

Auditing in the Retail Industry ,[object Object],[object Object],[object Object],[object Object]

Challenges with Audit Systems in Retail ,[object Object],[object Object],[object Object],[object Object]

Point of Sale Consolidated Sales Accounts

During this scan, the following are calculated by the computer: - Product code - Quantity - Total price - Tax

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object]

Plan and Design an Audit Approach

Two things to consider… ,[object Object],[object Object]

Know the client’s strategies…

Understand and Assess Internal Control and Risks

Assess Risk of Material Misstatements

Three categories of Assertion ,[object Object],[object Object],[object Object],TRANSACTIONS

Common Assertions within the three categories ,[object Object],[object Object],[object Object]

Existence/Occurrence Assertion ,[object Object],SALES ACCOUNT

Strategy for Auditing Existence Assertion for Henrico Sales ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Is IT support necessary? ,[object Object],[object Object]

Examining sales transaction for ONE store ,[object Object],[object Object],[object Object],[object Object]

Why these sources? ,[object Object],[object Object],[object Object],[object Object]

Evidence to examine for each transaction ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Management Assertions Assertions About Classes of Transactions and events Assertions on Account Balances Assertions on Presentations and Disclosures Occurrence Existence Occurrence and Rights and Obligations Completeness Completeness Completeness Accuracy Valuation and Allocation Accuracy and Valuation Classification Classification Cutoff Rights and Obligations

Assertions on Account Balances ,[object Object],[object Object],[object Object]

Valuation and Allocation of Sales ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Valuation and Allocation of Sales ,[object Object],[object Object],[object Object]

What is Accruracy and Valuation? ,[object Object],[object Object]

Accuracy and Valuation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

IT System Auditors For Henrico Retail ,Inc ,[object Object],[object Object],[object Object],[object Object]

IT Evaluation on Henrico, Inc ,[object Object],[object Object],[object Object],[object Object],[object Object]

Control Deficiencies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Management & Internal Control ,[object Object],[object Object],[object Object]

Audit Objective #3 ,[object Object],[object Object],[object Object],[object Object],[object Object]

Phase IV :Complete the Audit and Issue an Audit Report ,[object Object],[object Object],[object Object],[object Object]

Henrico[1]

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Henrico[1]