PRACTICAL INTERNAL AUDIT REPORT (Question)

Practical Internal Audit Reports are as follows.

Question 1

ABZ Co is new company, so owner of company is not sure about payment process, so request you are accountant who will be promoted as internal auditor when company grows to list and explain payment process.

Currently ABZ will pay its supplier, BMM Co for 100 Phones (inventories) of $50,000.

Required:

You are required to draft payment process for owner.

Question 2

You are required to check samples (50% of 1,000 PVs=500 PVs) on payment vouchers from October 1, 2014 through October 31, 2016 There are payments such as PV10160149 and PV10160950 without approval or check by head of finance department.

As part of audit report, you are required to draft the following contents for each issue:

1. Deficiency
2. Implication/impact
3. Recommendation

Question 3

BNN Co faces problem of managing fixed assets, so fixed assets seem messy and may lose.

Now management of company requests new internal auditors to check fixed assets and make report for any problems.

After you checked fixed assets, you found the following issues:

• No list of list of assets
• Users of fixed assets are not assigned clearly
• No coding (tagging) of fixed assets

Required:

As part of audit report, you are required to draft the following contents for each issue:

1. Deficiency
2. Implication
3. Recommendation

 Question 4

TOP One Trading Company buys and sells three major products such as computers, LCDs and Printers.

Recently company noted that a few computers are not included in list of inventory record. Company suspects that other stocks may not include in list of inventory record.

After you made procedures for auditing inventory to make sure physical inventories are completeness with list of inventory records, you found three LCDS and 5 printers are excluded list of inventory record.

Required:

As part of audit report, you are required to draft the following contents:

1. Deficiency
2. Implication
3. Recommendation

 Question 5

Because BBA Company is small company and trades with small suppliers too, so owner decided that warehouse staff does not need to make goods received note when received goods from suppliers because suppliers do not have delivery notes (have only invoices). Owner requires warehouse staff signs on invoices, but recently A few Original invoices from supplier without signature by warehouse staff.

Required:

As part of audit report, you are required to draft the following contents:

1. Deficiency
2. Implication
3. Recommendation