M1OEFA — AUDITING AND ASSURANCE CASE STUDY — OBAID, LIU AND ZHANG OLZ. PLC. SOLVED AND GRADED A. NO PLAGIARISM. (11 Pages)

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M1OEFA — AUDITING AND ASSURANCE CASE STUDY — OBAID, LIU AND ZHANG (OM PM Due Date: 26th March 2018 All deliveries of items purchase are directed to the goods received bay, where a three part compu... ter input document — Good Received Note (GRN) is completed, detailing supplier, item delivered and number of units purchased. This is used as a computer input document to update the inventory recording system, and is eventually filed in the Purchasing Director's office. Any documentation that is received with a delivery is kept in the goods received bay for six months and is then destroyed. The second copy of the GRN is passed on to the invoice section showing that the inventory has been received intact. The third copy is filed in the goods received bay. The invoice, on receipt, is sent to the office junior clerk in the invoice section, where it is matched with the GRN. If the delivery details agree to the invoice details, the invoice is stamped "approved", and the GRN is destroyed. The office junior files the approved invoices until the end of the week in the top drawer of his desk and then passes them onto the accounts clerk. If an invoice can't be matched to a GRN, the junior clerk checks against the computer records to ensure that an order has been generated by the computer. If this is the case, then the invoice is authorised in the normal way. The invoices are listed, totalled, posted to the purchase ledger and filed in supplier order by the accounts clerk. The invoice list is used as a basis for raising cheques for the eventual payment of suppliers. REQUIRED Assume you are the audit senior on the audit of OLZ plc, write a report to document the system before the commencement of the audit. Your report should address the following: 1. Define Internal Controls and discuss management's responsibilities with regards to the Internal control System of a company. (30 marks) 2. List the weaknesses in the system, explaining the possible effect on the financial records of the company if the system is allowed to function in its present state. (30 marks) 3. Identify and discuss appropriate recommendations to improve the control environment and the procedures in the Purchases Systems NOT Page 14 (30 marks) MIOEFA — AUDITING AND ASSURANCE CASE STUDY — OBAID, LIU AND ZHANG (012) PLX. Due Date: 26th March 2018 Scenario based assessment — From a given case study/scenario, students are required to apply their knowledge of Audit and Internal Control to explain and evaluate concepts and make recommendations where applicable. Marks will be awarded for evidence of evaluation, critique and inquiry, according to the marks allotted for each question (see case study). (10% of the overall mark will be awarded on the basis of presentation structure and wr►tir:g style). Return of Marked Work You can expect to have marked work returned to you 2 weeks after the submission date. Feedback will be given in writing on the marked assignment via the module web where the coursework was submitted. PLAGIARISM WARNING! — Assignments should not be copied in part or in whole from any other source, except for any marked up quotations, that clearly distinguish what has been quoted from your own work. All references used must be given, and the specific page number used should also be given for any direct quotations, which should be in inverted commas. Students found copying from the internet or other sources will get zero marks and may be excluded from the university. References Aras, G., & Crowther, D. (2009). The durable corporation: strategies for sustainable development. Farnham, UK, Gower. Cormican, Kathryn, & O'sullivan, David. (2014). Auditing best practice for effective product innovation management. Kathryn Cormican, David O'Sullivan, Auditing Best Practice for Effective Product Innovation Management, Technovation, Volume 24, Issue 10, October 2004, Pages 819-829. Science Direct. http://hdl.handle.net/10379/4108. . Graham, L. (2008). Internal controls: guidance for private, government, and nonprofit entities. Hoboken, N.J., John Wiley & Sons. Hightower, R. (2009). Internal controls policies and procedures. New York, John Wiley. Khan, Y. (2012). Financial reporting and analysis. Mesa Graziano, C. D., & Holtzman, M. P. (2005). Management's reports on internal controls. Florham Park, N.J., FERF. Moeller, R. R. (2013). Executive's guide to IT governance: improving systems processes with service managment, Cobit and ITIL. Hoboken (N.J.), John Wiley. Norton, C. L., Diamond, M. A., & Pagach, D. P. (2007). Intermediate accounting: financial reporting and analysis. Boston, Houghton Mifflin. Paterson, J. C. (2015). Lean auditing: driving added value and efficiency in internal audit. http://www.books24x7.com/marc.asp?bookid=80749. Pooler, V. H., Pooler, D. J., Farney, S. D., & Pooler, V. H. (2004). Global purchasing and supply management: fulfill the vision. Boston, Mass, Kluwer Academic. Rasmussen, N. (2003). Process improvement for effective budgeting and financial reporting. Hoboken, N.J., Wiley. Schich, S., & Aydin, Y. (2014). Measurement and analysis of implicit guarantees for bank debt: OECD survey results. OECD Journal: Financial Market Trends. 2014, 39-67. Paris, OECD Publishing. http://dx.doi.org/10.1787/fmt-2014-5jxzbv3r9rf4. Sebastian, S. J. (2004). Management report: improvements needed in IRS's internal controls and accounting procedures. Washington, DC, U.S. General Accounting Office. Http://Purl.Access.Gpo.Gov/Gpo/Lps48833 Stickney, C. P., Brown, P. R., & Wahlen, J. M. (2007). Financial reporting and statement analysis: a strategic perspective. Mason, Ohio [u.a.], Thomson South-Western. Wang, I. Z., & Fargher, N. (2017). The effects of tone at the top and coordination with external auditors on internal auditors’ fraud risk assessments. Accounting & Finance. 57, 1177-1202. [Show More]

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