The managers are responsible for the financial statements and the forecasts and budgets. Because of this, management will require an audit of their financial projections, an SAS 94 audit of their computer systems, and a data analytical review of the financial statements. Each of the business processes will require a findings and recommendations report. This report will not give the opinion of the auditor but rather will document the facts associated with the systems in place in each department. Even-though the systems in place at Kudler are not terribly advanced, they are somewhat complex and will need an expert IT auditor to present the facts and prepare the reports.
Conducting the Audits
The audit format which will be used is called the IT Audit Life Cycle. All IT audits go through the IT audit life cycle. The IT audit life cycle has seven steps which help ensure that the auditor remains on track with the audit. The seven steps include planning, risk assessment, development of the audit program, gathering evidence, forming conclusions, preparing the audit opinion, and following up (Hunton, 2004).
Step one, planning, is considered to be the general plan of the audit. This includes identifying the risks, familiarizing with the client and becoming aware of the environment. Risk assessment is step two. To be successful with this step, the auditor