AUDITING ASSIGNMENT

Auditing Assignment



Auditing Assignment

Part A

Introduction

Internal audit is an appraisal undertaking which is established as a service to the organisation. The IIA characterises the new internal Auditing explanation as "an unaligned, target assurance and conferring undertaking conceived to add value and improve an organisation's operations. It helps an organisation complete its objectives by conveying a methodical, well controlled approach to assess and advance the effectiveness of risk administration, control, and governance processes." (IIA, 1999) .This definition identifies that supplying promise services to management is broader than the more customary notion of appraisal and that today's internal auditors often assist to better administration by providing an internal conferring resource. They also add value by promoting a wide scope for internal auditing and ensuring a high reporting level to the audit committee/the board - accords with the needs of well managed organisations. The definition recognises that controls should be focused on mitigating risk and acknowledges the important role of the internal auditor in contributing to good governance.

Internal Auditing function Scope

The function of interior audit is ever-changing. The demands on all organisations to 'add-value', and to strengthen internal governance, have led to a significant shift in management expectations of internal audit role within the organisation. The interior auditor should be an individual of high intellect with consideration for humanity. With these features, the interior auditor who arrives at unbalanced components can offer remedial outlooks for lifting the institution or the business to a balanced state. The audit Role is a reflection of the needs and expectations of the organisation as a whole to survive and thrive at a particular phase in development.

Fashionista Ltd is a Melbourne-based manufacturer and retailer of fashion garments. They started business as a sole proprietorship approximately 7 years ago in 2003. It was originally a small family business founded and run by Jeremy Maxwell, but quickly grew into a much larger business. Fashionista became a publicly listed company (ASX) after a successful IPO in 2005, with a simple single entity structure (no subsidiaries).

Personnel

There are ten stores located throughout Australia and employs 12 full-time staff. Part-time and casual staff is also employed as required. Executive management includes: CEO & Managing Director (Jeremy Maxwell); Finance Director (Julie Maxwell); Financial Controller (Stuart Maxwell). Executive management receives bonuses based on sales.

Operations of the Business

All materials are sourced from China. All garments are made in China before being shipped to Australia for distribution - no manufacturing is done in Australia. Fashionista sells to both retail customers and wholesale customers.

Audit Plan

The objective of the internal audit function is to assist the Fashionista Ltd Board of Directors and management in the effective discharge of their governance responsibilities. The internal audit function is responsible for auditing department and System Administration financial, operational, and internal control activities and for providing the Directors and management with reports on the results of the audits. The audits of the Office of the business Auditor primarily focus on assessing whether processes and controls are adequate to provide reasonable assurance that resources are ...