{"text_format":"3","workbook":"xls","n_sheets":3,"sheets":["Plan","Execution","Audit Recommendations"],"not_rendered":{"macros":1,"external_links":1,"defined_names":38},"read":"whole","date_system":"1900","formulas":"cached_only"}

{"sheet":"Plan","index":0,"n_rows":44,"n_cols":11,"rows_kept":44,"flags":["formulas_cached_only"]}
[null,"[Company Name]",{"$nulls":7},"List area:","Test?"]
[null,"Audit Plan Worksheet",{"$nulls":8},"Yes"]
[{"$nulls":10},"No"]
[null,"[Date]"]
[]
[null,"General controls"]
[null,"General control area","Control","Include in testing?","Testing frequency","Notes"]
[null,"Control environment","Company has a formal ethics committee and a communication policy to ensure that ethical standards are documented and communicated to all employees.","Yes","Annually","In light of recent ethical issues within the industry, pay close attention to this item."]
[null,"Control environment","Company has a formal audit committee, consisting of independent external board members.","Yes","Quarterly"]
[null,"Business planning","Management uses a formal business planning process to drive the allocation of resources and to provide direction to the business.","No"]
[null,"Business planning","Business and operating plans are reviewed on a regular basis to ensure that the company is achieving its planned objectives.","No"]
[null,"Management reporting","Management has implemented formal processes for reviewing operational data to assist with day-to-day decision-making.","No"]
[null,"Financial reporting","Systems are maintained to store all transactional and accounting data required to produce financial statements. (Note: If systems are relied upon to produce financials, consider whether information technology controls should be evaluated.)","No"]
[null,"Records retention","The company maintains a formal records retention policy, which enforces the minimum standards required by the Internal Revenue Service (IRS).","No"]
[null,"Business continuity","Management has developed a business continuity policy, which states that the procedures should be enforced if a situation were to arise where business is interrupted.","No"]
[null,"Physical security","Key documents, including employee records, checks, contracts, customer information, and other confidential materials, are kept in locked or otherwise physically secure locations.","No"]
{"$rows_empty":9}
[null,"Business process audit areas"]
[null,"Control area","Control","Include in testing?","Testing frequency","Notes"]
[null,"Procure to pay","Duties are segregated so that the person who authorizes vendor payments is not responsible for  generating purchase orders or writing checks.","Yes"]
[null,"Procure to pay","Formal purchase orders are used for every purchase.","No"]
[null,"Procure to pay","A list of authorized vendors is maintained; purchase orders can be written only against an authorized vendor.","No"]
[null,"Procure to pay","Vendors are audited on a quarterly basis to determine if conflicts of interest exist between procurement personnel and vendors.","No"]
[null,"Procure to pay","Vendor invoices are checked against signed purchase orders and delivery receipts before a check is cut.","No"]
[null,"Procure to pay","Numbered purchase orders and delivery receipts are kept in a locked area and are logged in sequential order.","No"]
[null,"Procure to pay","New sellers of the company's product are required to pass a prospective customer credit review before credit terms can be offered.","No"]
[null,"Procure to pay","A subsidiary ledger of all purchase and accounts payable transactions is maintained and is stored within a physically secure area.","No"]
[null,"Order to cash","Customer records are maintained, including a purchase history for each transaction during the audit year.","No"]
[null,"Order to cash","A cash collection log is maintained for all cash receipts. Such receipts are deposited at the end of each business day.","No"]
[null,"Order to cash","An accounts receivable ledger is kept for all customer credit purchases. An aged accounts receivable report is generated to monitor cash collections.","No"]
[null,"Book to report","A log for journal entries that affect the monthly closing process is kept to document all adjustments made for reporting purposes, such as depreciation or amortization.","No"]
[null,"Payroll","An employee roster is maintained, including status (exempt/non-exempt), pay rate, and tax jurisdiction.","No"]
[null,"Payroll","State and federal taxes are withheld properly for all payroll, based on tax jurisdiction.","No"]
[null,"Fixed assets","A log of all fixed assets, along with a depreciation schedule, is maintained in a secure location.","No"]
[null,"Inventory","An inventory valuation method (such as weighted average, FIFO, or LIFO) is used consistently throughout the audit period.","No"]
[null,"Inventory","An inventory ledger including a cost-of-goods-sold analysis should be maintained.","No"]

{"sheet":"Execution","index":1,"n_rows":44,"n_cols":11,"rows_kept":44,"flags":["formulas_cached_only"]}
[null,"[Company Name]",{"$nulls":7},"List data:","Results of test"]
[null,"Audit Worksheet",{"$nulls":8},"Effective"]
[null,"[Date]",{"$nulls":8},"Not effective"]
[{"$nulls":10},"Effective with conditions"]
[null,"General controls"]
[null,"General control area","Control","Test in current period?","Test of controls","Control evaluation","Notes on results"]
[null,"Control environment","Company has a formal ethics committee and a communication policy to ensure that ethical standards are documented and communicated to all employees.","Yes","Review minutes of board meetings to determine whether ethics board was active; review ethics policy to determine when last update was made; review employee handbook to determine if ethics policy is being communicated to employees.","Effective","Ensure that ethics policy is updated during next audit."]
[null,"Control environment","Company has a formal audit committee, consisting of independent external board members.","Yes","Review composition and background of audit committee board members to determine independence."]
[null,"Business planning","Management uses a formal business planning process to drive the allocation of resources and to provide direction to the business.","No","Review recent business plan to determine level of sign-off."]
[null,"Business planning","Business and operating plans are reviewed on a regular basis to ensure that the company is achieving its planned objectives.","No","Interview key executive and management personnel to document timing of plan reviews."]
[null,"Management reporting","Management has implemented formal processes for reviewing operational data to assist with day-to-day decision-making.","No","Interview key management personnel to document process for reviewing operational data. Review sample of reports."]
[null,"Financial reporting","Systems are maintained to store all transactional and accounting data required to produce financial statements. (Note: If systems are relied upon to produce financials, consider whether information technology controls should be evaluated.)","No","Document key systems used to support financial statements; systems to document include the general ledger and order management applications."]
[null,"Records retention","The company maintains a formal records retention policy, which enforces the minimum standards required by the Internal Revenue Service (IRS).","No","Review the retention policy; conduct a site visit to determine if historical records are stored in alignment with the retention policy."]
[null,"Business continuity","Management has developed a business continuity policy, which states that the procedures should be enforced if a situation were to arise where business is interrupted.","No","Review the business continuity plan; determine whether it is current and whether it has been tested recently. Review test results if available."]
[null,"Physical security","Key documents, including employee records, checks, contracts, customer information, and other confidential materials, are kept in locked or otherwise physically secure locations.","No","Observe the physical locations for key business-related documents to gauge whether the level of security is appropriate."]
[null,"","",0]
[null,"","",0]
[null,"","",0]
[null,"","",0]
[null,"","",0]
[null,"","",0]
[null,"","",0]
[]
[]
[null,"Business process audit areas"]
[null,"Control area","Control","Test in current year?","Test of controls","Control evaluation","Notes on results"]
[null,"Procure to pay","Duties are segregated so that the person who authorizes vendor payments is not responsible for  generating purchase orders or writing checks.","Yes","Review organizational charts; interview key personnel to understand job responsibilities. Review purchase orders matched to checks to review signatures.","Effective","Create a uniform purchase order form that needs two signatures to keep spending in check."]
[null,"Procure to pay","Formal purchase orders are used for every purchase.","No","Sample 5% of the procurement log to ensure that signed purchase orders were available and that the data matches. Randomly sample raw materials inventory, and trace back to log and purchase order(s)."]
[null,"Procure to pay","A list of authorized vendors is maintained; purchase orders can be written only against an authorized vendor.","No","Review log and determine when last updated. Conduct confirmation with sample of vendors to determine authenticity."]
[null,"Procure to pay","Vendors are audited on a quarterly basis to determine if conflicts of interest exist between procurement personnel and vendors.","No","Review results of last audit."]
[null,"Procure to pay","Vendor invoices are checked against signed purchase orders and delivery receipts before a check is cut.","No","Observe Accounts Payable during disbursement cycle. Review sample of disbursement file to determine that checks are cut only against signed purchase orders with delivery confirmation."]
[null,"Procure to pay","Numbered purchase orders and delivery receipts are kept in a locked area and are logged in sequential order.","No","Review logs and check against samples of purchase orders and receipts."]
[null,"Procure to pay","New sellers of the company's product are required to pass a prospective customer credit review before credit terms can be offered.","No","Sample customer list, and match selections to credit review analysis."]
[null,"Procure to pay","A subsidiary ledger of all purchase and accounts payable transactions is maintained and is stored within a physically secure area.","No","Review subsidiary ledgers, and match previous period totals to closed amounts on the financial statements."]
[null,"Order to cash","Customer records are maintained, including a purchase history for each transaction during the audit year.","No","Review history for a sample of customers, and match to accounts receivable and/or cash receipts records."]
[null,"Order to cash","A cash collection log is maintained for all cash receipts. Such receipts are deposited at the end of each business day.","No","Review deposit records for a sample period, and match to deposit receipts."]
[null,"Order to cash","An accounts receivable ledger is kept for all customer credit purchases. An aged accounts receivable report is generated to monitor cash collections.","No","Review subsidiary ledger and aged accounts receivable report. Tie ledger to financial statement totals for previous periods."]
[null,"Book to report","A log for journal entries that affect the monthly closing process is kept to document all adjustments made for reporting purposes, such as depreciation or amortization.","No","Review general journal entries to determine if appropriate sign-off on material transactions is present. Trace a sample of journal entries to the financial statements to ensure proper posting."]
[null,"Payroll","An employee roster is maintained, including status (exempt/non-exempt), pay rate, and tax jurisdiction.","No","Take sample of current employee information, and verify with Human Resources and with direct manager that information is kept accurately."]
[null,"Payroll","State and federal taxes are withheld properly for all payroll, based on tax jurisdiction.","No","Review tax deposits, and match to employee detail for a sample period."]
[null,"Fixed assets","A log of all fixed assets, along with a depreciation schedule, is maintained in a secure location.","No","Review fixed asset log and capital asset depreciation schedule. Ensure that totals equal amounts on financial statements for previous periods."]
[null,"Inventory","An inventory valuation method (such as weighted average, FIFO, or LIFO) is used consistently throughout the audit period.","No","Discuss with management the valuation method used, to determine appropriateness. Note if any changes in valuation method were used, and if so, obtain justification from management."]
[null,"Inventory","An inventory ledger including a cost-of-goods-sold analysis should be maintained.","No","Review ledger and cost-of-goods-sold analysis for period, and tie to financial statement results."]
[null,"","",0]

{"sheet":"Audit Recommendations","index":2,"n_rows":14,"n_cols":2,"rows_kept":14,"flags":["formulas_cached_only"]}
[null,"[Company Name]"]
[null,"Audit Plan Recommendations"]
[null,"[Date]"]
[]
[null,"General controls"]
[null,"Audit recommendations"]
[]
[]
[]
[]
[]
[]
[null,"Business process audit areas"]
[null,"Audit recommendations"]