1997 AGN APR 01 I08 - Laserfiche WebLink

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r� . ... . .. . .... _ .. . . .. .. . . ... . .... ... _ .. .. . . . . ... . .. . . ... � I I . .. . .... L�+ai�CEq� CEA'T/F1ED . ' � � �7L#�� O[ '.'� PL+BG/C � .. _ LungharU \ACCWNTAIYTS procedur�s was applied, #he cansistency with ivhich it was applied during the audit " pei �fld, .and b� zvhaIii it was applied. '�'c� achieve this goal, we draw sampi�s in the area of disbursements, receipts and payroll. 'The populations zve will use are `the total n�nberofwarrants-issued during the fiscal year for disbursements, the total number � of receipts issued during the yeai for receipts, and th� total nurnber of payroll checks issued ciuring the year for payroll. 'I'he sample nnits are individual warrants; receipts , and payroll ch�cks. T�iey will �� sele�ted based on ti�e press number on thase . documents: �ac3� do�um�nt being selected will be #ested for various a#tribut�s that _�. ` ar� d�signed to:verify ct�mpliance with differ�nt aspects of internal controls. In the area of disbursement checks, we obtain the �ancel�d checks and check for agreement of date, amoun# and payee to the warrant register. We obtain the suppflrting warrant package for eac� check'selected and tests for attributes such as invaic� amount an�i ! footing; purchase ord�r; approval af ii�voice, contract and bidding p�ocedure when aPpIicable;, as weil as proper coding to the cc�rrect account: and ev�ntual posting #o the : general ledger In the area of payroll, for each payrall check sel�cted, cue again verify the date, arr�ount and payee to th� payroll register. �Ve wiIl pulI �ach personnel fiie for those select�d ernpl�yees, and te�t fc�r attributes such a� correct rat� c�f pay, �PProvaI of rate of pa3T; computatiori of regular and �vertime pay, time card hours aa ees with hours �aid, si�natures on the time card, vacation.and siek hours posted cflnectly, and finally, coding �f payr�ll charg�s xo the correct department or costs center, and th� eventual postin� of payrflll distribution to the general ledgei. For recea�ts, �ttn�utes we test fc�r incl�des timely deposits, intact depc�sits, computation of receipts, and approval of f�es. �inally, each r�ceipts wilI be tested for coding to ti�e proper rev�nue accc�unts and pt�sting to the general �eclg�r. 3: Compn�er .Audit -(Jur traditional aPProach i� to "audit around" the computer which : means #hat we venfy tiutp�t by agr��ing it, 'through our audit tests, with corresp�nding sflurce input iransactians. We do n�t use audit software that runs through the City's -. computer system, such as a�te�t deck. �vVe do u5e porta�l� computers in th� field, with spreaiish�et software, to the e�ent flf financial statement preparatic�n and analytical procedures. L-ike other aspects of the internal contr�l structure, comput�r conirols a:re documented in .�nr memflranda ancl questionnair�s. We will , cflnsider whether specialized skills are ne�ded to consider the eff�ct of computer proc�ssing on the,audit; to unrierstand the internal controi s�ructure policies and proc�rlures, a�- ta design `and perform sudit procedures, fihe decision:to use a computer speci�list in a�zdit pianning is a matter of o�r prof�ssional judgement. We vvill consider t%e complexity of the computer system and assess whether we can identify the types c�f misstate�nents that might occur. Generally, computer specialist are nflt needed on ti�e audit of a local . i 21 - - _ _ I , , � _ , , r � , _ , �