Requirements

The audit programs that you will develop should have two sections to facilitate a top-down audit approach:

1. Organization

COSO Evaluation

2. Purchasing

COSO Evaluation

This approach is suggested because the organizations evaluation of risk, controls, and corporate governance are the foundation for the audit of the purchasing function.

Part 1: Develop a COSO-Based Audit Program

Based on the background information provided in the case study document, develop a COSO-based audit program. The audit program should address the following COSO objectives as applicable:

1. Operational:

Effectiveness and efficiency of operations.

2. Financial:

Reliability of information.

3. Compliance:

Compliance with applicable laws and regulations.

The organization audit program should be classified to align with the five COSO components:

1. Control Environment
2. Risk Assessment
3. Control Activities
4. Monitoring
5. Information and Communication

To provide a consistent framework for comparing solutions, use the following component subsections:

Part 3: Audit Steps

List one or two audit steps that you would perform in each of the six listed sections:

Procurement Audit

Requisitioning

1. ________________________________________________________________________

________________________________________________________________________

2. ________________________________________________________________________

________________________________________________________________________