AUDITING IN CIS ENVIRONMENT

Abogado, Derek
Bañadera, Isabelle
Bondoc, Jessica
Cloma, Rosalinda
Dom-ayan, Lyrene Joy
Fernandez, Emy Jean
Marcos, Zia
Mayrina, Riza Mae
 UNDERSTANDING THE BUSINESS

Larry’s Landscaping and Garden Supply is a sole proprietorship business engaged in service activity located at
1045 Main street Bayshore, CA.

Services offered:
 Custom Landscape Design
 Weekly gardening Service
 Installation of landscape design
 Pest control services
 Tree removal services
 Tree and shrub trimming
Clients/ Customer:
 Adam’s Candy Shop
 Andres, Cristina
 Blackwell, Edward
 Chapman, Natalie
 Cheknis, Benjamin
 Corcoran, Carol
 Crenshaw, Bob
 Crider, Craig
 Dj’s computers
 Golliday Sporting Goods
 Gregory, Dru
 Heldt, Bob
 Hughes, David
 Jasmine Park
 Ecker Design
Vendors:
• Bank of Anycity
• Bayshore Caloil Service
• Bayshore Water
• Brown Equipment Rental
• Cal Gas And Electric
• Cal Telephone
• Caloil Company
• Campion, Patrick
• Chris Markley
• City of Bayshore
• City of Middlefield
• Computer Services by DJ
• Conner Garden Supplies
• Employment Development Department
• Express Delivery Service
 RISK ASSESSMENT

Application Control Low Risk Medium Risk High Risk

Set up Users: 
Username, Password &
Choice of Access

Back-up Company 

Multi-user Mode 

Print Reports 

Income Tracker 

Report does not indicate who created it 

Importing and exporting of files 

 TEST OF CONTROL

RISK IDENTIFIED ASESSMENT CONTROLS

1. Username/Password entered is incorrect Low Risk Username, Password & Choice of Access

2. Back-up copy saved to the same hard drive that holds High Risk Back-up of Company File
the company file

3. Report don’t indicate who created it Low Risk Print Report

4. Internet Connection is needed to be able to view the Medium Risk Order Checks
selected link

4. Download and Install latest payroll update Medium Risk Process Payroll Forms
Summary of Results:

A username can be given an option to access the entire area of quickbooks or selected areas.
The Password entered must be correct to be able to open the company profile without any error. Back-
up Copy of company must be saved to a different drive or removable storage device to avoid losing the
back-up data incase of hard drive failure. The Report printed must indicate the one who created the file.
An internet connection is needed to access the link of Order Checks . In Order to process payroll forms
download and install the latest update.
ANALYTICAL PROCEDURE
 Larry’s Landscaping and Garden Supply

Balance Sheet

On January-December 2019, since this is the first year of establishment of the business, therefore it’s given that
there’s no Income should be expected in this year. Company incurred most expenses related to administration
because the company starts building its network, looking for customers.

On January- December 2020, the company incurred a huge loss due to start of higher operating expenses. The
Company Started to acquire materials and equipment for the future services that will be rendered. Handling,
Installation and Fixed Costs should also be considered as these will be part of unavoidable costs of the entity.
The entity expects more expenses but will be compensated in future professional fees but based on the huge
decrease of Income/Loss ratio, the company should consider the relevant costing to continue.
TEST OF DETAILS

TEST OF DETAILS
 SUMMARY OF FINDINGS AND RECOMMENDATION

FINDINGS RECOMMENDATION FINAL AUDIT

RECOMMENDATION

1. Report generated by the current Enhance and navigate the system to

accounting software have no provide a data of the person accountable Customize the report
indication of any trace of the in a particular transaction
person in charge who created it.

2. Back-up copy saved to the same Back up copy of company file must be
hard drive that holds the company saved to another location to avoid Use external hard drive to save the back-
file problem incase of system crash up copy of company file