qwertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfgh jklzxcvbnmqwertyuiopasdfghjklzxcvb nmqwertyuiopasdfghjklzxcvbnmqwer Auditing final project tyuiopasdfghjklzxcvbnmqwertyuiopas Grambling State University dfghjklzxcvbnmqwertyuiopasdfghjklzx cvbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyuio pasdfghjklzxcvbnmqwertyuiopasdfghj

klzxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwerty uiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmrty uiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxc

12/8/2011

Genell Beausoleil

ASSIGNMENT 1 On Site Review at a School Cafeteria

ARRIVE AT LOCATIONSCHOOL

SIGN IN TO MAIN OFFICE

REQUEST INFORMATION FROM THE MANAGER

INSTRUCTION SHEET FOOD PRODUCTION RECORD SERVICE TEMPERATURE LOG

EDIT CHECK REPORT REVIEW AND DETERMINE COMPLIANCE MEAL COUNT REPORT BANK RECONCILIATION M-2 DEPOSIT ACCOUNT M-3 CASHIER ACCOUNT REVIEW OF APPLICATIONS QUANTITY SALES FORM

OBSERVATION OF SERVING LINE

ASSIGNMENT 2
A) Pre-numbered Tickets should contain: Date of event Name of event Organization holding the event (optional) Location Price Seat or Section number B) Engagement Letter: December 8th, 2011 Mr. Jeff Brickly, Controller Grambling State University 403 Main Street Grambling, Louisiana 71245 Dear Mr. Brickly: This letter is to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services we will provide. We will audit the Universitys consolidated balance sheet as of December 31st, 2011 and the related consolidated statements of operations, retained earnings (deficit), and cash flows for the year then ended. The objective of our audit is the expression of an opinion about whether your consolidated financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit will be conducted in accordance with auditing standards generally accepted in the United States and will include tests of your accounting records and other procedures we consider necessary to enable us to express such an opinion. If our opinion is other than unqualified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct

confirmation of receivables and payables and certain other assets and liabilities by correspondence with selected customers, creditors, and financial institutions. We will conduct the audit in accordance with generally accepted auditing standards. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Because an audit is designed to provide reasonable, but not absolute, assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or illegal acts, may exist and not be detected by us. In addition, an audit is not designed to detect immaterial errors, fraud, or other illegal acts or illegal acts that do not have a direct effect on the financial statements. Our engagement cannot, therefore, be relied upon to disclose errors, fraud, or other illegal acts that may exist. However, we will inform you of any material errors that come to our attention and any fraud that comes to our attention. Our audit will include obtaining an understanding of your internal controls sufficient to plan the audit and to determine the nature, timing, and extent of audit procedures to be performed. An audit is not designed to provide assurance on internal controls or to identify reportable conditions, that is, significant deficiencies or material weaknesses in the design or operation of internal control. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the Company involving (a) management (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements. You are responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. Our fees for this engagement are not contingent on the results of our services. Rather, our fees for this engagement will be based on our standard hourly rates plus additional expenses. We estimate that our fee for these services will range from approximately $4000 to $7000. If, after full consideration and consultation with counsel if so desired, you agree that the foregoing terms shall govern this engagement, please sign this letter in the space provided and return the original signed letter to me, keeping a fully-executed copy for your records. Very truly yours,

Genell Beausoleil Accountant

Accepted by: _____________________________________ Date: ___________

ASSIGNMENT 3
A. Describe the two purposes of the auditors consideration of a clients internal control. As an entity's operations and systems become more complex and sophisticated, it becomes more likely that the auditor would need to increase his or her understanding of the internal control components to obtain the understanding necessary to design tests of controls. In making a judgment about the understanding of internal control necessary to plan the audit, the auditor considers the knowledge obtained from other sources about the types of misstatement that could occur, the risk that such misstatements may occur, and the factors that influence the design of tests of controls, when applicable, and substantive tests

B. Limitations of a good internal control: Internal control, no matter how well designed and operated, can provide only reasonable assurance of achieving an entity's control objectives. These include the realities that human judgment in decision-making can be faulty and that breakdowns in internal control can occur because of human failures such as simple errors or mistakes. Errors also may occur in the use of information produced by IT. For example, automated controls may be designed to report transactions over a specified dollar limit for management review, but individuals responsible for conducting the review may not understand the purpose of such reports and, accordingly, may fail to review them or investigate unusual items.

Additionally, controls, whether manual or automated, can be circumvented by the collusion of two or more people or inappropriate management override of internal control.

1. 2) When considering a clients internal control, the auditor focus on its various characteristics. For each of the following characteristics indicate the auditors responsibility under generally accepted auditing standards and the procedure used to meet that responsibility. a. The design of internal control- performing procedures to understand the design of controls relevant to an audit of financial statements and determining whether they have been placed in operation.

b. Controls have been implemented (Placed in operation) - In obtaining knowledge about whether controls have been placed in operation, the auditor determines that the entity is using them.

c. The operating effectiveness of controls - Operating effectiveness is concerned with how the control (whether manual or automated) was applied, the consistency with which it was applied, and by whom it was applied. The auditor determines whether controls have been placed in operation as part of the understanding of internal control necessary to plan the audit. The auditor evaluates the operating effectiveness of controls as part of assessing control risk for e.g. those which are likely to prevent or detect material misstatement. These tests ordinarily include procedures such as inquiries of appropriate entity personnel; inspection of documents, reports, or electronic files, indicating performance of the control; observation of the application of the control; and performance of the application of the control by the auditor.