Ask a question from expert

Ask now

Auditing Theory and Practice : Case Study

13 Pages3740 Words164 Views
   

Added on  2020-07-23

Auditing Theory and Practice : Case Study

   Added on 2020-07-23

BookmarkShareRelated Documents
AUDITING THEORY ANDPRACTICE
Auditing Theory and Practice : Case Study_1
Table of ContentsINTRODUCTION...........................................................................................................................11........................................................................................................................................................1A- Identifying audit risks associated with the installation of the new IT system for patientrevenue........................................................................................................................................1B- Commenting on the audit strategy which is likely to be adopted for the audit of patientrevenue for garden nursing home................................................................................................22........................................................................................................................................................3A- Discussing Susan's comment of already started audit and evidences which are gathered sofar................................................................................................................................................3B- Explaining the work done with the spreadsheets of financial data and analysing therelevance of work to all stages of the audit. ...............................................................................4C- Explaining the need of taking and making notes for the things while touring clientpremises.......................................................................................................................................43........................................................................................................................................................5A- Explaining responsibilities of an audit partner with respect to the cafeteria fire...................5B- Explaining this event to be handled in the financial report and the audit report...................6C- Going concern issues for MSHG and what are its mitigating circumstances........................6D- Recommending the issue to be handled in the financial report and audit report. .................7CONCLUSION ...............................................................................................................................8REFERENCES ...............................................................................................................................9
Auditing Theory and Practice : Case Study_2
INTRODUCTIONAuditing is the process of critically checking and examining the process or quality systemfollowed in the organisation. There are many theories which can make process of auditingeffective. Garden nursing home pvt. Ltd. Is a private nursing home in health care industry. Thiscase study includes about the audit risks associated with the installation of new IT system forpatient revenue. Audit strategy is commented which is likely to be adopted for the audit ofpatient revenue for gardens nursing home (Alles, 2015). Susan's comments is discussed on thealready started audit. Work done with the spreadsheets of financial data is explained.Responsibilities with respect to the cafeteria fire is analysed. This event handled in the financialreport and audit report are discussed. Going concern issues for MSHG and recommendation tohandle the issue in reports are given.1A- Identifying audit risks associated with the installation of the new IT system for patientrevenue.Garden nursing home can face many types of audit risks while the implementation of newIT system for revenue equivalent to MSHG. Audit risks are issues that can be faced by theauditor while checking the efficiency of new systems which is implemented. These risks orissues are to be effectively handled to ensure the better performance of an organisation. Auditrisk in new IT system are as follows:Control risks- These are the risks which will affect the internal control of anorganisation. Bad control over the management of internal control in Garden nursinghome will badly affect the auditing process of new IT system implemented. Without thebetter control audit report can be wrongly stated. These risks can be overcome by theeffective and efficient planning process followed in business. Employees of the nursinghome should work properly on the basis of plan to reduce the control risk (Brown,Dillard and Hopper, 2015). Audit of new IT system implemented will be effectively doneby managing the audit risk of control.Inherent risks- These types of risks are not easily known or can not be detected. Inherentaudit risks arises because of complexities of new system implemented. These are affectedby the external business environment of the market. Macro factors of environment can
Auditing Theory and Practice : Case Study_3
deeply affect the audit of new implemented IT system in Garden nursing home. Inherentrisks can be overcome by proper research of the external macro factors. Auditor canmaker proper plan or strategy to be implemented in their audit process.Detection risks- This risk arises due to failure of an auditor to find problems or issues inthe system or reports. Detection risks are the outcome of bad planning and poormanagement system at the time of implementing new IT system in Garden nursing home.Not making proper plan and not understanding all types of risks can lead to failure todetect issues in the audit process or report (Components of audit risks, 2012). Detectionrisks can be properly handled by making proper plan or strategy which would beimplemented in the process of audit.These are some risks which can be faced by Garden nursing home while changingpatients revenue system which is equivalent to MSHG. B- Commenting on the audit strategy which is likely to be adopted for the audit of patientrevenue for garden nursing home.Auditing strategies are the guidelines which are to be followed at the time of auditprocess in the organisation. It is important to make proper strategy for efficient audit.Implementation of new IT system in Garden nursing home will be benefited in their checkingprocess by the proper strategy (Byrnes and et.al, 2015). Audit strategy which is likely to beadopted by organisation is described below:Objectives- At the first step of strategy the organisation set the objectives which are to beachieved with process of audit in patient revenue systems.Identifying risks- Auditing strategy contains identification of all types of risks which areto be faced by the auditor while auditing the new system of patient revenue system inGarden nursing home. Measures to reduce risks- Now the strategy will contain effective measures which canreduce the impact of risks on the effective audit process.Monitor- Firm monitors the process of strategy to know that guidelines set are beingfollowed or not. This helps in effecting performance of the audit process.Solving issues- At last the auditor solves the issues after the monitoring process. Thiswill help them to make proper audit strategy next time.
Auditing Theory and Practice : Case Study_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Auditing and Assurance: Factors Influencing Materiality in DIPL
|11
|2997
|136

Failure of Home Insulation Program in Australia
|13
|749
|90

IT-Services: Report on the Use of Cloud Computing in Healthcare
|9
|1435
|273

Managing Finance in the Public Sector | Report
|8
|2222
|51

IT Audit and Control
|10
|2933
|385

Facilitating changes in health and social care assignment
|11
|4261
|25