Gail Industries Audit Case Study: Financial Controls and Evidence

This assignment presents an audit case study of Gail Industries, a company managing digital transactions for clients like the city of Smallville. The audit focuses on assessing risks and gathering evidence related to financial statements and internal controls. The auditor considers various forms of evidence, including inspection reports and control tests like access control systems, termination checklists, and visitor logs. The analysis emphasizes the importance of evidence in forming audit opinions, particularly regarding the sufficiency of internal financial controls for financial reporting. References to relevant research papers support the methodologies for control testing. The assignment concludes that the audit evidence supports the audit opinion, although future events could impact the company's ability to continue as a going concern.

Running head: CASE STUDY 0
IS AUDITING PROCESSES
JULY 8, 2019
STUDENT DETAILS:

CASE STUDY 1
The audit includes the performing methods to get the audit evidence in relation to the amount
as well as the disclosure in the unrelated Ind AS financial statement of the company. In assessing the
risk, the auditor considers different evidence. The management keeps the some inspection reports
done by third person as the evidence of completion. These inspection reports are following-
1. The fire suppression system’s annual inspection
2. The UPS system’s semi-annual inspection
3. The annual inspection of fire extinguisher placed through the facilities
4. The annual inspection of the fire suppression system as well as fire detection system
Following evidences should be collected to test the controls-
1. Access control systems- the access control system permits the employees to switch from
the physical key for accessing the card. The access control system may recognise the
employee whose card was scanned for opening the door, enhancing protection, as well as
rendering the digital trace of evidence in the incidents. GEO/SCOPE Active Employees Report
can be the good evidence to test the control.
2. Termination checklists- it is required to have specific precautionary measures. The
managers should document the complete procedure of termination of employees. The
documents including the termination checklists would serve as valuable evidence in a case
when the workers file the prejudicial dismissal claims.
3. Datacentres visitor log- the datacentres visitor log can be the good evidence to test the
control over the unauthorised access in the data centres. The guard will proceed to register
the employees in access visitor log (Han, Marciniak & Wright, 2019).
4. Windows Domain Group Policy for Password- this policy can be better to improve the
security of the authentication by fulfilling the complex requirements of the passwords. It is

CASE STUDY 2
required to get the report and manage the report on the active directory group policy
objectives.
5. CCS Active Users Report- CCS Active Users Report is best evidence to control the users
effectively. In this way, it will be easy to assess the success of the business. It will be easy to
enable all the benefits as well as social costs to be estimated (Li, Zhong & Takagi, 2016).
In this way, as per the given case study of Gail Industries, it is clear that the conclusion is based
on audit evidence attained up to date of the audit report. However, the future event and situation
can cause a corporation to end to continue as the going concern. It is believed by the Gail Industry
that the obtained evidence are proper and enough to render the foundation for the audit opinions
on the company’s financial statements. The audit includes performing processes to get above
mentioned audit evidence in relation to the sufficiency of the internal financial controls system on
the financial reporting as well as the operating efficiency. The case study shows that the above
mentioned audit evidence are proper and adequate to render the base for the audit opinions upon
the internal financial controls system of the organisation above the financial reporting.

CASE STUDY 3
References
Han, B. B., Marciniak, C. A., & Wright, J. A. (2019). U.S. Patent Application No.
10/212,158.
Li, F., Zhong, D., & Takagi, T. (2016). Efficient deniably authenticated encryption and its
application to e-mail. IEEE Transactions on Information Forensics and
Security, 11(11), 2477-2486.