Accountancy Program
Butuan City
IN PARTIAL FULFILLMENT
By
Manansala, Renz C.
September 2016
Introduction
Definition
Goal
The Process
During the pre audit, the auditor meets with managers, explains
the audit process and gathers basic information about the company
to determine concerns and risks. Next, the auditor meets with key
managers to verify the components of the audit and the associated
concerns. Third, the auditor meets with those in control of high-
risk areas and figures out and documents their objectives and
control activities. The auditor sends the documentation to the
managers for confirmation and discusses controls not in place.
Fourth, the auditor designs and prepares testing procedures for
each key control. He reviews the plans with managers and carries
out the tests, documenting and discussing all results and
improvement proposals. Fifth, he drafts an audit report, meeting
with management until it is clear that management knows how to
address the issues found. The final step is the creation of a
final report and follow-up.
Reference:
Thibodeaux, W.(2016). What Is an Operational Audit
Process?.Retrieved September 13, 2016 from
http://smallbusiness.chron.com/:
http://smallbusiness.chron.com/operational-audit-process-
24707.html
Father Saturnino Urios University
Accountancy Program
Butuan City
Audit Objectives:
PRODUCTIVITY
EFFICIENCY
June 2016
JULY 2016
UNIFORMS
Quantity of uniforms to be
Tailoring
ordered for tailoring will be of uniforms every twice a year
Every start of sem
estimated through the Point
of Sale System every start of
the semester
Inventory
*Inventories are
Point of Sale maintained through the
Point of Sale System
BOOKS
*Inventories are
maintained through the
Point of Sale System
SUPPLIES
Inventory
Point of Sale
*Inventories are
maintained through the
Point of Sale System
Father Saturnino Urios University
Accountancy Program
Butuan City
TIMELINE OF ACTIVITIES
DATE ACTIVITY
JUNE
21 Submission of request letter at ARSO-FSUU
Bookstore
Approval of letter
25 Writing of Audit Charter
28 Making of Audit Plan
JULY
1 Submission/Consultation of Audit Charter and Plan
2 Making of Operations Flowchart
4 Submission of Flowchart
5 Brainstorming regarding questions for interview
with client
6 Formulation of interview questions
7 First interview with ARSO Director
11 Consultation of minutes of the interview
Formulation of questions for program deans and
offices interview
14 Interview with ARSO Director
15 Validation of survey questionnaire for program
dean and offices
21 Gathering of book order forms
AUGUST
1-20 Analysis of book order forms, formulation of
findings and recommendations
16 Submission of letter to the VP-Academics for
interview
23 Presentation of findings and recommendations to
Dr. Jamili
27 Distribution of survey questionnaires to students
31 Interview with Human Resource Office Head
30 Gathering of Purchase Requisition Forms
SEPTEMBER
5-10 Analysis of Purchase Requisition Forms and Survey
Questionnaires
12 Finalization of Audit Report
Father Saturnino Urios University
Accountancy Program
Butuan City
FSUU BOOKSTORE
Minutes of the Interview
Books
Supplies
Uniforms
Q11: What kind of processes does the tailoring handle? How long
does it take the tailors to finish one product?
A: We establish it. Since we have regular suppliers, we just tell
them the quantity, the sizes and then they sew. We order 3 months
before enrolment and classes so orders will be able to arrive on
time considering the quantity of the order.
Q14: What are your bases in pricing the uniforms? Do you consider
the outside factors? Do you adjust to the students' budget?
A: The prices are based on the freight. We have never changed the
prices of uniforms in 10 years, because so far our goal is
provide services to students. Providing uniforms is not the bread
and butter of the bookstore. We merely have the uniforms so
students will have something to wear. We do not plan to
monopolize the industry, the students can always outsource.
Father Saturnino Urios University
Accountancy Program
Butuan City
ANALYSIS OF OPERATIONS
BOOKS
OBJECTIVE FINDINGS RECOMMENDATION PROCEDURE
AP
The Author of
the books
The bookstore
ordered
PRODUCTIVITY: must ensure
matched with Inspectio
that the
the books n and
To assure each number of
received; the double-
program dean that books ordered
quantity of checking
the books pre- must be
the books of book
ordered parallel the parallel with
ordered does order
books mentioned in the number of
not forms
the order form. books
correspond to
received.
the books
received.
The Bookstore
Distribu
should
There is no tion of
thoroughly
date required notice
examine the
and source and
book order
indicated to guidelin
forms upon
some book es of
receipt and
order forms. proper
sign to ensure
filing
the validity of
of forms
such
TIMELINESS
To assure that
all supplies,
Books are The best Process
duly ordered with
usually possible the book
approved forms,
received period for the order
will be
during availability forms
inventoried on
classes; 1st. of the books upon
time and will
or 2nd week ordered is receipt
arrive as
of classes. during 1st week to avoid
scheduled.
of classes. delays.
1. To
ensure
no delay
TIMELINESS: in the
inventor
To ensure all
y, the
operations of the
program
FSUU BOOKSTORE
dean
will accommodate
must
the needs,
submit
specifically meet
book Follow
the book
order up on
requirements to
forms 2 the book
their respective
weeks orders
professors, of
Orders are before and
the university's
placed during the setting
students most
enrollment. commence up of
especially in the
ment of deadline
opening of
classes. of the
academic
2. The order
semesters.
bookstor forms
e must
process
the book
order
forms
upon
receivin
g them.
OBJECTIVE FINDINGS RECOMMENDATION PROCEDURE
BAP
Evaluati
The Author of on of
the books Compare and the
ordered evaluate the number
PRODUCTIVITY:
matched with bookstores and of
the books deans students
To assure each
received; the estimation of in each
program dean that
quantity of orders and program
the books pre-
the books implement a and
ordered parallel the
ordered does statistical assessme
books mentioned in
not research on the nt of
the order form.
correspond to best such
the books estimation. with the
expected. program
deans
1 To
TIMELINESS: ensure
no delay
To ensure all in the
operations of the inventor
FSUU BOOKSTORE y, the
will accommodate program
the needs, Orders are dean Inspect
specifically meet placed when must ion and
the book the need submit double-
requirements to arises book checkin
their respective order g of
professors, of forms 2 book
the university's weeks order
students most before forms
especially in the the
opening of commence
academic ment of
semesters. classes.
2 The
bookstor
e must
process
the book
order
forms
upon
receivin
g them.
COMMUNICATION:
Inform
To ensure that
the
the branch is
There should be respecti
able to transmit
The program prompt ve
information to
is not given notification program
its regular
notice when when there is in case
customers as well
there is unavailability of
as suppliers to
delay of of books or delays
avoid
books. delay in its or
miscommunication.
deliverance. unavaila
bility
of books
TIMELINESS:
To assure that
Books are
all supplies, Process
usually
duly ordered with The best the
received 1
approved forms, possible period book
week after
will be for the order
the
inventoried on availability of forms
submission of
time and will the books upon
book order
arrive as ordered is receipt
forms; there
scheduled. during 1st week to
are times of
of classes. avoid
delay
delays.
ASP
Signatory of
PRODUCTIVITY: the recipient
is lacking in
To assure each Bookstore should Inspectio
most of the
program dean that examine the book n and
forms
the books pre- order forms upon double-
ordered parallel the receipt of such checking
books mentioned in and sign the of book
the order form. forms to assure order
validity of forms
orders
Quantity of
books ordered
are usually
based on the
book order
form and the Evaluatio
program deans n of the
Compare and
complained number of
evaluate the
that the students
bookstores and
bookstore in each
deans estimation
will reduce program
of orders and
the quantity and
implement a
ordered thus assessmen
statistical
accuracy of t of such
research on the
forecast will with the
best estimation.
depend on the program
deans deans
estimation
of orders.
Bookstore should
follow-up the
PRODUCTIVITY: program deans
There is no Follow-up
upon submission
To accommodate exact date of the
of the book order
students utilizing indicated bookstore
forms and relay
the least possible when the to the
to the deans that
time but maximizing books are program
proper indication
service required. deans
of the date
required is
essential
EFFICIENCY:
To ensure that Lack of The Bookstore Distribut
majority of the proper should give ion of
students' needs will identificatio notice to the notice
be accommodated by n of program deans and and
the FSUU Bookstore author/source give them guideline
main branch. in the book instructions on s of
order form. how to properly proper
Proper
identificatio
n of book filing of
fill the form up
title and forms
author is
vague
TIMELINESS:
To ensure all
operations of the
FSUU BOOKSTORE will
accommodate the Follow up
needs, specifically on the
Implementing a
meet the book book
Department deadline of weeks
requirements to orders
their respective deans delay before the
and
professors, of the in submitting scheduled order
setting
university's book order of books from
up of
students most forms suppliers. A
especially in the deadline
beforehand. minimum of two
opening of academic of the
weeks beforehand.
semesters. order
forms
NP
PRODUCTIVITY:
SUPPLIES
The staffs
responsible for
accepting
purchase
requisition forms
must make sure
the dates are
filled in
properly before
receiving such.
The staff must
also brief the
various programs
that the complete
filing of
purchase
requisition forms
is necessary so
there may be
minimal errors
only in the
processing of
such.
Assessment of In ordering a
To ensure
Purchase specific item
the
probabilit Requisition from the FSUU
y of the Forms Bookstore, it is
arrival of of upmost
additional importance that
books on the date when the
time in supplies are
the case
needed be
of lack of
supplies. indicated so that
in any case of
The date when
delay or
the supplies
cancellation in
are needed is
either the
not specified
supplier or the
in the
bookstore for any
Purchase
reason stated,
Requisition
the bookstore
Forms
will be able to
adjust the
ordering of the
items with
respect to the
date when the
items are needed
to avoid or
minimize the
presence of
delays.
Uniforms
END-OF-DAY PROCEDURES
At the end of the day, the cash receipts clerk prepares a three-
part deposit slip for the total amount of the cash received. One
copy is filed and the other two accompany the cash to the bank.
Because cash is involved, armed guards are often used to escort
the funds to the bank repository.
Finally, a batch program summarizes the sales and cash receipts
journals, prepares a journal voucher, and posts to the general
ledger accounts as follows:
DR CR
Cash XXXX.XX
Cash Over/Short XX.XX
Accounts Receivable XXX.XX
Cost of Goods Sold XXX.XX
Sales XXXX.XX
Inventory XXX.XX
The accounting entry in the table may vary among businesses. Some
companies will treat credit card sales as cash. Others will
maintain an AR until the credit card issuer transfers the funds
into their account.
Reference:
Accounting Informations System by James Hall
FSUU
BOOKSTORE
The bookstores inventory and sales system is dependent on
the point-of-sale.
Student
Finance Department
Billing
In the proposed system, the auditors emphasized the
involvement of the program deans because such entity contributes
a great participation to the operations of the bookstore.
Upon filling up, the filed Book Order Forms will be sent to
the Vice President-Academic Affairs for approval and for validity
that such books ordered are following the syllabus assigned to
them individually. The approved Book Order Forms now reaches the
FSUU Bookstore where it will be undersigned as received and will
be subject to scheduling for order. Those Book Order Forms
Already scheduled will then be recorded in the Sales Records.