The owner of a small snack food and potato chip manufacturer | Auditing

 PROJECT INFORMATION:The owner of a small snack food and potato chip manufacturer, California Crunch Company, has asked you to investigate a possible issue with the company’s payroll.  They have provided you with this year and last year’s income statements and two payroll files.  The “HR Master” file gives you important information about each employee.  The “Payroll” file detailsthe company’s payroll for the last 5 pay periods of the year. You will be conducting some audit procedures for California Crunch and analyzing the results.Course objectives covered: 2-5PROJECT REQUIREMENTS:This project is split into four (4) parts with one (1) part due each week of the course. Based on your readings, use of technology, research of literature, and other sources do the following: Part 1: Review the income statements given to you by the owner of California Crunch Company.  Based on the AICPA Code of Professional Conduct prepare a 2-3 page summary of how you plan to proceed to address the owner’s concerns and what specific steps you would take to audit this company.Part 2: Using the financial statement file and the two data files for payroll, perform some analytical tests.

  • You will need to perform some analytical test on the financial statements using Excel.  This may be a horizontal and/or vertical analysis, ratios, etc.
  • You will then need to perform some analytical tests on payroll files using IDEA that you think may be necessary.  Remember there are tutorial videos on the IDEA website to assist you.  Write a 1-2 sentence explanation for each analysis you are performing and printscreen your results along with the history log when you have completed the analysis in IDEA to turn in this week.

Part 3: Prepare a 2-3 page analysis discussing what you found as a result of your analysis and what internal controls you would recommend to the owner of California Crunch Co.   Part 4: Present your project to the class for discussion. WRITING REQUIREMENTS:

  • The report should be should be 4-5 pages in total for the entire project (not including cover page, abstract, or references)
  • Include the Excel and IDEA screenshot(s) or files as exhibits in your paper
  • Include a minimum of 2 scholarly sources from the KU Library and the AICPA
  • All sources used are to be cited in APA format
  • Please use the writing center if needed

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