08/22/2017 - Laserfiche WebLink

Home Browse Search

SPECIFIC AUDIT APPROACH (continued) The following summarizes anticipated sample sizes in the primary audit areas: Overall disbursement testing — General disbursements Payroll disbursements Federal proQrannconmpUonoataats— Gampleoizerelatingtoeaohprogram selected to meet 50 percentest Revenue testing — 25-40 items 25-40 items Up to 75 items Property taxes, special assessment . and state and federal aids Substantially alt items Substantive accounts,testing of balance sheet revenues, and expenditures/expenses utilize various sample sizes depending on the dollar amount in the account balance and assessed audit risk. Once the sample size has been determined, the sample items are typically selected using a haphazard, random, or systematic method depending on the nature of the items tested. Minnesota legal compliance sample sizes depend on the applicable requirement being tested. C. Extent of Use of Technology in the Engagemeflt At MMKR, we audit clients with evv\dewar\e� of computer systems. Due to the size of our governmental audit practice, weare familiar vv\thmost financial software packages used by&4\nneootalocal governmental units. This experience gives umthe ability to extract reports and other critical data needed from our clients systems efficiently. Theuseoftechnology iaalso heavily \nteg�tedinto every aspect ofour audit process. All K4&4KF<auditors have oomputere vvhiohare networked inthe field and toour office tooptimize the sharing of data. notebook)\ofour�ud\tvv`rkingpaponehavebeengenenatedandouatomizede\eotronico\\y.VVevvorK|na Virtually all working totally paperless audit environment invvhiohall audit programs and �\eavvi||also begene�tedand stored electronically. We primarily use Microsoft aExoe\ for spreadsheet applications and annually provide our governmental clients with audit working our popertemplates inExoe).VVealso utiUzeavariety ofprepackaged and internally -developed software for o1erum/h f functions, including: customized audit prognama, fixed assets and depnao\et|on, amortization,�nanua\�'-statement preparation, graphing, and presentations. During our audit, we will utilize client -prepared workpapers in electronic format, data extracted from our clients' computer ayatema, and direct "read only" access to client dto` when available, to facilitate our audit testing and financial statement analysis. MMKR's goal is to make optimum use of available technology to enhance both the quality and efficiency of our audit process. We believe that by maximizing the sharing of information between MMKR and our clients, we are able to minimize the disruption caused by the audit. D. Type and Extent of Analytical Procedures to be Used in the Engagemeflt MMKR uses analytical procedures in all phases of the audit. Analytical procedures are incorporated as a planning tool, as part of substantive testing, in the final review stages of the audit, and in reporting.