FMGT 3310-Audit planning in anEDPenvironment

by | Mar 18, 2020 | Uncategorized

  

Audit planning in anEDPenvironment

Farm Fresh Foods Inc. (FFF) is a new food distribution company that has been profitable since the second month of operations. It has arranged with Smith LLP, a certified general accounting firm, to conduct an external audit of its first year of operations. FFF has a large electronic data processing (EDP) installation with six EDP employees, including the EDP manager, a former accountant who is taking courses to upgrade her skills in computer operations and programming. Mary Heston of Smith LLP is in charge of designing an audit plan for the EDP function, and Ahmed Khan is auditing receivables, purchases, and payroll.

Required

What information does Smith LLP need to obtain about the EDP function when developing its audit plan for FFF? State six examples.

  

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