Your role will be to provide an overview of the company and its market industry. From this, you will formulate your processes into a comprehensive flowchart that will be used to identify gaps in processes and other threats to potential audit weaknesses.
By understanding the industry, you will gain valuable insight into the appropriate software systems that will provide industry-specific needs and financial reporting by comparing and contrasting current electronic data processing( EDP) systems with those in the marketplace
By performing substantive testing, you will audit the transaction flow and determine whether financial information is accurately reflected in the system transactions. This will allow for an assessment and recommendation as to the effectiveness of the company’ s internal control processes, including changes in transaction processing if necessary
Finally, through interpretation of current audit and internal control standards, you will determine whether Trinity is in compliance within the industry standards and aligned functionally with both efficiency and effectiveness of controls
Specifically, the following critical elements must be addressed:
I. Overview
To adequately prepare for the following questions, you will need to prepare an overview / assessment of Trinity Industries, including background, key market demographics, financial position, and governance policies. You are required to address the following seven subjects:
a) Overview of the organization
b) Size of the organization
c) Sector / industry( along with three other companies that would be comparable)