1) Discuss the specific risks and nature of the company you will be auditing and create comprehensive work programs for the Inventory, Warehousing, and Payroll accounts and cycles.
2) Submit a 700- to 1,050-word document that includes the following:
•Audit steps for tests of controls, balances, transactions, analytical procedures, etc. as well as other considerations such as sample size and sample methodology.
•A brief summary page should be included in this document, 525 to 700 words, for each of the work programs. Include in this summary specific financial information gleaned from the current Form 10-K used to perform an analysis of work program steps. For example, if the team noted significant swings in the Inventory balance year-over-year, identify these swings and how you address them in your work program (this is in essence an audit procedure - analytical review).
ONLY Portion that needs to be done:
3) Analytics for Inventory - Calculate Average inventory per company owned store year over year. Need to do it on a per store basis to take into account that there were more stores in 2015 than 2014. We'd also want to look at margins and compare the extended values year over year - these would be impacted by increases in commodity prices (page 28 of 10-k). This person would also do analytics for payroll (Table 20-3). Payroll expense per store would be a good analytic or if we look at it in total we would expect the expense to increase in proportion to sales. Payroll tax as a % of wages is a good one too. Also check out my comment in #5 and read what is on page 27 of the 10-k if the Company is calculating labor efficiency this would also seem to be a good analytic.
Attachment:- Ruth-s-Hospitality-Group-10-K.rar
Attachment:- TABLE-20-3- Analytical Procedures for the Payroll and Personnel Cycle.rar