DABC FINANCIAL AUDIT PROGRESS REPORT September 24, 2013 - - PowerPoint PPT Presentation

▶
dabc financial audit progress report
SMART_READER_LITE
LIVE PREVIEW

DABC FINANCIAL AUDIT PROGRESS REPORT September 24, 2013 - - PowerPoint PPT Presentation

Oct 21, 2023 248 likes •421 views

DABC FINANCIAL AUDIT PROGRESS REPORT September 24, 2013 1 Mission Statement We provide Utah taxpayers and government officials with an

slide-1
SLIDE 1

1

  • DABC FINANCIAL AUDIT

PROGRESS REPORT

September 24, 2013

slide-2
SLIDE 2

Mission Statement

We provide Utah taxpayers and government

  • fficials with an independent assessment of

financial operations, statutory compliance, and performance management for state and

2

  • and performance management for state and

local government.

slide-3
SLIDE 3

Objective

  • Improve oversight of financial operations,

retail business, and inventory control

  • Not a traditional financial statement audit
  • Worked with Commission to identify key

3

  • Worked with Commission to identify key

audit procedures

slide-4
SLIDE 4

Overview of Procedures

  • Inventory procedures
  • Cash receipting procedures
  • Secret shopper procedures

4

slide-5
SLIDE 5

Retail Stores Tested

  • Salt Lake City (#1)
  • Sugarhouse (#2)
  • Bountiful (#8)
  • Sandy (#16)
  • Taylorsville (#26)
  • Holladay (#29)

5

  • Bountiful (#8)
  • Murray (#9)
  • Cottonwood

Heights (#15)

  • Holladay (#29)
  • Draper (#31)
  • Park City (#37)
  • Park City (#38)
slide-6
SLIDE 6

Inventory Procedures

  • Observe year-end physical inventory

count at warehouse

  • Review cycle count documentation at

retail stores

6

  • retail stores
  • Observe receiving procedures at retail

stores

  • Inspect security at property of common

carrier

slide-7
SLIDE 7

Cash Receipting Procedures

  • Perform surprise cash counts
  • Review log of cashier’s overages/shortages
  • Test deposits

7

  • Test deposits
slide-8
SLIDE 8

Secret Shopper Procedures

  • Observe:

– Cash handling – Requests for identification

8

  • – Underage loitering

– Security measures – Restroom accessibility

slide-9
SLIDE 9

Secret Shopper

  • Selected:

– Top 10 retail stores based on sales revenue – High-volume July 4th holiday

9

  • Shopping:

– 15 secret shoppers – 38 purchases during 2 days prior to holiday – Made returns after the holiday

slide-10
SLIDE 10

Lack of Receipts

  • Receipts only provided upon request for

cash sales under $50

  • Common practice in retail to offer a

receipt on all transactions to reduce the

10

  • receipt on all transactions to reduce the

risk of skimming

  • We recommended offering receipts for all

transactions

slide-11
SLIDE 11

Inventory Transport Review

11

slide-12
SLIDE 12

Unsecured Inventory Identified

12

slide-13
SLIDE 13

Unsecured Inventory Identified

  • We recommended securing inventory

when in transit

13

slide-14
SLIDE 14

Status of Audit Procedures

Warehouse & Retail Stores Inventory:

  • Inventory counts
  • Inventory valuation tests
  • Evaluation of shortages
  • Evaluation of security

Completed Not yet completed Completed Completed

14

  • Retail Stores Secret Shopper activities

Completed Retail Stores Cash receipting at retail stores Completed Legally required revenue distributions To be completed by Oct. 18th

slide-15
SLIDE 15

auditor.utah.gov

15

  • auditor.utah.gov
slide-16
SLIDE 16

16