The analysis of the financial statements presented by the payroll department of the PQR Preschools Pty Ltd involves missing and manipulated data. It is suspected that some individuals in the staff in the payroll department have been modifying the electronic data stored in the payroll department for their personnel interests. In these conditions, it is essential to modify the current auditing process by applying an electronic version. The audit department has the intention to deploy a series of audit gooks in the computerized payroll system of the department. Audit hooks are the essential application for finding the maladjustments in the electronic data stored in the departments by the individual staff itself. The hooks arranged as a part of the e-auditing system will provide on-time information regarding the attempt of the individuals in the staff to access the electronic payroll records after the data entry of employees’ timesheets. Notification regarding accessing the information facilitates taking actions preventing such malfunctions of the individuals in the staff.
The current audit system in the payroll department is not ensuring efficient performance in identifying the corruptive actions on the part of the individuals in the staff itself. The security of the stored data is not ensured with the current audit system. The corruption in the stored can not be identified on time with accuracy with the present audit system. Thus it is necessary to replace the existing auditing system with a new and advanced one for the secure storage of the electronic data in the payroll department.
A brief statement of the audit hooks system for the payroll department:
The NEW LSM Audit hooks have to be adopted for the payroll departments of the company as they provide optimum accuracy and efficiency in performing the audit functions. It is capable of overcoming the defaults associated with the existing system adopted for internal audit purposes. The generic auditing interface in the NEW LSM audit hooks should provide optimum security to the stored data. It is capable of providing real-time information regarding surreptitious interference by the audit clerks on the electronically stored computer data.
Audit hooks are audit routine programs that identify suspicious transactions on a real-time basis. Embedded program audit hooks will facilitate reducing the complexity in the computerized audit process on the electronically stored data. The flagging of selected transactions is possible through the adoption of an embedded audit system. Tooled flag alerts embedded in the audit hooks should provide alerts to the auditor in time of access to the electronically stored data on the department. This ensuring improved accuracy and authenticity of the auditing process while at the same time smoothening the audit process.
In conclusion, it is recommended that in the payroll department of the company, as a part of the audit process, the NEW LSM audit hooks should be deployed with immediate effect. It is an essential factor for ensuring the security of the electronically stored data and for ensuring the authenticity of the audit process.