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THE COMMITTEE S PLANNING FUNCTION Introduction The planning function of the committee centers on the purpose for which it was organized. The primary purpose of the committee is to provide assurance to the full board of directors that the internal and external resources allocated to the audit function are used effectively to accomplish the goals and objectives of the overall audit plan. To allocate resources to the audit processes effectively, the committee should adopt its own plan of action. In formulating the plan for accomplishing its objective, the committee should consider an integrated approach. Such an approach should be oriented toward the segments of the auditing cycle, which are: (1) initial planning segments, (2) preaudit segment, and (3) postaudit segment. The four steps in planning the committee s approach may be summarized as follows1: 1. Develop an understanding of the entity s business and its industry. 2. Review the overall purpose, objectives, and resources available for the corporate audit plan and recommend the auditing goals and objectives for approval by the full board of directors. 3. Review the audit plans of the internal and external auditing groups. 4. Appraise the corporate audit plan annually.

Consistency is an important factor in comparability within a single enterprise. Although financial accounting practices and procedures are largely conventional, consistency in their use permits comparison over time.11

In order for the WORK EFFORT to be completed, certain resources need to be made available. Parties, inventory, and equipment may need to be assigned to WORK EFFORTS at different levels of detail. For instance, people may need to be assigned roles at a high level, such as a program or project, and roles may also be assigned at more detailed levels of activity. This section discusses the assignment of parties to WORK EFFORTS. It includes the entities WORK EFFORT PARTY ASSIGNMENT, WORK EFFORT ROLE TYPE, PAR1T SKILL, SKILL TYPE, WORK EFFORT STATUS, and WORK EFFORT STATUS TYPE (see Figure 6.5).

Attack!

A114

IMAGE_DATA_DIRECTORY DataDirectory[IMAGE_NUMBEROF_DIRECTORY_ENTRIES]

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Account Executive enters policy number, policy details and policy type of a particular policy, and the system responds by asking for related customer details and a password.

ASPs are companies that provide hosted access to software applications like Microsoft Office and ERP systems. In effect, a company rents the application while the data is processed on the ASP s computer. Companies typically pay a per-user fee along with a cost-per-storage unit and access-time unit. This cost structure is similar to a model from the 1960s and 1970s, when computers were very expensive and companies used service bureaus to process their data. The difference today is that much of the data is accessed over high speed data lines or over the Internet. The downside of using an ASP is that the user is placing its destiny in another company s hands and is dependant on its security and financial health. The upside is that users are not responsible for purchasing the application, maintaining it, and having to provide the computer power to process the data.

June 16, 2000

All developed code must be unit tested. Unit testing must be completed and signed off by the configuration team. At least 85 percent of all unit test cases must have passed. No defects with a priority level of 1 from unit testing remain unresolved. Any outstanding defects from unit testing are documented and have workarounds.

exchange rates and (2) the inclusion of translation adjustments in shareholders equity marks it as using the all-current translation method. Unlike H.J. Heinz, Storage Technology declares that the functional currency of its foreign subsidiaries is the U.S. dollar, not the local foreign currency. The explanation for this condition is found it its reference to significant volume of inter-company transactions and the manufacture of most of its products in the United States. As with H.J. Heinz, Storage Technology does not identify the translation method it is using. However, the fact that the U.S. dollar is the functional currency of its foreign subsidiaries determines that it must be the temporal method. Moreover, it describes its method as translating monetary assets and liabilities at year-end exchange rates and nonmonetary items at

bag with a few goodies including my laptop, an Orinoco broadband wireless gateway, an antenna, and a few other accessories The goal was simple Try to get into the office area of the casino, take some digital photos (with time stamps) of himself in places he shouldn t be, and then install a wireless access point on the network so that he could try to remotely hack into their systems to collect sensitive information To complete the job, the next day he would have to go back in to get the wireless access point I was feeling quite like James Bond Whurley arrived at the casino, outside the employee s entrance, right at the shift change, positioning himself to be able to observe the entrance.

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