FINAL PROJECT

AF3611 – AUDITING II
MUHAMMAD AAMIR
Scope of the Project
One of the company is interested in hiring your services as a Consultant to
design Internal Control Framework (ICF) for any ONE of their below
mentioned function:
1) Sales System
2) Purchase System
3) Payroll System
4) Inventory System
5) Non-Current Assets
6) IT System
Before designing an internal control framework, you should understand the
basic types of internal controls and how they are intended to function.
When deciding on the types of controls to implement, consider the entity's
objectives and business goals and the associated risks and materiality. 
You may consider following points while preparing your report to the
company.
1) Frequency of controls ( i.e. daily, weekly, monthly…)
2) Preventive vs Detective Controls
3) Manual vs Automated Controls
4) Control activities like Authorization, Segregation of duties etc.
5) Audit procedure for test of controls
You can also refer to COSO framework for preparation of ICF.
The content of report includes but not limited to:
1) Introduction to Internal Control Systems and Internal Control
Framework
2) Organogram of the function you have opted to present
3) Delegation of Authority Guidelines (Approval Matrix)
4) Process in Narrative Form using above mentioned points
 5) Workflow diagram of the process (Flowchart)
General Guidelines for Project submission

Each group has to select any one function (from serial no. 1 to 6) and
submit the report in Excel format (as per Internal Control Framework
Sample attached) in Google classroom accordingly by 13th May 2023.
The activity should be performed in a group and each group comprises of
minimum four (4) and a maximum of seven (7) students. All group
members’ names must be mentioned in the report as Only the group leader
needs to submit the report while turning it in. The rest of the team members
will turn in mentioning their group leader’s name in the comment.
The total marks allocated for the project is 15 i.e. 10 marks for the report
and 5 marks for presentation.