The board of Tetra Pak Inc has recently decided that in order to comply with principles set forth by GAAP that it is in the best interest of the company to hire external auditors to conduct an annual audit. The purpose of this audit is to achieve an unbiased review and assessment of all company records related to financials and supply chain for the previous year. This will provide both internal and external stakeholders a complete and unbiased view of the company’s financials. This audit will be conducted annually by the selected accounting firm and will concentrate on both financial and inventory records.
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'New Changes in Tetra Pak Inc Policy'
The scope of the Tetra Pak audit will be primarily concentrated on all financial aspects of the company. This will include all accounting, accounts payable, accounts receivable, and inventory portions of our financial records. Additionally the audit will be expected to include a partial inventory count of our supply chain so as to ensure that internal inventory counts matchup with the financial numbers indicated within our accounting documents. Other Tetra Pak affiliated companies such as Alfa Laval will not be included in the scope of the audit.
The closing date for all company financial and inventory records for 2015 in January 4th, 2016. We will then require about a week to ensure all records are entered within the system prior to the beginning of the external audit by the selected accounting firm. Therefore the period for which we expect the audit to be conducted will be for two weeks beginning in the 3rd week of January 2016, beginning on the 18th and being finalized by January 29th. If there are any delays within the audit that will result in additional time being needed to complete the audit, the additional costs associated with this time will need to be in contract and approved by management prior to the 29th of January.
The selected firm for the external audit will perform a majority of the work at the Tetra Pak Inc headquarters in Vernon Hills, IL. All financial records being reviewed by the chosen firm are to stay within the confines of the Tetra Pak facility. Any documents or records that need to be taken off sight shall be approved by management beforehand. At the conclusion of the audit officials from both Tetra Pak and the accounting firm will meet and a predetermined off sight location to discuss results and findings of the audit.
As part of the external audit the chosen firm will be responsible for assessing all aspects of the business that contribute to our financial results. The following is a list of items that will need to be covered by the audit:
- Review of financial statements
- Review of accounts payables for year prior
- Review of accounts receivables for year prior
- Inventory records for prior year
A statement of work is a document that is often times used in various forms of project management to define specifics activities related to a project, deliverables, as well as associated timelines for each deliverable. Ultimately the document forms a contractual obligation between the vendor and the client. In this case we were procuring a firm to conduct an audit for our chosen company. For my Statement of work I chose to utilize 5 different sections including; the introduction, scope of the work, period of performance, place of performance, and the work requirements of the project. These are the five most basic sections used to define a project on a statement of work.
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The introduction of the SOW is used to define the project at hand, and what the project is seeking to accomplish. The second section is the scope of work. The scope portion of the SOW defines what the project will cover. For this SOW specifically listed the various portions of the audit that the chosen firm will be expected to analyze. The next portion of the SOW is the period of performance section. Here I have clearly stated the dates and times at which the vendor will be expected to conduct the work on the audit. Following the period of performance is the place of performance. This is used to define where the work that it being defined within the SOW will be conducted. Finally the SOW is concluded with the specific work requirement of the project at hand.
