Project Information: The owner of a small snack food and potato chip manufacturer, California Crunch Company, has asked you to investigate a possible issue with the company’s payroll. They have provided you with this year and last year’s income statements and two payroll files. The “HR Master” file gives you important information about each employee. The “Payroll” file details the company’s payroll for the last 5 pay periods of the year. You will be conducting some audit procedures for California Crunch and analyzing the results.
Part 1: Using the financial statement file and the two data files for payroll, perform some analytical tests.
You will need to perform some analytical tests on payroll files using IDEA that you think may be necessary. Remember there are tutorial videos on the IDEA website to assist you: https://www.audimation.com/resources/video-gallery/idea-10-tutorials/
Write a 1-2 sentence explanation for each analysis you are performing and printscreen your results along with the history log when you have completed the analysis in IDEA to turn in this week.
You will need to perform some analytical test on the financial statements using Excel. This may be a horizontal and/or vertical analysis, ratios, etc.
Link to download the IDEA software:
Part 2: Prepare a 2-3 page analysis discussing what you found as a result of your analysis and what internal controls you would recommend to the owner of California Crunch Co.