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7/29/2019 DABC Presentation - Financial Audit Procedures
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1
Office of the
Utah State Auditor
DABC FINANCIAL AUDIT
PROGRESS REPORT
September 24, 2013
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Mission Statement
We provide Utah taxpayers and government
officials with an independent assessment offinancial operations, statutory compliance,
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Office of the
Utah State Auditor
local government.
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Objective Improve oversight of financial operations,
retail business, and inventory control Not a traditional financial statement audit
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Office of the
Utah State Auditor
Worked with Commission to identify keyaudit procedures
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Overview of Procedures Inventory procedures
Cash receipting procedures Secret shopper procedures
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Office of the
Utah State Auditor
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Retail Stores Tested
Salt Lake City (#1)
Sugarhouse (#2)
Bountiful #8
Sandy (#16)
Taylorsville (#26)
Hollada #29
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Office of the
Utah State Auditor
Murray (#9)
Cottonwood
Heights (#15)
Draper (#31)
Park City (#37)
Park City (#38)
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Inventory Procedures Observe year-end physical inventory
count at warehouse Review cycle count documentation at
retail stores
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Office of the
Utah State Auditor
Observe receiving procedures at retailstores
Inspect security at property of commoncarrier
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Cash Receipting Procedures
Perform surprise cash counts
Review log of cashiers overages/shortages
Test de osits
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Office of the
Utah State Auditor
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Secret Shopper Procedures
Observe:
Cash handling
Requests for identification
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Office of the
Utah State Auditor
Underage loitering
Security measures
Restroom accessibility
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Secret Shopper
Selected:
Top 10 retail stores based on sales revenue
High-volume July 4th holiday
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Office of the
Utah State Auditor
Shopping:
15 secret shoppers
38 purchases during 2 days prior to holiday Made returns after the holiday
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Lack of Receipts
Receipts only provided upon request for
cash sales under $50
Common practice in retail to offer a
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Office of the
Utah State Auditor
rece pt on a transact ons to re uce t erisk of skimming
We recommended offering receipts for alltransactions
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Inventory Transport Review
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Office of the
Utah State Auditor
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Unsecured Inventory Identified
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Office of the
Utah State Auditor
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Unsecured Inventory Identified
We recommended securing inventory
when in transit
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Office of the
Utah State Auditor
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Status of Audit ProceduresWarehouse
&
Retail Stores
Inventory:
Inventory counts
Inventory valuation tests Evaluation of shortages
Evaluation of security
Completed
Not yet completedCompleted
Completed
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Office of the
Utah State Auditor
Retail Stores Secret Shopper activities Completed
Retail Stores Cash receipting at retail stores Completed
Legally required revenue
distributions
To be completed by Oct.
18th
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Office of the
Utah State Auditor
au or.u a .gov
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Office of the
Utah State Auditor