UNDERSTANDING THE BUSINESS

Larry’s Landscaping and Garden Supply is a sole proprietorship business engaged in service
activity located at 1045 Main street Bayshore, CA.

Services offered:
 Custom Landscape Design
 Weekly gardening Service
 Installation of landscape design
 Pest control services
 Tree removal services
 Tree and shrub trimming

Clients/ Customer:
 Adam’s Candy Shop
 Andres, Cristina
 Blackwell, Edward
 Chapman, Natalie
 Cheknis, Benjamin
 Corcoran, Carol
 Crenshaw, Bob
 Crider, Craig
 Dj’s computers
 Golliday Sporting Goods
 Gregory, Dru
 Heldt, Bob
 Hughes, David
 Jasmine Park
 Ecker Design

Vendors:
 Bank of Anycity
 Bayshore Caloil Service
 Bayshore Water
 Brown Equipment Rental
 Cal Gas And Electric
 Cal Telephone
  Caloil Company
 Campion, Patrick
 Chris Markley
 City of Bayshore
 City of Middlefield
 Computer Services by DJ
 Conner Garden Supplies
 Employment Development Department
 Express Delivery Service

RISK ASSESSMENT

Application Control Low Risk Medium Risk High Risk

Set up Users:
Username, Password & 
Choice of Access
Back-up Company 
Bill Tracker 
Multi-user Mode 
Print Reports 
Income Tracker 
Add/ Edit Multiple Entries 
Report does not indicate who 
created it
Importing and exporting of 
files
 TEST OF CONTROL

RISK IDENTIFIED ASESSMENT CONTROLS

1. Username/Password entered is incorrect Medium Risk Username, Password &

Choice of Access

2. Back-up copy saved to the same hard High Risk Back-up of Company File
drive that holds the company file

3. Report don’t indicate who created it Low Risk Print Report

4. Internet Connection is needed to be Medium Risk Order Checks

able to view the selected link

5. Download and Install latest payroll Medium Risk Process Payroll Forms
update

Summary of Results:

A username can be given an option to access the entire area of quickbooks or selected areas.The
Password entered must be correct to be able to open the company profile without any error.
Back-up Copy of company must be saved to a different drive or removable storage device to
avoid losing the back-up data incase of hard drive failure. The Report printed must indicate the
one who created the file. An internet connection is needed to access the link of Order Checks . In
Order to process payroll forms download and install the latest update.
ANALYTICAL PROCEDURE
 Larry’s Landscaping and Garden Supply

Balance Sheet

On January-December 2019, since this is the first year of establishment of the business,
therefore it’s given that there’s no Income should be expected in this year. Company incurred
most expenses related to administration because the company starts building its network,
looking for customers.

On January- December 2020, the company incurred a huge loss due to start of higher operating
expenses. The Company Started to acquire materials and equipment for the future services that
will be rendered. Handling, Installation and Fixed Costs should also be considered as these will
be part of unavoidable costs of the entity. The Company expects more expenses but will be
compensated in future professional fees but based on the huge decrease of Income/Loss ratio,
the company should considered the relevant costing to continue.
TEST OF DETAILS
FINDINGS RECOMMENDATION FINAL AUDIT
RECOMMENDATION

1. Report generated by the The report must indicate the name

current accounting software of person who created it to Customize the report
don’t indicate the name of immediately identify the one who
person who created it created the report in case of wrong
input of data

2. Back-up copy saved to the Back up copy of company file must

same hard drive that holds be saved to another location to Use external hard drive to save the
the company file avoid problem incase of system back-up copy of company file
crash

SUMMARY OF FINDINGS AND RECOMMENDATION