http://www.theiia.org/intAuditor/ask-the-experts/2010/no-shoes-no-service/ Blogen-us Mon, 07 Nov 2011 10:39:12 AMMon, 07 Nov 2011 10:39:12 AM http://www.theiia.org/intAuditor/ask-the-experts/2010/no-shoes-no-service/2011-04-16Interesting, especially reading others comments. I'm new to IIA coming from IT, having been a CISA for a number of years. I would first audit the finding that say there is a problem. If they have been successful in the past why is there a problem now? Is it expansion in the sales market(not clear) or some other reason like the head of Stocks & Inventory having just left for retirement? His knowledge would have been invaluable. I also don't like the phrase Company Experts. Is this IT driving the solution rather than business? It's not clear and I would investigate their findings. I believe Joe is being put in an impossible position, he's being asked to "Project Manage" when his job should be to ensure the project is managed by those who should do project management. One thing Joe must do is also distance himself from the actual deliverable..."a significant increase in sales". This is way outside of his remit and it should be made clear that only the business stakeholders are resonsible for this kind of delivery. regards http://www.theiia.org/intAuditor/ask-the-experts/2010/no-shoes-no-service/2010-10-08As CAE, Joe needs to review whether the system development project will address the problems they've had with stocking, and that implementation is conducted with proper controls to ensure that controls over inventory are maintained throughout. He needs to review the documentation associated with the project, such as a project charter, to determine whether the objectives of the project match up with the CEO's expectations for solving their problems. Joe also needs to review the means for addressing the concerns through the project, and determine if their plan of action for configuring the system will address those issues. Joe also has to review the other controls over system implementation such as testing of the system prior to installation, completeness of testing plans to ensure key components and controls within the system are addressed, the plan for addressing all criticsl discrepancies found in testing and ensuring they are documentated and corrected prior to go-live, and that there is adequate support during go-live to address additional issues (among others - system development audits are too involved to include everything in this comment). If the project does not address the CEO's concerns, Joe needs to communicate that to the CEO and see what the CEO wants to do with the project. If the project is addressing the CEO's concerns, Joe should conduct the review of controls over system development and alert the system development team and the CEO of weaknesses noted. http://www.theiia.org/intAuditor/ask-the-experts/2010/no-shoes-no-service/2010-10-04Hi Very interseting. Shoe business basically fahion oriented and always there is the risk of pile up stock due to change in fashion/Season. Yes the ERP will definetly support. Secondly Joe should map the style wise shoe movement across the country and sugest shifting of not so fast maodels to lesser towns with discounted rate to liquidate stocks. Auto triger for stock replishemnt may be thought of with an eye on changing season/fashion. As the Floor space and other factors are not an issue the shoe shop may be used to display other allied items like sports wear/equipments to increase the Foot fall in to the shops. Hope this supports Joe the auditor