Page 172 - DCOM509_ADVANCED_AUDITING

Unit 9: Audit of Limited Companies

Notes
maturity models were used extensively in the definition of the SAB plc global IT strategy
to:
 Assess IT process capability maturity (actual and desired) for South Africa, Africa
and Europe IT departments.
 Identify the steps or actions required to improve IT process capability maturity.
 Identify and understand areas of knowledge sharing across the group.
 Facilitate IT organisational design, e.g., determine the level of process consolidation
and level of consistency for COBIT processes on a global, regional and local basis.
 Define IT services based on COBIT IT processes.
 Identify the key headlines, or what should be the focus, to support the business in
achieving desired capabilities. This was essential in establishing business and IT
alignment.

Conclusion
The SAB Ltd. team found that the extensive education campaign, supported by pre-reading
materials and presentations prior to implementation, greatly increased awareness and
support of COBIT among SAB Ltd’s IT and business communities. Once the overall business
benefits of COBIT were communicated, senior business executives realised the framework
could help determine accountability for processes and improve IT governance. By using
the framework as the basis for an accountability matrix, SAB Ltd. began achieving a role-
based IT organisation with defined process measures to ensure customer value.
Question:
Analyse the case and write down the case facts.

Source: http://www.isaca.org/Knowledge-Center/cobit/Pages/South-African-Breweries-Limited.aspx

9.10 Summary

 The audit of a company differs from the audit of a partnership in various ways and
involves many preliminaries.
 The auditor has to (a) make sure that his appointment is in order, (b) obtain a letter of
engagement, and (c) acquaint himself with articles and memorandum of association, the
scope of work, the system of accounting and internal control, etc. For the whole audit
assignment he must follow the normal procedure of audit, the relevant statutory provisions
and the guidelines of auditing standards.
 Audit of share capital assumes significance at the time of incorporation of the company as
well as subsequently when fresh share capital is issued.

 Audit of share capital should be conducted at three stages viz, application stage, allotment
stage and call stage. The auditor must ensure that in case of shares issued for cash, bash has
actually been received.
 In case of shares issued for consideration other than cash the relevant contract may be
examined. If the shares had been issued at a premium or at a discount, the auditor should
examine compliance with all legal requirements and proper disclosure in the financial
statements.

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