Assignment 2: Audit Planning and Control
Due Week 8 and worth 280 points
It is common industry knowledge that an audit plan provides the specific
guidelines auditors must follow when conducting an external audit. External
public accounting firms conduct external audits to ensure outside stakeholders
that the company’s financial statements are prepared in accordance with
generally accepted accounting principles (GAAP) or International Financial
Reporting Standards (IFRS) standards.
Use the Internet to select a public accounting company that appeals to you.
Imagine that you are a senior partner in a public accounting firm hired to
complete an audit for the chosen public company.
Write a four to six (4-6) page paper in which you:
1.
Outline the critical steps inherent
in planning an audit and designing an effective audit program. Based upon the
type of company selected, provide specific details of the actions that the
company should undertake during planning and designing the audit program.
2.
Examine at least two (2)
performance ratios that you would use in order to determine which analytical
tests to perform. Identify the accounts that you would test, and select at
least three (3) analytical procedures that you would use in your audit.
3.
Analyze the balance sheet and
income statement of the company that you have selected, and outline your method
for evidence collection which should include, but not be limited to, the type
of evidence to collect and the manner in which you would determine the
sufficiency of the evidence.
4.
Discuss the audit risk model,
and ascertain which sampling or non-sampling techniques you would use in order
to establish your preliminary judgment about materiality. Justify your
response.
5.
Assuming that the end result
is an unqualified audit report, outline the primary responsibilities of the
audit firm after it issues the report in question.
6.
Use at least two (2) quality
academic resources in this assignment.Note: Wikipedia and other Websites do not qualify
as academic resources.
Your assignment must follow
these formatting requirements:
·
Be typed, double spaced, using
Times New Roman font (size 12), with one-inch margins on all sides; citations
and references must follow APA or school-specific format. Check with your
professor for any additional instructions.
·
Include a cover page
containing the title of the assignment, the student’s name, the professor’s
name, the course title, and the date. The cover page and the reference page are
not included in the required assignment page length.
The specific course learning
outcomes associated with this assignment are:
·
Plan and design a generalized
audit program.
·
Determine the nature and
extent of evidence accumulated to conduct an audit after considering the unique
circumstances of an engagement.
·
Evaluate a company’s various
risk factors and the related impact to the audit process.
·
Evaluate effective internal
controls that minimize audit risk and potentially reduce the risk of fraud.
·
Use technology and information
resources to research issues in auditing.
·
Write clearly and concisely
about auditing using proper writing mechanics.
