ScholarMatic: Explanation & Answer
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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 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:
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.
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.
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.
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.
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.
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.
ScholarMatic: Explanation & Answer
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