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Analyze the income statement for any potential risk factors

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Reference no: EM132027542

Assignment -

Submit a draft of risk factors as identified for all of the major business transactions conducted by your chosen Company.

Auditing is a valuable skill in accounting and business, as the odds are very high that you or your organization will be subject to a compliance, federal, IRS, internal, government, or revenue audit at one point in your career. Accountants are required to make professional judgments on both the financial accounting issues and internal accounting forecasts within their organization. The auditor must provide fair, unbiased, materially correct information for investors, employers, employees, and independent stakeholders. This course will help you navigate the relevant processes to provide that unbiased, accurate information.

For this assignment, you will submit a draft of risk factors as identified for all of the major business transactions conducted by your chosen company. Analyze the income statement, balance sheet, and cash and revenue for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP) or International Financial Recording Standards (IFRS). Based on your analysis of risk, devise a statistical and judgmental sampling program for the audit universe. Recommend the most preferable audit testing procedure based on the audit universe items sampled.

Prompt: Analyze potential risk factors in all the major business transactions using the information you have gathered in previous milestones.

Specifically, the following critical elements must be addressed:

A. Analyze the income statement for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP) or International Financial Recording Standards (IFRS).

B. Analyze the risk factors and compliance issues with GAAP or IFRS on the balance sheet.

C. Using the internal control, analyze the cash and revenue for potential risk factors.

1. What risks need to be documented?

2. How does this information compare to the company or industry averages, or the company's past performance?

D. Explain the audit universe and how you identified it.

E. Based on your analysis of risk, devise a sampling program for the audit universe.

F. Choose the most preferable audit testing procedures that could be used in the field, based on the audit universe items sampled in this situation.

Reference no: EM132027542

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Reviews

len2027542

6/22/2018 8:28:18 AM

Guidelines for Submission: Your paper must be submitted as a 3–4-page Microsoft Word document with double spacing, 12-point Times New Roman font, one inch margins, and at least three sources cited in APA format. Analyzes the income statement for any potential risk factors or compliance issues with GAAP or IFRS. Analyzes risk factors and compliance issues with GAAP or IFRS on the balance sheet. Analyzes the cash and revenue of the company for potential risk factors using the internal control.

len2027542

6/22/2018 8:28:12 AM

Explains the audit universe and how it was identified. Devises a sampling program for the audit universe based on the risk analysis. Chooses an audit testing procedure that could be used and justifies why it would be preferable for this situation. Submission has no major errors related to citations, grammar, spelling, syntax, or organization.

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