Reference no: EM133023112

Audit Procedures

Introduction
The AICPA Pre-certification Core Competency Framework provides detailed information of the following project competencies:
Risk assessment, analysis and management:
o Assess, analyze and manage risk using appropriate frameworks, professional judgment and skepticism for effective business management.
Measurement analysis and interpretation:
o Identify and apply appropriate, reliable and verifiable measurements to analyze data for a given purpose and intended use.
Reporting:
o Identify the appropriate content and communicate clearly and objectively to the intended audience the work performed and the results as governed by professional standards, required by law or dictated by the business environment.
Research:
o Identify, access and apply relevant professional frameworks, standards and guidance, as well as other information for analysis and to make informed decisions.
Process and research management:
o Identify concepts and techniques for business planning, operations and evaluation processes, as well as resource management, and consider how they are used in an organization.
Governance perspective:
o Understand the legal and regulatory environments affecting an organization and their effects on an organization's operations, internal controls and enterprise risk management. Recognize an organization's social and environmental responsibilities.
Professional behavior:
o Practice in a manner that is consistent with the character and high standards set by the AICPA and the accounting profession. Demonstrate a work ethic and respect for diversity, as well as a commitment to continuously acquire new personal and professional skills and knowledge.
Decision-making:
o Objectively identify and critically assess issues and use professional judgment to develop appropriate decision models, identify and analyze the costs and benefits of alternative courses of action and recommend optimal solutions.

Communication:
o Actively listen and effectively deliver information in multiple formats tailored to the intended audience.

Scenario:
After working as a financial accountant for a number of years, you decide to apply for a position you learned about from a virtual career fair offered by UMGC's Career Services. The most prestigious accounting firm in the District of Columbia, Gilbert, Lombard, & Wolod were looking to hire several accountants and preferred UMGC graduates given the reputation of its graduate accounting programs. Shortly after the virtual fair, you receive a certified letter in the mail stating: Your application for an auditing position been approved by the Supervising Senor Auditor. Please contact our Human Resources Department at 201-000-0000 to continue in the hiring process. We look forward to having you on the Gilbert, Lombard, & Wolod team.

Review the Marco project to evaluate their control environment strengths and weaknesses. For each strength, provide a short description of the activity or feature you believe is a strength and then explain how it strengthens their control environment. For each weakness, provide a description of the activity or feature that you believe is a control environment weakness, an explanation of how it weakens the control environment, and a recommended improvement. Limit your answer to three major strengths and three major weaknesses. I have provided one example of each in the template file, and you need to add three more strengths and three more weaknesses to the table in the template file.

Review their specific controls over sales and collections (i.e., based on the Sales and Collection Processing section of the project) and purchases and payments (i.e., based on the Purchasing and Payments Processing section of the project) to evaluate transaction control weakness.

Describe the control weakness (a short statement of weakness):

Describe how the weakness could create a material error in the financial statements including which general ledger accounts and audit objective might be affected (be clear on which category is involved, balance, transaction, or presentation and disclosure) and provide an explanation of how the weakness might lead to a violation of the audit objective.

Make a recommendation on how their controls could be improved to mitigate this weakness; and Discuss some potential weaknesses in the control you suggest (e.g., how it might be overridden).

Attachment:- Audit Procedures.rar