Evaluate effective internal controls

Reference no: EM131935710

Assignment 2: Audit Planning and Control

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.

Reference no: EM131935710

Questions Cloud

How would that impact the need for unions : If the federal government enacted a law mandating a living wage how would that impact the need for unions

Write a comparative analysis of the articles : In your discussion, give example(s) of your organization handles ethic concerns as they relate to information management.

Reviewing proposals for budget cuts : Discuss two to three challenges an administrator may face when developing and reviewing proposals for budget cuts.

Government and business budget making : Describe and discuss the apparent differences between government and business budget making.

Evaluate effective internal controls : Evaluate effective internal controls that minimize audit risk and potentially reduce the risk of fraud. Use technology and information resources to research.

Examples of ways organizations can manage a diverse group : You are assigned to work on a team in the workplace with a person who has a different personality type than you.

Considering the pricing of air fare : What impact do you think social media has on considering the pricing of air fare? Would the pricing competition be the same without the online tools?

Assignment-health insurance expansion : Health care market failures, such as adverse selection, can be addressed through government policy and regulation. By limiting barriers and providing

Explain why you chose that option : Describe a current event (from the past 12 months) where this type of scenario (in this case Sexual Harassment) was in the news. (6-8 sentences)

User Account

All Pages