Assignment 2 Audit
Planning and Control
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:
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.
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