Home Depot’s Broad-Based Audit Plan for 2013

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timer Asked: Feb 10th, 2019
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Question Description

Prepare a broad-based audit plan for 2013 based upon your findings in parts A–C by doing the following:

1. Determine the impact of the prior year’s audit opinion for the current year’s audit plan.

2. Recommend whether the control risk of your chosen company should be assessed at the maximum level or below.

a. Justify your recommendation made in part D2.

3. Discuss the control risk assessment identified in D2 and what impact it will have on the audit procedures to be performed. Include in your discussion each of the following:

• nature

• timing

• extent

4. Identify areas of focus for the upcoming audit, including specific balance sheet and income statement accounts based upon the significance of those accounts and their related risks.

5. Recommend which accounts identified in part D4 should be tested using analytical procedures and which accounts should be tested through substantive tests of detail.

a. Justify your recommendation made in part D5.

6. Discuss whether or not there is a going-concern consideration.

7. Recommend whether the audit should be conducted at one main location or if the audit team should be dispersed to other locations.

a. Justify your recommendation made in part D7.

8. Describe the five main steps the audit team will perform.

E. Include all in-text citations and references in APA format.

Tutor Answer

Doctor_Ralph
School: University of Maryland

Attached.

Outline


Introduction



Body



Conclusion



References


Running head: HOME DEPOT’S BROAD-BASED AUDIT PLAN FOR 2013

Home Depot’s Broad-Based Audit Plan for 2013
Names:
Institution:

1

HOME DEPOT’S BROAD-BASED AUDIT PLAN FOR 2013

Home Depot’s broad-based audit plan for 2013
Companies create financial statements for each financial cycle for presentation to their
stakeholders including the Securities and Exchange Commission (SEC) and the investors.
However, these financial statements have to be audited or validated in order to identify
potential risks that the company could be facing and errors that could have led to a
misstatement of financial results and statements. For this assignment, The Home Depot, Inc.
has been selected as the company of interest. Home Depot is the largest home improvement
supplies retailer and service provider in the US by revenue. The company operates more than
2,600 outlets in the US, Canada, and Mexico (Home Depot, 2014). In March 2014, the
company filed its Form 10 K report with the SEC as per the requirements of the law. This
came following an audit that was conducted by KPMG for its financial statements for the
2013 financial year that ended in February 2014. This paper will analyze the various
components of the company’s Form 10 K including the audit opinion and its impact on
subsequent years, assessment of control risks and their impact on the audit procedures,
analysis of income statements, and recommendations of an audit plan for the company.
Impact of audit opinion
Home Depot is audited by KPMG. After carrying out an audit for Home Depot’s
financial statements for 2012, KPMG provided an opinion that the company “maintained, in
all material respects, effective internal control over financial reporting as of February 3, 2013,
based on criteria established in Internal Control – Integrated Framework” (Home Depot,
2013). This means that KPMG had determined that Home Depot had adhered to all the
essential accounting guidelines and that its accounting methods could not have a material
impact on the statements that it presented or their correctness.

2

HOME DEPOT’S BROAD-BASED AUDIT PLAN FOR 2013
An audit opinion has an impact on the auditing process and the presentation of the
subsequent year’s financial statements. According to Rena, Guneren and Ozkul (2016), a
company is expected to review its financial statements with respect to the concerns that have
been raised by the auditor and restate these s...

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Anonymous
awesome work thanks

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