ACC403 Strayer Week 8 Assignment 2 Audit Planning And Control

Anonymous
timer Asked: Feb 22nd, 2019
account_balance_wallet $80

Question Description

Click the link above to submit your assignment.


Students, please view the "Submit a Clickable Rubric Assignment" in the Student Center.
Instructors, training on how to grade is within the Instructor Center.

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 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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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:

  • This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
  • 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.

Click here to view the grading rubric.


Assignment 1: What Business Entity Works Best?

Due Week 8 and worth 295 points

For Assignment 1, you will conduct research on https://www.irs.gov, consult your textbook, and refer to other similar, reputable resources on taxation. Your goal is to compare the three major forms of corporate organizations: partnerships, s-corporations, and corporations. You will then select a domestic organization, identify its entity type, and describe how the organization’s tax methods are detailed in its financial report.

To complete Assignment 1, write a four to five (4-5) page paper in which you do the following:

  1. Compare and contrast the tax rules and treatment applicable to those three forms of organization and the major way in which the tax treatment affects the shareholders or partners.
  2. Explain at least two reasons why a business owner might opt for one form of organization over another. Provide support for your rationale.
  3. Identify two sources of tax guidance (e.g. IRS code, Revenue Procedure) for each form of organization and how it defines a component of the tax policy for that form of organization.
  4. Research an organization by identifying its entity type (corporation, s-corporation, or partnership) and describe how that organization’s tax methods are detailed in their financial reports.
  5. Use at least three quality academic resources in this assignment. Note: Wikipedia and similar websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

  • This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
  • 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 source list are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  1. Analyze the concepts and tax treatment related to corporations, S corporations, exempt organizations, and partnerships.
  2. Examine the accounting concepts related to income taxes.
  3. Analyze the concepts of corporate formation, reorganization, earnings and profits distributions, and liquidations.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.

Tutor Answer

ChloeL134
School: University of Maryland

here we goLemme know in case of anythingAll the best and Goodbye

Running head: AUDITING

1

Auditing

Name

Course

Tutor

Date

AUDITING

2

Auditing

An Auditor should research on the audit area. This research will not only influence
the type of procedures but also determine the way of handling it. One has to establish whether
a business is fully computerised or uses a manual system. The internal processes should be
detailed and well organised, this includes understanding the type of business and the size of
the client business. A manufacturing company will conduct a different audit as compared to a
service or a hotel industry. Besides, an auditor has to maintain open proper communication
channels and networks. The flow of information between the auditing team and the company
stakeholders should be set. Communicating using face to face communication is a cheap and
efficient way. However, one could consider using mobile phones and emails. The scalar chain
of command within the auditing team has to be stipulated and set out.

Furthermore, the auditor could conduct a walkthrough on the various processes. The
audit team has to understand the procedures used by the company. Auditing rules and
regulations applying to an institution have to be detailed. Some of the issues that should be
understood are the organisational structure, the complexity of the processes and the nature of
the business. Mapping the risks in a company is another vital step. The kind of the market,
the size, the type of internal controls determines the chances in any organisation. The
weakness of the ICS identifies the areas that need attention. Obtaining data prior to the field
work is a crucial step. This facilitates analytical procedures and data analytics.

AUDITING

3

The fixed asset ratio is a performance ratio that an auditor uses. It is obtained by dividing
the revenues by the fixed assets. Besides, the operating cycle is the period that it takes from
the initial cash outlay to the production of goods, marketing, selling and receiving cash from
the customers. The sales per employee are obtained by dividing the sales by the number of
employees. One should establish the trends and the patterns of these performance ratios (Hay,
Knechel& Willekens, 2014). An auditor can use a variety of analytical procedures.
Comparison of one fiscal year to the other, calculation of the ratios and the trend lines are the
main ones used. Companies present annual statement that makes use of comparative analysis.
These criteria are used for the statement of financial position, the income statement, the
statement of cash flow and the changes in equity. An auditor should evaluate the adverse
variances and ask the relevant questions. One may also use the common size income
statement and balance sheet in their comparison.

Liquidity ratios and the leverage ratios indicate whether the business can meet its
financial obligations and ...

flag Report DMCA
Review

Anonymous
Thanks, good work

Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors