Description
Choose a publicly traded company, and research its annual report. (If you cannot find it online, you can go to the U.S. securities and Exchange Commission Web site and locate a copy). These results have been audited, but for this exercise, view them as if they were not.
Part I
Deliverable Length: 1,000–1,200 words
Read the annual report and other news items related to the company, and then complete the following tasks.
- Create a framework for your audit procedure using the Audit Risk Approach. Your framework should include the following:
- At least 3 examples of how you would mitigate risk in your audit
- At least 3 accounts or areas that you would focus your attention on for this audit
- An outline of tests and procedures that you would employ based on your company
- A detailed analysis of the sampling techniques that you would utilize for each of the 3 accounts or areas that you chose
- An explanation of the type(s) of documentation that you would require as audit evidence
- Discuss the levels of assurance that can be provided on audit reports.
- Explain how the internal controls of a company can impact the overall business.
- Define 2 internal control areas that you would focus on with your business
Part II
Deliverable Length: 800–1,000 words
Prepare an audit report for your company. Be sure to include the key elements that must be covered in a standard audit report, and discuss the circumstances surrounding each of the following:
- Explain the process that you will utilize to formulate your audit opinion.
- Discuss the methodology that you would employ if misstatements are discovered.
- Explain the common ethical issues that you could encounter during an audit.
Explanation & Answer
Hello, will post part 2 ASAP.
Audit Procedure
When creating a framework of the audit, first, the auditor should be much familiar with the
company and its environment. Understanding the company and its environment helps the auditor
to know the events, activities, and the conditions in the company and anything that might be
expectable to cause any effect on the organization. An internal audit for any company is critical
to the entrepreneurs because it is designed to add value in the operations in an organization.
Moreover, internal audit in any company provides automatic control evaluations for any risk
which might affect the company. The auditor is required to understand the financial objectives
and the operational objectives desired by the organization for the audit. Therefore, this paper
outlines the review of the United States Security and Exchange Company.
United States Security and Exchange Commission has mission statements in their organization
which helps in the facilitation of fair, competitive, orderly and efficient market. The main aim of
the establishment of the Security and Exchange Commission is to protect investors in the
country. The company has laws and regulations which derives a simple concept of protecting the
investors in both large institution and private bus...
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