ACT 450 Colorado State University Analytical Audit Procedures Paper & Excel Worksheet
This professor is very tough in grading, and I need this by Thursday the 2nd. This is 33% of the entire course grade, and I also have grade in borderline, so the outcome of this project determines my grade for the course. Other Requirements from the first 6 weeks of feedback and additional requirements discussed during live session & tips regarding portfolio projects are:Keep within 8-10 pages in lengthPlease review the rubric thoroughly and provide enough analysis – ex) discuss and provide in-depth supporting analysis for variances you see, and other analysisAnswer all questions and clearly mark them throughout the paper.Clearly show your work, audit trail, and formulas in excel portion, so I can see your thought process.APA 7th Edition - All authors need to be listed the first time, then et al can be used.Error free grammar/mechanical paperAS # (Auditing Standard # from PCAOB site must be correctly sited and title noted when applicable)It says 4 minimum sources, but she wants more than 4 peer reviewed articles within last 5 years & available on web in addition to textbook. Please use and cite scholarly sources only.Try not to rely too much on one source in one paragraph. I you have four sentences in a paragraph and three of them are directly cited from that source, that’s too much reliance on one source, so consider adding your analysis or your verbiage to it. This will also help you reduce Turnitin similarity score, and not run into risk of plagiarizing. All tables should be added following APA format – number for your table, title, and standard APA formatting. I have taken couple points off for just copying & pasting from excel without following APA format. Add tables from excel portion as applicable and as you describe them in your analysis. Please provide clear & good concluding paragraph.Option #1: Data Analytics and ExcelReference the Excel file containing financial information from footnote disclosures and substantive analytical procedures using data analytics from the Module 8 folder. PharmaCorp will be used as the main analytical procedure tasks you will want to focus on for this assignment. The other companies, Novartell and AstraZoro, will be used as industry comparisons.The opportunity exists in this case to perform planning and substantive analytical procedures for accounts in the revenue cycle. You may assume that the 2015 financial information is unaudited, but the information from 2014 has been audited. Consider the following trends and characteristics of the pharmaceutical industry and for PharmaCorp in particular as you work on this case:Following many years of dominant financial performance by companies in the United States, Europe and Canada, increased competition is arising from organizations in emerging economies such as Brazil, India, and China.Significant uncertainty exists in the industry due to regulation covering health-care and government reimbursements related to certain procedures and prescribed pharmaceuticals.Policy makers in the industry and governments increasingly:Mandate necessary prescripts for patientsFocus on prevention instead of treatment regimes, thereby leading to changes in demand for some productsAnticipated growth in the industry is expected to be 5% to 7% in 2016 compared with 4% to 5% in the prior year as stated by leading industry analysts.Pharmacorp started and executed a significant cost reduction initiative aimed at improving efficiency, reducing research and development costs, and eliminating corporate overhead in 2014.PharmaCorp’s credit policies has remained the same over the past several years. Their credit policies are considered stringent in their industry, and they have been criticized on occasion for these policies in relation to their competitors.Two of the companies most popular pharmaceuticals, Sistosis and Vigarvox, are no longer patented as of the last quarter of 2015 and are now facing competition from generic alternatives.Required:Part I: Planning Analytical ProceduresStep 1: Identify Proper Analytical Procedures. The senior auditor suggests you should use these ratios (on the financial statement level) for planning the analytical procedures as part of the revenue cycle at the company:Gross margin: (revenues-cost of sales)/revenuesTurnover of receivables: (revenues/average accounts receivable); use the ending accounts receivableReceivables as a percentage of current assets: (accounts receivable/total current assets)Receivables as a percentage of total assets: (accounts receivable/total assets)Allowance for uncollectible accounts as a percentage of accounts receivable: (allowance/accounts receivable)Identify other relationships or trends that are relevant as part of the planning analytics. Discuss your reasons for your choices.Step 2: Evaluate the Data Reliability When Developing Expectations. The data you will use to develop expectations in the revenue cycle has been deemed reliable by the audit staff.Discuss the likely factors the audit team will consider when making this determination.Step 3: Develop expectations for accounts in the revenue cycle and for the ratios from Step # 1 that you deem as relevant. Since this is a planning analytical procedure, the expectations are not set at a high a high level of precision. Indicate if you expect a ratio to rise, fall, or remain the same, and explain the level of any anticipated rises or falls, or the range of the ratio. Pharma Corp’s financial information is in the first tab of the Excel worksheet, while the information for Novartell and AstraZoro is available in the last two tabs of the file.Consider both historical trends of Pharmcorp and the industry on the whole.Step 4 and Step 5: Define and Identify Substantial Unanticipated Variances. Refer to the text for guidance on materiality.Apply those guidelines to Step 4 of planning the analytical procedures as part of the revenue cycle for Pharmacorp. Define the meaning of a significant difference. Discuss your reasons for these choices. Discuss the qualitative materiality considerations in relation to this case.Once you have determined the levels of difference you would consider noteworthy, calculate the Step 1 ratios (and any additional trend or ration analysis you deemed necessary), based on Pharmacorp’s financial statement figures. Identify the ratios where you expect a significant difference.Step 6 and Step 7: Investigate Substantial Unanticipated Variances and Ensure Appropriate Documentation.Discuss the accounts or relationships you feel should be investigated further using substantive audit procedures. Discuss your reasons for these choices.Describe the information that should be a part of the auditor’s report or files.Part II: Substantive Analytical ProceduresYou will see three tabs in the Excel file that should be reviewed: the Pharmacorp Segment Information, Pharmacorp’s Geographic Information, and Pharmacorp’s Other Revenue Information. These tabs display excerpts from Pharma Corp’s footnote disclosures regarding segment, geographic, and other revenue information. Examine these disclosures and discuss the operating segments and geographic regions where the company does business.Which operating segments generate the most revenue for the company and may be considered the most important? Which regions are the most important to the organization from geographic standpoint? List the three most important products manufactured by Pharmacorp? Discuss any trends you notice in relation to revenue generation for each of these different categories.Explain the different types of ratio analysis that could be conducted in substantive analytical procedures using the data from the segment, geographic, and other revenue information. An example would be the R&D expenses as a percentage of revenues. How would these substantive analytics be different from the planning analytics? Discuss the trends and relationships that are relevant, and what are the implications in relation to further substantive testing?Your written response paper should be 8-10 pages in length. It should be completed in Word and Excel. The Word portions should follow the APA format, according to CSU-Global Guide to Writing and APA Requirements (Links to an external site.). Include a title page and reference page. Use four (4) outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.RubricACT450 Mod 8 PPCriteriaRatingsPtsThis criterion is linked to a Learning OutcomeRequirements100.0 to >80.0 ptsMeets ExpectationIncludes all of the required components, as specified in the assignment.80.0 to >60.0 ptsApproaches ExpectationIncludes most of the required components, as specified in the assignment.60.0 to >40.0 ptsBelow ExpectationIncludes some of the required components, as specified in the assignment.40.0 to >0 ptsLimited EvidenceIncludes few of the required components, as specified in the assignment.100.0 ptsThis criterion is linked to a Learning OutcomeContent100.0 to >80.0 ptsMeets ExpectationDemonstrates strong or adequate knowledge of data analytics in auditing; correctly represents knowledge from the readings and sources.80.0 to >60.0 ptsApproaches ExpectationSome significant but not major errors or omissions in demonstration of knowledge.60.0 to >40.0 ptsBelow ExpectationMajor errors or omissions in demonstration of knowledge.40.0 to >0 ptsLimited EvidenceFails to demonstrate knowledge of the materials.100.0 ptsThis criterion is linked to a Learning OutcomeAnalysis50.0 to >40.0 ptsMeets ExpectationProvides strong or adequate thought, insight and analysis of concepts and applications.40.0 to >30.0 ptsApproaches ExpectationSome significant but not major errors or omissions in thought, insight and analysis.30.0 to >20.0 ptsBelow ExpectationMajor errors or omissions in thought, insight and analysis.20.0 to >0 ptsLimited EvidenceFails to demonstrate thought, insight and analysis.50.0 ptsThis criterion is linked to a Learning OutcomeSources / Examples25.0 to >20.0 ptsMeets ExpectationSources or examples meet required criteria and are well chosen to provide substance and perspectives on the issue under examination.20.0 to >15.0 ptsApproaches ExpectationSources or examples meet required criteria but are less‐than adequately chosen to provide substance and perspectives on the issue under examination.15.0 to >10.0 ptsBelow ExpectationSources or examples meet required criteria and are poorly chosen to provide substance and perspectives on the issue under examination.10.0 to >0 ptsLimited EvidenceSource or example selection and integration of knowledge from the course is clearly deficient.25.0 ptsThis criterion is linked to a Learning OutcomeDemonstrates college-level proficiency in organization, grammar and style.25.0 to >20.0 ptsMeets ExpectationProject is clearly organized, well written, and in proper format as outlined in the assignment. Strong sentence and paragraph structure; few errors in grammar and spelling.20.0 to >15.0 ptsApproaches ExpectationProject is fairly well organized and written, and is in proper format as outlined in the assignment. Reasonably good sentence and paragraph structure; significant number of errors in grammar and spelling.15.0 to >10.0 ptsBelow ExpectationProject is poorly organized; does not follow proper paper format. Inconsistent to inadequate sentence and paragraph development; numerous errors in grammar and spelling.10.0 to >0 ptsLimited EvidenceProject is not organized or well written, and is not in proper paper format. Poor quality work; unacceptable in terms of grammar and spelling.25.0 ptsThis criterion is linked to a Learning OutcomeDemonstrates proper use of APA style25.0 to >20.0 ptsMeets ExpectationProject contains proper APA formatting, according to the CSU-Global Guide to Writing and APA, with no more than one significant error.20.0 to >15.0 ptsApproaches ExpectationFew errors in APA formatting, according to the CSU-Global Guide to Writing and APA, with no more than two to three significant errors.15.0 to >10.0 ptsBelow ExpectationSignificant errors in APA formatting, according to the CSU-Global Guide to Writing and APA, with four to five significant errors.10.0 to >0 ptsLimited EvidenceNumerous errors in APA formatting, according to the CSU-Global Guide to Writing and APA, with more than five significant errors.25.0 ptsTotal Points: 325.0PreviousNext
