ACC 403 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 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.

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. 

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