Homework
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 to 1,200 words
Read the annual report and other news items related to the company, and then complete the following tasks.
1) Create a framework for your audit procedure using the Audit Risk Approach. Your framework should include the following:
a. At least 3 examples of how you would mitigate risk in your audit
b. At least 3 accounts or areas that you would focus your attention on for this audit
c. An outline of tests and procedures that you would employ based on your company
d. A detailed analysis of the sampling techniques that you would utilize for each of the 3 accounts or areas that you chose
e. An explanation of the type(s) of documentation that you would require as audit evidence
2) Discuss the levels of assurance that can be provided on audit reports.
3) Explain how the internal controls of a company can impact the overall business.
a. Define 2 internal control areas that you would focus on with your business
Part II
Length: 800 to 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:
1) Explain the process that you will utilize to formulate your audit opinion.
2) Discuss the methodology that you would employ if misstatements are discovered.
3) Explain the common ethical issues that you could encounter during an audit.
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.