Assignment: Audit Planning and Control
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:
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.
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.
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.
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.
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.
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:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
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.
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Assignment 2: Audit Planning and Control
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Audit Planning and Control: A Case of Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. is one of the leading retail store outlets in U.S, with retail stores in various parts of the world. Carrying out an audit planning and control for Wal-Mart will probably be one of the intriguing jobs for any accountant and this is the reason the company was chosen for the sake of this paper. However, for auditing purposes, there is need to define critical steps for planning and design of an effective audit program.
Critical Steps Important for Planning and Design of an Effective Audit Program
Audit planning amplifies the general requirement that an effective audit program must be planned for effective, efficient and timely audit to be done. Gupta (2005) asserts that audit planning facilitates identification of problems, expedites completion of work, allows proper utilization of assistants, allows coordination of work done by auditors and experts and allows devotion of appropriate attention to important areas. Among the elements of audit planning is the identification of critical steps that are important for audit planning and design. The following are the critical steps that are important for planning and design of an effective audit program for Wal-Mart Inc. There is need to consider the duties and responsibilities as defined by the terms of agreements between Wal-Mart Inc., and the external
