ACC 403 Auditing Assignment 2. Audit Planning and Control

Assignment
2: 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 accounting 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.

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.