ACC 403 Week 8 Assignment 2

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- 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:
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- name, the professor- 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- 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.
Points: 280
Assignment 2: Audit Planning and Control
Criteria
Unacceptable Below 60% F
Meets Minimum Expectations 60-69% D
Fair 70-79% C
Proficient 80-89% B
Exemplary 90-100% A
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. Weight: 15%
Did not submit or incompletely outlined the critical steps inherent in planning an audit and designing an effective audit program. Did not submit or incompletely provided specific details of the actions that the company should undertake during planning and designing the audit program, based upon the type of company selected.
Insufficiently outlined the critical steps inherent in planning an audit and designing an effective audit program. Insufficiently provided specific details of the actions that the company should undertake during planning and designing the audit program, based upon the type of company selected.
Partially outlined the critical steps inherent in planning an audit and designing an effective audit program. Partially provided specific details of the actions that the company should undertake during planning and designing the audit program, based upon the type of company selected.
Satisfactorily outlined the critical steps inherent in planning an audit and designing an effective audit program. Satisfactorily provided specific details of the actions that the company should undertake during planning and designing the audit program, based upon the type of company selected.
Thoroughly outlined the critical steps inherent in planning an audit and designing an effective audit program. Thoroughly provided specific details of the actions that the company should undertake during planning and designing the audit program, based upon the type of company selected.
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. Weight: 15%
Did not submit or incompletely examined at least two (2) performance ratios that you would use in order to determine which analytical tests to perform. Did not submit or incompletely identified the accounts that you would test; did not submit or incompletely selected at least three (3) analytical procedures that you would use in your audit.
Insufficiently examined at least two (2) performance ratios that you would use in order to determine which analytical tests to perform. Insufficiently identified the accounts that you would test; insufficiently selected at least three (3) analytical procedures that you would use in your audit.
Partially examined at least two (2) performance ratios that you would use in order to determine which analytical tests to perform. Partially identified the accounts that you would test; partially selected at least three (3) analytical procedures that you would use in your audit.
Satisfactorily examined at least two (2) performance ratios that you would use in order to determine which analytical tests to perform. Satisfactorily identified the accounts that you would test; satisfactorily selected at least three (3) analytical procedures that you would use in your audit.
Thoroughly examined at least two (2) performance ratios that you would use in order to determine which analytical tests to perform. Thoroughly identified the accounts that you would test; thoroughly selected 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. Weight: 15%
Did not submit or incompletely analyzed the balance sheet and income statement of the company that you have selected; did not submit or incompletely outlined your method for evidence collection which included, but was not limited to, the type of evidence to collect and the manner in which you would determine the sufficiency of the evidence.
Insufficiently analyzed the balance sheet and income statement of the company that you have selected; insufficiently outlined your method for evidence collection which included, but was not limited to, the type of evidence to collect and the manner in which you would determine the sufficiency of the evidence.
Partially analyzed the balance sheet and income statement of the company that you have selected; partially outlined your method for evidence collection which included, but was not limited to, the type of evidence to collect and the manner in which you would determine the sufficiency of the evidence.
Satisfactorily analyzed the balance sheet and income statement of the company that you have selected; satisfactorily outlined your method for evidence collection which included, but was not limited to, the type of evidence to collect and the manner in which you would determine the sufficiency of the evidence.
Thoroughly analyzed the balance sheet and income statement of the company that you have selected; thoroughly outlined your method for evidence collection which included, but was not 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. Weight: 15%
Did not submit or incompletely discussed the audit risk model; did not complete or incompletely ascertained which sampling or non-sampling techniques you would use in order to establish your preliminary judgment about materiality. Did not submit or incompletely justified your response.
Insufficiently discussed the audit risk model; insufficiently ascertained which sampling or non-sampling techniques you would use in order to establish your preliminary judgment about materiality. Insufficiently justified your response.
Partially discussed the audit risk model; partially ascertained which sampling or non-sampling techniques you would use in order to establish your preliminary judgment about materiality. Partially justified your response.
Satisfactorily discussed the audit risk model; satisfactorily ascertained which sampling or non-sampling techniques you would use in order to establish your preliminary judgment about materiality. Satisfactorily justified your response.
Thoroughly discussed the audit risk model; thoroughly ascertained which sampling or non-sampling techniques you would use in order to establish your preliminary judgment about materiality. Thoroughly justified 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. Weight: 15%
Did not submit or incompletely outlined the primary responsibilities of the audit firm after it issues the report in question, assuming that the end result is an unqualified audit report.
Insufficiently outlined the primary responsibilities of the audit firm after it issues the report in question, assuming that the end result is an unqualified audit report.
Partially outlined the primary responsibilities of the audit firm after it issues the report in question, assuming that the end result is an unqualified audit report.
Satisfactorily outlined the primary responsibilities of the audit firm after it issues the report in question, assuming that the end result is an unqualified audit report.
Thoroughly outlined the primary responsibilities of the audit firm after it issues the report in question, assuming that the end result is an unqualified audit report.
6. 2 references (or number in the assignment) Weight: 5%
No references provided
Does not meet the required number of references, and / or references are of poor quality.
Meets the required number of references; some or all references poor quality choices.
Meets number of required references; all references high quality choices.
Exceeds number of required references; all references high quality choices.
7. Writing Mechanics, Grammar, and Formatting Weight: 5%
Serious and persistent errors in grammar, spelling, punctuation, or formatting.
Numerous errors in grammar, spelling, and punctuation.
Partially free of errors in grammar, spelling, punctuation, or formatting.
Mostly free of errors in grammar, spelling, punctuation, or formatting.
Error free or almost error free grammar, spelling, punctuation, or formatting.
8. Appropriate use of APA in-text citations and reference section (if applicable, might not apply to some 100 level courses such as ACC100) Weight: 5%
Lack of in-text citations and / or lack of reference section.
In-text citations and references are given, but not in APA format.
In-text citations and references are provided, but they are only partially formatted correctly in APA style.
Most in-text citations and references are provided, and they are generally formatted correctly in APA style.
In-text citations and references are error free or almost error free and consistently formatted correctly in APA style.
9. Information Literacy/Integration of Sources Weight: 5%
Serious errors in the integration of sources, such as intentional or accidental plagiarism, or failure to use in-text citations.
Sources are rarely integrated using effective techniques of quoting, paraphrasing, and summarizing.
Sources are partially integrated using effective techniques of quoting, paraphrasing, and summarizing.
Sources are mostly integrated using effective techniques of quoting, paraphrasing, and summarizing.
Sources are consistently integrated using effective techniques of quoting, paraphrasing, and summarizing.
10. Clarity and Coherence of Writing Weight: 5%
Information is confusing to the reader and fails to include reasons and evidence that logically support ideas.
Information is somewhat confusing with not enough reasons and evidence that logically support ideas.
Information is partially clear with minimal reasons and evidence that logically support ideas.
Information is mostly clear and generally supported with reasons and evidence that logically support ideas.
Information is provided in a clear, coherent, and consistent manner with reasons and evidence that logically support ideas.