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.
Deliverable Length: 1,000–1,200 words
Read the annual report and other news items related to the company, and then complete the following tasks.
Create a framework for your audit procedure using the Audit Risk Approach. Your framework should include the following:
At least 3 examples of how you would mitigate risk in your audit
At least 3 accounts or areas that you would focus your attention on for this audit
An outline of tests and procedures that you would employ based on your company
A detailed analysis of the sampling techniques that you would utilize for each of the 3 accounts or areas that you chose
An explanation of the type(s) of documentation that you would require as audit evidence
Discuss the levels of assurance that can be provided on audit reports.
Explain how the internal controls of a company can impact the overall business.
Define 2 internal control areas that you would focus on with your business
Deliverable Length: 800–1,000 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:
Explain the process that you will utilize to formulate your audit opinion.
Discuss the methodology that you would employ if misstatements are discovered.
Explain the common ethical issues that you could encounter during an audit.
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