Part I Deliverable Length: 1,000–1,200 words & Part II Deliverable Length: 800–1,000 words

Key Assignment

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: 1,000–1,200 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

Part II

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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