ACC 491 All Assignments
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ACC 491 Week 1 Textbook Problem 1-20, 1-21, 2-18, 2-20, 2-21 ACC 491 Week 2 Ethics, Legal Liability, Audit Responsibilities Quiz (Score 100%) ACC 491 Week 3 Scenario Assignment (Barnes & Noble) ACC 491 Week 3 Fraud Article Summary ACC 491 Week 3 Team Scenario Assignment (Amazon) ACC 491 Week 3 Team Scenario Assignment (Lockheed Martin) ACC 491 Week 4 Assignment Internal Control, COSO and SOX ACC 491 Week 4 Team Scenario Assignment Cheat Sheet on Evidence and Documentation ACC 491 Week 5 Team Assignment Scenario Assignment Summary (Barnes & Noble) ACC 491 Week 5 Team Assignment Scenario Assignment Summary (Amazon) ACC 491 Week 5 Team Assignment Scenario Assignment Summary (Apple)
ACC 491 Week 5 Fraud Auditing (2 Papers) -------------------------------------
ACC 491 Week 1 DQ 1
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The American Institute of Certified Public Accountants (AICPA) and the Institute of Internal Auditors (IIA) have positioned the auditing professions to become “assurance professions.� What is the difference between assurance services, attestation services, and auditing services? What are the economic issues that drive the increased demand for assurance services? What is one assurance engagement and one attestation engagement other than an audit of financial statements? What are the differences between the two? -------------------------------------
ACC 491 Week 1 DQ 2
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The ten Generally Accepted Auditing Standards (GAAS) provide the foundation for all other auditing standards and interpretations. What is the definition of the standard of “due professional care”, and how might a court decide whether an audit firm met the standard? Why is independence often considered the cornerstone of the auditing profession? Why were independence issues a primary concern of Congress when they developed the Sarbanes-Oxley Act? -------------------------------------
ACC 491 Week 1 Self Guided Quiz
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1. In your own words, define “Auditing.” 2. Discuss the importance of “Evidence” in auditing. 3. Define “Independence” and “Objectivity” as they relate to auditing. 4. Audits typically consist of three phases: Planning; Fieldwork; Reporting. Describe activities that accompany each phase. 5. Distinguish between Assurance and Attestation Services. 6. Describe the following types of Audits: a. Operational Audits b. Compliance Audits c. Financial Statement Audits
d. Informational Technology Audits (may need to go outside the text to address this) 7. Discuss the following types of Auditors: a. Auditors Working for CPA Firms b. Governmental Auditors (e.g. GAO, IRS, health inspectors) c. Internal Auditors Identify the roles CPA firms play in society. 8. Briefly explain Sarbanes-Oxley (SOX) and the role the Securities and Exchange Commission (SEC) plays in regulating audits. 9. What is the role of the AICPA? The PCAOB? The Institute of Internal Auditors (IIA)? 10. Summarize the 10 components of Generally Accepted Auditing Standards (GAAS) 11. What are SAS, and for what are they used? 12. True or False – CPA firms are required to engage in quality control efforts of its audits? Why or Why not? 13. What is a Peer Review and how and when are they performed? 14. Why does government often have different auditing and accounting standards? -------------------------------------
ACC 491 Week 1 Textbook Problem 1-20, 1-21, 2-18, 2-20, 2-21
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Write a brief response, 30 to 90 words for each question. Text Problem 1-20 • Distinguish between auditing and accounting. Text Problem 1-21 • Differentiate between the three main types of audits and auditors. Text Problem 2-18 Text Problem 2-21 Text Problem 2-20
1-20 (Objective 1-7) Five college seniors with majors in accounting are discussing alternative career plans. The first senior plans to become an internal revenue agent because his primary interest is income taxes. He believes the background in tax auditing will provide him with better exposure to income taxes than will any other available career choice. The second senior has decided to go to work for a CPA firm for at least 5 years, possibly as a permanent career. She believes the variety of experience in auditing and related fields offers a better alternative than any other available choice. The third senior has decided on a career in internal auditing with a large industrial company because of the many different aspects of the organization with which internal auditors become involved. The fourth senior plans to become an auditor for the GAO because she believes that this career will provide excellent experience in computer risk assessment techniques. The fifth senior would like to ultimately become a certified fraud examiner but is not sure where the best place is to begin his career so that he can achieve this long-term goal.
• a. What are the major advantages and disadvantages of each of the four types of auditing careers? b. What do you think is the best early career choice for the senior interested in ultimately becoming a certified fraud examiner? c. What other types of auditing careers are available to those who are qualified? 1-21 (Objectives 1-6, 1-7) In the normal course of performing their responsibilities, auditors often conduct audits or reviews of the following: • 1. Federal income tax returns of an officer of the corporation to determine whether he or she has included all taxable income in his or her return. 2. Financial statements for use by stockholders when there is an internal audit staff. 3. A bond indenture agreement to make sure a company is following all requirements of the contract. 4. Internal controls at a casino to ensure the casino is in compliance with federal and state regulations. 5. Computer operations of a corporation to evaluate whether the computer center is being operated as efficiently as possible. 6. Annual statements for the use of management. 7. Operations of the IRS to determine whether the internal revenue agents are using their time efficiently in conducting audits. 8. Statements for bankers and other creditors when the client is too small to have an audit staff. 9. Financial statements of a branch of the federal government to make sure that the statements present fairly the actual disbursements made during a period of time. 10. Federal income tax returns of a corporation to determine whether the tax laws have been followed.
11. The computer operations of a large corporation to evaluate whether the internal controls are likely to prevent misstatements in accounting and operating data. 12. Disbursements of a branch of the federal government for a special research project to determine whether the expenditures were consistent with the legislative bill that authorized the project. 2-18 (Objective 2-6) Sarah O’Hann enjoyed taking her first auditing course as part of her undergraduate accounting program. While at home during her semester break, she and her father discussed the class and it was clear that he didn’t really understand the nature of the audit process as he asked the following questions: a. What is the main objective of the audit of an entity’s financial statements? b. The audit represents the CPA firm’s guarantee about the accuracy of the financial statements, right? c. Isn’t the auditor’s primary responsibility to detect all kinds of fraud at the client? d. Given the CPA firm is auditing financial statements, why would they need to understand anything about the client’s business? e. What does the auditor do in an audit other than verify the mathematical accuracy of the numbers in the financial statements? 2-21 (Objective 2-6) Ray, the owner of a small company, asked Holmes, a CPA, to conduct an audit of the company’s records. Ray told Holmes that an audit was to be completed in time to submit audited financial statements to a bank as part of a loan application. Holmes immediately accepted the engagement and agreed to provide an auditor’s report within 3 weeks. Ray agreed to pay Holmes a fixed fee plus a bonus if the loan was granted. Holmes hired two accounting students to conduct the audit and spent several hours telling them exactly what to do. Holmes told the students not to spend time reviewing internal controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that
support Ray’s financial statements. The students followed Holmes’s instructions and after 2 weeks gave Holmes the financial statements, which did not include footnotes. Holmes reviewed the statements and prepared an unqualified auditor’s report. The report did not refer to generally accepted accounting principles or to the consistent application of such principles. -------------------------------------
ACC 491 Week 2 DQ 1
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What is the purpose of engagement planning? What critical information should the auditor consider during engagement planning? How will this information affect the scope of the audit? -------------------------------------
ACC 491 Week 2 DQ 2
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What are the components of the audit risk model? How does the audit risk model impact an audit plan? -------------------------------------
ACC 491 Week 2 Ethics, Legal Liability, Audit Responsibilities Quiz (Score 100%)
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Question 1 One of the main reasons people act unethically is that they choose to act selfishly. True False
Question 2 Which of the following best describes the reason why an independent auditor reports on financial statements?
Poorly designed internal controls may be in existence.
A misstatement of account balances may exist and is generally corrected as the result of the independent auditor's work. Different interests may exist between the company preparing the statements and the persons using the statements. A misappropriation of assets may exist, and it is more likely to be detected by independent auditors.
Question 3 Because of the risk of material misstatement, an audit should be planned and performed with an attitude of
independent integrity. professional skepticism. impartial conservatism. objective judgment. Question 4 Recklessness in the case of an audit is present if the auditor knew an adequate audit was not done but still issued an opinion, even though there was no intent to deceive financial statement users. This description is the legal term for:
fraud. constructive fraud. gross negligence. ordinary negligence.
Question 5 In the performance of an audit, a CPA: must exercise constructive professional care in the performance of their audit responsibilities. is legally liable for detecting an immaterial client fraud. must strictly follow GAAP for privately held clients. must exercise due professional care in the performance of their audit responsibilities. Question 6 The major reason an independent auditor gathers audit evidence is to
assess control risk. form an opinion on the financial statements. detect fraud. evaluate management.
Question 7 Ethics are: a set of moral principles or values. not formed by life experiences. always incorporated in laws. needed in the professions, but is not needed for society in general.
Question 8
If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor:
should notify regulators of the circumstances. should withdraw from the engagement. should request an increase in audit fees so that more resources can be used to conduct the audit. has the responsibility of notifying financial statement users through the auditor's report. should notify regulators of the circumstances.
Question 9 The objective of an audit of the financial statements is an expression of an opinion on: the fairness of the financial statements in all material respects. the accuracy of the financial statements. the accuracy of the annual report. the fairness of the financial statements in all material respects. the accuracy of the balance sheet and income statement. Question 10 ________ means that a person acts according to conscience, regardless of the situation.
Respect
Fairness Integrity Caring Question 11 How does the prudent person concept affect the liability of the auditor?
The prudent person concept states that a person is responsible for conducting a job in good faith, integrity, and with qualifications and attention that prevents errors. Therefore, the auditor is expected to conduct an audit using such due care that they can guarantee the accuracy of the financial statements. The prudent person concept states that third parties can confidently rely on the independence of the auditors in their work. However there is liability to the auditors if they hide their lack of independence or they mislead the third parties. The prudent person concept states that a person is responsible for conducting a job in good faith and with integrity, but is not infallible. Therefore, the auditor is expected to conduct an audit using due care, but does not claim to be a guarantor or insurer of financial statements. The prudent person concept states that auditors are responsible for the accuracy of the financial statements that are prepared, but only based on his or her good faith. Therefore, the auditor must keep up with accounting standards to ensure compliance. Question 12
What is an ethical dilemma?
An ethical dilemma is a situation that a person faces in which a decision must be made about the appropriate behavior. An ethical dilemma is a synonym for a legal dilemma. None of the above An ethical dilemma in accounting occurs when an error in the financial statement has been discovered.
Question 13 What are the six core ethical values described by the Josephson Institute?
(1) Compassion, (2) Respect, (3) Loyalty, (4) Fairness, (5) Unbiased, and (6) Trustworthiness (1) Trustworthiness, (2) Respect, (3) Responsibility, (4) Fairness, (5) Caring, and (6) Citizenship (1) Caring, (2) Compassion, (3) Friendliness, (4) Respect, (5) Trustworthiness, and (6) Morality (1) Respect, (2) Loyalty, (3) Fairness, (4) Unbiased, (5) Compassion, and (6) Caring Question 14 Distinguish between "fraud" and "constructive fraud."
The difference between fraud and constructive fraud is that fraud can occur when there is a misstatement due to recklessness of the auditor whereas in constructive fraud the intent to deceive will cause extensive harm damaging the company.
The difference between fraud and constructive fraud is that in fraud the wrongdoer intends to deceive another party whereas in constructive fraud there is a lack of intent to deceive or defraud The difference between fraud and constructive fraud is that fraud can occur when there is a misstatement due to recklessness of the auditor whereas in constructive fraud the intent to deceive will cause extensive harm damaging the company. The difference between fraud and constructive fraud is that in fraud there is no intent to deceive or do harm; however, in constructive fraud a misstatement is made where there is knowledge of its falsity. The difference between fraud and constructive fraud is that fraud is the absence of reasonable care that can be expected of a person in a set of circumstances; however constructive fraud is a lack of even the slightest care that can be expected of a person. Question 15 Auditors accumulate evidence to: reach a conclusion about the fairness of the financial statements. satisfy the requirements of the Securities Acts of 1933 and 1934. determine if the financial statements are correct. defend themselves in the event of a lawsuit. reach a conclusion about the fairness of the financial statements.
Question 16 Which of the following best describes the reason why an independent auditor reports on financial statements?
Poorly designed internal controls may be in existence.
Different interests may exist between the company preparing the statements and the persons using the statements. A misstatement of account balances may exist and is generally corrected as the result of the independent auditor's work. A misappropriation of assets may exist, and it is more likely to be detected by independent auditors. Question 17 If an auditor fails to fulfill a certain requirement in the contract, they may be guilty of: constructive fraud. breach of contract. criminal neglect. contract fraud. -------------------------------------
ACC 491 Week 3 DQ 1
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How are analytical procedures used in an audit engagement? What premise underlies the use of analytical procedures in auditing? What sources of information can an auditor use to develop expectations? Give examples. -------------------------------------
ACC 491 Week 3 DQ 2
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Why do auditors have to consider the internal controls of the organization? What are some key elements of internal control? Which are the most important? How will the auditor have to modify the audit program if the internal controls are deemed inadequate to support management assertions? -------------------------------------
ACC 491 Week 3 Fraud Article Summary
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Research an article in the University Library or from another credible source. The article should be about a recent accounting fraud incident within a company. Summarize the article in 350 to 525 words. Describe any measures you believe could have been used to avoid the problems presented in the article. Click the Assignment Files tab to submit your assignment in a MicrosoftÂŽ Word document. -------------------------------------
ACC 491 Week 3 Scenario Assignment (Barnes & Noble)
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You are a senior manager for the highly successful regional CPA firm of Fine, Dee, Evah, Dense, LLP (Fine). Since its inception nearly 30 years ago, Fine’s audit practice has exclusively consisted of auditing private and not-for-profit organizations. Recently, the partners have been considering an opportunity to audit a publically-traded company for the company your team has selected.
The primary reason Fine has not heretofore ventured into auditing publically-traded companies is because of the potential risk and legal liability associated with auditing public companies. However, Fine has been a bit stagnant, business-wise, for the past few years, and some of the older and more risk-adverse partners are beginning to retire. Consequently, the lure of the often-lucrative and prestigious opportunity to audit a public company has become too hard to resist, so the partners have decided to pursue the chance to audit this company. On a beautiful early-September morning you are called into the senior partner’s office and told you and your team have been selected to lead the first-ever effort to audit a publically-traded company for Fine. You are honored, but also know auditing a public company is a bit more tricky and complicated than auditing private and not-for-profit organizations. Fortunately, the senior partner had considerable experience early in his career with another firm in auditing public companies and told you he would be with you all the way. Relieved, you asked him what he wanted you to do. He tossed you the most recent Form 10-K of the company you selected and gave you the following assignments: Review and discuss the Form 10-K for the company you have selected. Create a report that will have 4 sections. Section 1, Initial Risk Assessment. Hint: The business and risk information is usually found in the first part of the Form 10-K. However, for the risks, do not simply restate what is in the Form 10-K. Think like a senior manager at a CPA firm – what accounts (Cash, A/R, Revenue, Inventory, etc.) might be the
most potentially risky and why? For example, an airline might not have the same inventory considerations found with a retail outlet like Wal-Mart. In 700-to 1,050-words: Describe the business briefly. Assess any risks you may encounter in auditing this company. General Audit Concerns • The requisite background you and your team will need to adequately audit this company. • Time it will take to adequately audit this client. General Business Concerns . • Has the company you’re auditing recently increased or decreased their operations due to mergers or sales of parts of the business? • Are they a conglomerate with lots of disparate kinds of goods and services, or are they a simple straight-forward type of business operating in a relatively small location? • Are operating supplies (such as jet fuel or specialty plastics) in short supply or subject to wild pricing swings on the open market? • What about overseas operations – are they operating in dangerous parts of the world? • How robust or intense is the competition in this particular industry? • Has their top management recently been replaced and if so, why? • Is seasonality a factor for this company? How does that affect revenue and other operations? Describe the following issues: Ethics and Legal Issues
• The ethics and sophistication of top management and cultures where the company operates. • Have there been significant auditing or accounting issues raised in the recent past? • Did they have disputes with their previous audit firm? • Is this company or industry particularly susceptible to lawsuits or other legal proceedings? Evaluate the regulatory and compliance requirements of this company: Regulatory and Compliance Concerns • The compliance requirements of this company. • Is it subject to a high-level of governmental regulation? • Are employees unionized? Are they generally compliant with Sarbanes-Oxley and other regulatory rules?
Section 2, Analytical Procedures Based on TABLE 8-1, p. 220 Examples of Planning Analytical Procedures and the sections on Analytical Procedures in the text, select three ratios (e.g. Current Ratio, Inventory Turnover, Debt to Equity, Return on Assets, etc.), calculate these ratios for your company and a competitor for the most recent year, and compare the results. Write a 350-to 525-word analysis of your findings. Note that these ratios are found in the Common Financial Ratios section of Chapter 8.
Section 3, Materiality and Risk The senior partner wants to confirm your understanding of key concepts. Summarize each concept 90-175-words each. • Materiality • Misstatement • Audit Risk • Audit Risk Model • Inherent Risk • Relationship of Risk to Audit Evidence
Section 4, Audit Tests The reading in Chapter 13 (p. 402-407) describes five types of audit tests of financial statements: (1) Risk Assessment Procedures (2) Test of Controls (3) Substantive Tests of Transactions (4) Analytical Procedures (5) Tests of Details of Balances. In 350- to 700-words: Identify which tests are best suited for the company you selected and why. Explain why some tests are not suitable. -------------------------------------
ACC 491 Week 3 Team Scenario Assignment (Amazon)
For more course tutorials visit www.newtonhelp.com Week 3 Team Assignment Document You are a senior manager for the highly successful regional CPA firm of Fine, Dee, Evah, Dense, LLP (Fine). Since its inception nearly 30 years ago, Fine’s audit practice has exclusively consisted of auditing private and not-for-profit organizations. Recently, the partners have been considering an opportunity to audit a publically-traded company for the company your team has selected. The primary reason Fine has not heretofore ventured into auditing publically-traded companies is because of the potential risk and legal liability associated with auditing public companies. However, Fine has been a bit stagnant, business-wise, for the past few years, and some of the older and more risk-adverse partners are beginning to retire. Consequently, the lure of the often-lucrative and prestigious opportunity to audit a public company has become too hard to resist, so the partners have decided to pursue the chance to audit this company. On a beautiful early-September morning you are called into the senior partner’s office and told you and your team have been selected to lead the first-ever effort to audit a publically-traded company for Fine. You are honored, but also know auditing a public company is a bit more tricky and complicated than auditing private and not-for-profit organizations. Fortunately, the senior partner had considerable experience early in his career with another firm in auditing public companies and told you he would be with you all the way. Relieved, you asked him what he wanted you to do. He tossed you the most
recent Form 10-K of the company you selected and gave you the following assignments: Review and discuss the Form 10-K for the company you have selected. Create a report that will have 4 sections. Section 1, Initial Risk Assessment. Hint: The business and risk information is usually found in the first part of the Form 10-K. However, for the risks, do not simply restate what is in the Form 10-K. Think like a senior manager at a CPA firm – what accounts (Cash, A/R, Revenue, Inventory, etc.) might be the most potentially risky and why? For example, an airline might not have the same inventory considerations found with a retail outlet like Wal-Mart. In 700-to 1,050-words: Describe the business briefly. Assess any risks you may encounter in auditing this company. General Audit Concerns The requisite background you and your team will need to adequately audit this company. Time it will take to adequately audit this client. General Business Concerns . Has the company you’re auditing recently increased or decreased their operations due to mergers or sales of parts of the business? Are they a conglomerate with lots of disparate kinds of goods and services, or are they a simple straight-forward type of business operating in a relatively small location? Are operating supplies (such as jet fuel or specialty plastics) in short supply or subject to wild pricing swings on the open market? What about overseas operations – are they operating in dangerous parts of the world? How robust or intense is the competition in this particular industry? Has their top management recently been replaced and if so, why?
Is seasonality a factor for this company? How does that affect revenue and other operations? Describe the following issues: Ethics and Legal Issues The ethics and sophistication of top management and cultures where the company operates. Have there been significant auditing or accounting issues raised in the recent past? Did they have disputes with their previous audit firm? Is this company or industry particularly susceptible to lawsuits or other legal proceedings? Evaluate the regulatory and compliance requirements of this company: Regulatory and Compliance Concerns The compliance requirements of this company. Is it subject to a high-level of governmental regulation? Are employees unionized? Are they generally compliant with Sarbanes-Oxley and other regulatory rules? Section 2, Analytical Procedures Based on TABLE 8-1, p. 220 Examples of Planning Analytical Procedures and the sections on Analytical Procedures in the text, select three ratios (e.g. Current Ratio, Inventory Turnover, Debt to Equity, Return on Assets, etc.), calculate these ratios for your company and a competitor for the most recent year, and compare the results. Write a 350-to 525-word analysis of your findings. Note that these ratios are found in the Common Financial Ratios section of Chapter 8. Section 3, Materiality and Risk The senior partner wants to confirm your understanding of key concepts. Summarize each concept 90-175-words each. Materiality Misstatement
Audit Risk Audit Risk Model Inherent Risk Relationship of Risk to Audit Evidence Section 4, Audit Tests The reading in Chapter 13 (p. 402-407) describes five types of audit tests of financial statements: Risk Assessment Procedures Test of Controls Substantive Tests of Transactions Analytical Procedures Tests of Details of Balances. In 350- to 700-words: Identify which tests are best suited for the company you selected and why. Explain why some tests are not suitable. Learning Team assignments build upon each other from Weeks 3-5. The first step in this process is to go to the website of a publicallytraded US company and select the most recent 10-K Form (legallyrequired document publicly-traded companies must submit to the Securities and Exchange Commission - SEC - on an annual basis. Among other things, this document contains the opinion of the CPA firm regarding the company's financial statements and adherence to Generally Accepted Accounting Principles - GAAP). The contents of this form will be the basis of the team assignments -------------------------------------
ACC 491 Week 3 Team Scenario Assignment (Lockheed Martin)
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www.newtonhelp.com Week 3 Team Assignment Document You are a senior manager for the highly successful regional CPA firm of Fine, Dee, Evah, Dense, LLP (Fine). Since its inception nearly 30 years ago, Fine’s audit practice has exclusively consisted of auditing private and not-for-profit organizations. Recently, the partners have been considering an opportunity to audit a publically-traded company for the company your team has selected. The primary reason Fine has not heretofore ventured into auditing publically-traded companies is because of the potential risk and legal liability associated with auditing public companies. However, Fine has been a bit stagnant, business-wise, for the past few years, and some of the older and more risk-adverse partners are beginning to retire. Consequently, the lure of the often-lucrative and prestigious opportunity to audit a public company has become too hard to resist, so the partners have decided to pursue the chance to audit this company. On a beautiful early-September morning you are called into the senior partner’s office and told you and your team have been selected to lead the first-ever effort to audit a publically-traded company for Fine. You are honored, but also know auditing a public company is a bit more tricky and complicated than auditing private and not-for-profit organizations. Fortunately, the senior partner had considerable experience early in his career with another firm in auditing public companies and told you he would be with you all the way. Relieved, you asked him what he wanted you to do. He tossed you the most recent Form 10-K of the company you selected and gave you the following assignments: Review and discuss the Form 10-K for the company you have selected.
Create a report that will have 4 sections. Section 1, Initial Risk Assessment. Hint: The business and risk information is usually found in the first part of the Form 10-K. However, for the risks, do not simply restate what is in the Form 10-K. Think like a senior manager at a CPA firm – what accounts (Cash, A/R, Revenue, Inventory, etc.) might be the most potentially risky and why? For example, an airline might not have the same inventory considerations found with a retail outlet like Wal-Mart. In 700-to 1,050-words: Describe the business briefly. Assess any risks you may encounter in auditing this company. General Audit Concerns The requisite background you and your team will need to adequately audit this company. Time it will take to adequately audit this client. General Business Concerns . Has the company you’re auditing recently increased or decreased their operations due to mergers or sales of parts of the business? Are they a conglomerate with lots of disparate kinds of goods and services, or are they a simple straight-forward type of business operating in a relatively small location? Are operating supplies (such as jet fuel or specialty plastics) in short supply or subject to wild pricing swings on the open market? What about overseas operations – are they operating in dangerous parts of the world? How robust or intense is the competition in this particular industry? Has their top management recently been replaced and if so, why? Is seasonality a factor for this company? How does that affect revenue and other operations? Describe the following issues: Ethics and Legal Issues
The ethics and sophistication of top management and cultures where the company operates. Have there been significant auditing or accounting issues raised in the recent past? Did they have disputes with their previous audit firm? Is this company or industry particularly susceptible to lawsuits or other legal proceedings? Evaluate the regulatory and compliance requirements of this company: Regulatory and Compliance Concerns The compliance requirements of this company. Is it subject to a high-level of governmental regulation? Are employees unionized? Are they generally compliant with Sarbanes-Oxley and other regulatory rules? Section 2, Analytical Procedures Based on TABLE 8-1, p. 220 Examples of Planning Analytical Procedures and the sections on Analytical Procedures in the text, select three ratios (e.g. Current Ratio, Inventory Turnover, Debt to Equity, Return on Assets, etc.), calculate these ratios for your company and a competitor for the most recent year, and compare the results. Write a 350-to 525-word analysis of your findings. Note that these ratios are found in the Common Financial Ratios section of Chapter 8. Section 3, Materiality and Risk The senior partner wants to confirm your understanding of key concepts. Summarize each concept 90-175-words each. Materiality Misstatement Audit Risk Audit Risk Model Inherent Risk Relationship of Risk to Audit Evidence
Section 4, Audit Tests The reading in Chapter 13 (p. 402-407) describes five types of audit tests of financial statements: Risk Assessment Procedures Test of Controls Substantive Tests of Transactions Analytical Procedures Tests of Details of Balances. In 350- to 700-words: Identify which tests are best suited for the company you selected and why. Explain why some tests are not suitable. Learning Team assignments build upon each other from Weeks 3-5. The first step in this process is to go to the website of a publicallytraded US company and select the most recent 10-K Form (legallyrequired document publicly-traded companies must submit to the Securities and Exchange Commission - SEC - on an annual basis. Among other things, this document contains the opinion of the CPA firm regarding the company's financial statements and adherence to Generally Accepted Accounting Principles - GAAP). The contents of this form will be the basis of the team assignments -------------------------------------
ACC 491 Week 4 Assignment Internal Control, COSO and SOX
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Write a paper on COSO and how it relates to Sarbanes-Oxley and the auditing of public companies in 700 to 1,050 words. Address the following: · Provide a brief history of COSO. · Describe the five components and 17 principles of the COSO Framework. · Review your company's "Management's Annual Report on Internal Control over Financial Reporting" and "Report of Independent Registered Public Accounting Firm" (usually found in Section 9A of the Form 10-K) and explain why these reports are necessary. -------------------------------------
ACC 491 Week 4 DQ 1
For more course tutorials visit www.newtonhelp.com What are some of the different types of sampling methods that are available to the auditor? How does the auditor decide which method to use? How will the different methods affect the audit? -------------------------------------
ACC 491 Week 4 DQ 2
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www.newtonhelp.com What is the importance of defining the population when performing audit procedures? How will this affect the sample size? How will incorrectly defining the population affect the sampling unit? -------------------------------------
ACC 491 Week 4 Team Scenario Assignment Cheat Sheet on Evidence and Documentation
For more course tutorials visit www.newtonhelp.com In further preparation for your audit of the company your team selected, you decided to gather your team and discuss Audit Evidence and Documentation Standards for this audit. Your preparation included a review of evidence and documentation literature (Chapter 7). To properly prepare the staff that will be working with you, you decide to create a Cheat Sheet on Evidence and Documentation to be used in your presentation. Prepare a "Cheat Sheet" that briefly describes Audit Evidence and Documentation Standards, which includes the following topics. Each topic should be 90 to 175 words: ¡ Comparison of Audit, Scientific and Legal Evidence Standards. ¡
· Consideration of Sample Sizes and Methods (random, haphazard, monetary unit sample, judgmental) and how sampling affects evidence. · · Relevance, Reliability and Sufficiency of Evidence. · · Brief statement on the 80 types of audit evidence (physical examination, observation, confirmations, inquiry, recalculation, etc.). · · Purpose, Ownership, Confidentiality and Retention of Documentation ------------------------------------.
ACC 491 Week 5 Fraud Auditing (2 Papers)
For more course tutorials visit www.newtonhelp.com Write a 750- to 1,050-word paper on fraud auditing and IT auditing. · Describe the different kinds of fraud andthe Fraud Triangle, an auditor's responsibility to identify and assess fraud. · Describe the specific risks, benefits, and internal controls associated with IT functions. · Please do not plagiarize -------------------------------------
ACC 491 Week 5 Team Assignment Scenario Assignment Summary (Amazon)
For more course tutorials visit www.newtonhelp.com Create a 20- to 30-minute presentation, with 15 to 20 slides based the team scenario assignments from Weeks 3 and 4 (Initial Risk Assessment, Analytical Procedures, Materiality and Risk, Audit Tests, Work Programs, Evidence and Documentation, Report on Internal Controls, COSO and SOX). State the company selected for the team assignments. Explains the reason the company was selected. Describe insights gained by performing some planning for this company. -------------------------------------
ACC 491 Week 5 Team Assignment Scenario Assignment Summary (Apple)
For more course tutorials visit www.newtonhelp.com Create a 20- to 30-minute presentation, with 15 to 20 slides based the team scenario assignments from Weeks 3 and 4 (Initial Risk
Assessment, Analytical Procedures, Materiality and Risk, Audit Tests, Work Programs, Evidence and Documentation, Report on Internal Controls, COSO and SOX). State the company selected for the team assignments. Explains the reason the company was selected. Describe insights gained by performing some planning for this company. -------------------------------------
ACC 491 Week 5 Team Assignment Scenario Assignment Summary (Barnes & Noble)
For more course tutorials visit www.newtonhelp.com Create a 20- to 30-minute presentation, with 15 to 20 slides based the team scenario assignments from Weeks 3 and 4 (Initial Risk Assessment, Analytical Procedures, Materiality and Risk, Audit Tests, Work Programs, Evidence and Documentation, Report on Internal Controls, COSO and SOX). State the company selected for the team assignments. Explains the reason the company was selected. Describe insights gained by performing some planning for this company.
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