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 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’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 r.

1. 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 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.

2. 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.
·
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

3. 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.

4. 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.

5. 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

6. 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%

7. 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.

8. 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

9. 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.