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’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 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: 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. 1. 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. 1. 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. 1. 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. 1. 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. 1. 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: 1. 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. 1. 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: 1. Plan and design a generalized audit program. 1. Determine the nature and extent of evidence accumulated to conduct an audit after considering the unique circumstances of an engagement. 1. Evaluate a company’s various risk factors and the related impact to the audit process. 1. Evaluate effective internal controls that minimize audit risk and pote ...

1. 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’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 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:
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.
1. 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.
1. 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.
1. 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.
1. Assuming that the end result is an unqualified audit report,
outline the primary responsibilities of the audit firm after it

2. issues the report in question.
1. 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:
1. 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.
1. 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:
1. Plan and design a generalized audit program.
1. Determine the nature and extent of evidence accumulated to
conduct an audit after considering the unique circumstances of
an engagement.
1. Evaluate a company’s various risk factors and the related
impact to the audit process.
1. Evaluate effective internal controls that minimize audit risk
and potentially reduce the risk of fraud.
1. Use technology and information resources to research issues
in auditing.
1. 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.

3. PSYC 221
Observation Paper Grading Rubric
Student: _______________________________
5
4
3
2
1
0
Structure and Organization
Clear introduction and strong subject evidence; clear and
appropriate transitions; appropriate paragraphing; logical,
strong conclusion rising from content with how you can use this
information and apply it.
Generally clear introduction and focused; generally clear and
appropriate transitions; mostly appropriate paragraphing;
adequate conclusion – relates to content but lacks objectivity or
is vague; how you can use this information and apply it is
vague.
Adequate introduction; unclear; adequate transitions; reader can
follow what is being said, but the paper’s overall organization
is choppy; adequate paragraphs; conclusion is simplistic; very
little evidence on how this information will be used and how it
can be applied.
Weak introduction; weak transitions; main points can be
ascertained, but difficult to follow what is being said; weak and
long paragraphing; conclusion repeats introduction. No
evidence of how this information can be used or how it will be
applied.
Weak introduction and does not draw reader’s interest; little or
no transitions; organization is disjointed and haphazard;
paragraphs are weak; lacks conclusion.
No assignment was turned in.

4. Content
Assignment parameters (length, subject, objectives) are
observed; focus is clear and coherent (good sense of audience);
obvious understanding of subject; orderly development; 3
specific examples of the child’s behavior and how it relates to
material reviewed in this course are included; A reflection on
Ecclesiastes 3:1 as it relates to child development is included.
Assignment parameters (length, subject, objectives) are
observed; focus is generally clear and coherent (general sense
of audience); good understanding of subject; adequate
development; orderly, but stiff, choppy progression of evidence;
3 examples of the child’s behavior and some evidence of how it
relates to material from this course. A reflection on Ecclesiastes
3:1 is included.
Assignment parameters (length, subject, objectives) not clearly
observed; mostly focused (some sense of audience); thoughts
randomly organized and presented; assertions weakly supported
and/or illustrated; 2 examples of the child’s behavior and some
evidence of how it relates to the material from this course. A
very weak reflection on Ecclesiastes 3:1 is included.
Inadequate or minimal observance of assignment length, subject
and objectives; weakly focused (little sense of audience);
unclear progression of ideas; assertions weakly supported
and/or illustrated; 2 very weak examples of the child’s behavior
and some evidence of how it relates to the material from this
course. A very weak reflection on Ecclesiastes 3:1 is included.
Inadequate length; objectives of assignment not met; unfocused;
little or no sense of audience; serious and persistent errors in
organization and structure; lacks understanding of subject;
disorganized; does not prove point, if one can be discerned; 1
example of a child’s behavior and no evidence of how it relates
to the material from this course. No reflection on Ecclesiastes
3:1 is included.
No assignment was turned in.
5

5. 4
3
2
1
0
Grammar and Mechanics
Sentence fluency coherent, unified, varied; sentence structure
complete; correct spelling, punctuation, capitalization; varied
diction, word choices
Sentence fluency correct, varied; Minor errors in structure
(fragments, run-ons); correct spelling, punctuation,
capitalization; limited diction, word choices
Relatively few errors in sentence fluency; multiple
fragments/run-ons, poor spelling, punctuation, and
capitalization; limited diction, uses trite words, slang, and
contractions
Significant errors in sentence fluency and structure, spelling,
punctuation and capitalization; diction weak or inappropriate
Serious and persistent errors in: sentence fluency, sentence
structure, spelling punctuation, usage, word choice
No assignment was turned in.
Research and Sources
Consists of relevant materials and effective research;
appropriate depth and length of review; sources are appropriate
to the assignment; number of citations and sources adequate for
paper, all supportive facts are reported accurately and
appropriately cited or paraphrased
Generally relevant material and research to support findings;
adequate depth and length of review, sources mostly appropriate
and cited correctly; number of citations and sources adequate
for paper, almost all supportive facts are reported accurately
and appropriately cited or paraphrased
Some research is cited, but lacks depth; sources generally
appropriate; number of citations and sources minimally
adequate for paper, most supportive facts are reported
accurately and appropriately cited or paraphrased

6. Research is limited and not relevant; choice of resources is
inadequate. Most supportive facts are reported accurately but
inappropriately cited or paraphrased.
Relevant research is missing; not enough resources;
inappropriate resources, no facts are reported or most are
inaccurately reported or not appropriately cited or paraphrased
No assignment was turned in.
Format
Appearance is readable and neat; correct use of APA, margins,
font size/style, pagination, reference page correctly formatted,
double-spaced, alphabetized; sources correctly cited
Appearance is readable and neat; most of paper uses correct
APA, font size/style, pagination; reference page format
generally consistent and alphabetized; sources correctly cited
Readability and neatness of paper are compromised by the
number of errors; APA format is inconsistent and inadequate;
reference page is inconsistent and not alphabetized; most
sources correctly cited
Disorderliness of paper makes it difficult to read; several format
errors; significant errors in reference page; references are not
alphabetized; errors in citations
Paper is not readable and is disorderly; APA format is not used;
no reference page and/or numerous format errors; sources not
cited or incorrectly cited
No assignment was turned in.
Instructor’s Comments:
Points given x 3.2 = ____/80 Points