Audit Report

Assignment should be single spaced with double spacing between paragraphs, written in your own words.

Audit Report (2-3 pages)

The purpose of this assignment is to apply the course concepts dealing with the audit engagement and reporting.

You need to select a company of interest. I recommend selecting a company in an industry familiar to you. Do not pick a company with complex businesses such as AIG or JP Morgan. For this assignment, simple is better. Although it is not mandatory, it is advisable to pick a publicly traded company.

For the company chosen, you will need to determine an area to audit based on a determination of the key risks for the company. Some sources of information for your consideration include the company’s 10-K, the UMGC library, trade publications, Internet searches, and/or LinkedIn. Pick something you understand. Do not make the audit too broad. An entire business process is too broad. The audit can be a financial, operational or IT.

Your paper needs to cover the following:

• The reason(s) for selecting the area to be audited. This should be based on your risk assessment.You need to explain how you went about selecting the area to be audited
• The objectives of your audit
• The scope of the audit.Since you have a limited amount of information about the company, you can make assumptions.
• The key audit procedures to be performed in the audit (think steps in an audit program).Explain why you picked these steps.You should have no more than ten steps.You can use a table for this section.The purpose of this part of the assignment is not to create an entire audit program.
• At least four possible findings and recommendations.Give it some thought. Of course, these are not real findings since you have not performed the audit. You just needed to exercise a little creativity. You should write the findings and recommendations as if they will be in a formal audit report.

As you work on this assignment, make sure to avoid these pitfalls:

• You provide a laundry list of risks.
• The audit engagement is not related to your significant risk.
• Your audit would likely be performed by an external auditor. This is not an audit of the financial statements to express an opinion.
• Your paper includes multiple audit engagements.The paper should be limited to a single audit engagement.
• You use generalities for audit steps such as:
  • test internal controls
  • test accuracy, completeness and classification