Project Description and Suggestions
For the project, you are to put together an audit plan for the company of your choosing. Obtain the latest financial statements for your company and use the most recent fiscal period as what your client would assert to you at the beginning of the audit. For example, if you choose a company with a December 31 fiscal year-end, you would probably use 12/31/18 numbers as a current year starting point. Some of the items you should have in your audit plan include, but are not limited to, the following:
- Documentation of your understanding of the business, company history, the industry it operates in, regulation it is subjected to, etc.
- Documentation of your risk assessments related to the company. This could include risks related to the previous bullet above, risks related to any incentives, fraud, illegal acts, related party transactions, etc, or accounting specific risks related to line items on the company’s financial statements
- Audit programs documenting risk assessments (inherent and control) for the accounting area this pertains to (i.e. revenues, accounts payable, intangible assets, etc), possible control testwork and substantive procedures to be performed, etc.
- At the very least, I would think you’d have audit programs for accounts you deem associated with any significant risks and for accounts comprising major parts of company business
- REQUIRED: Illustrate the role of data analytics in performing these audit procedures
- Preliminary analytical procedures based on current year and prior year financial statements
Some guidelines related to the project:
- I do let you choose your own groups; as such, I am not responsible for the setting of groups, including promises made between students, etc. I only go by direct, documented
- (i.e. email) correspondence between students and myself. Your group is not official until notated in the gradebook on Blackboard.
- You may choose any U.S. company subjected to U.S. GAAP you want; however, you may not choose any companies audited by a San Diego office of a public accounting firm. You can see who audits a company based on the audit opinion page of their annual report. Only one group will be allowed to work on a given company. Companies will be approved by me on a first response basis.
- their financial statements. Accounts deemed significant should probably have associated audit programs and be addressed in your preliminary ana
- You will present the projecton one of the designated days stated on the schedule per the syllabus.The day you present will be up to you, on a first response basis. This must be communicated to me along with other pertinent project information (i.e. company, group members, etc).
- This project is to be done based on your current external knowledge of your company. Please do not make reference to discussions with client personnel, detailed documentation of company processes, or other “made-up” information.
- Quantity does not necessarily equal quality. The amount of content will not solely dictate your grade. It is very important that all things included are relevant to your company and not merely pumping up the size of your project.
- As with anything in academics, when in doubt, be as specific as possible. What I mean by that is I expect you to address major areas related to your company beyond material strictly from the textbook. I want you to think about and address things that actually are the significant areas of your client company, potentially above and beyond the standard things that affect all companies (i.e. cash, revenue recognition).
- Please reference sources appropriately as needed.
- As previously mentioned in class, I think a good approach would be to address issues related to your company in conjunction with chapters we cover in the textbook. While I think your project should also address issues not covered in the text, this approach could provide you with a timetable for addressing relevant issues to your company while they are still relatively fresh to you.
- It would not be extraneous for your business understanding and risk assessment portions of your project to each be 10-15+ pages. There are lots of resources out there.
- What do you have to turn in? I expect a deliverable in document form submitted via email to me on the day you will present your project. This should read like passages or a report. I would suggest separating the project out by items bulleted in the project requirements and guidelines here. I also expect electronic files for your project AN HOUR before the start of class on the day of presentations.
- Late submission of either your tangible product or your presentation materials to me by the appropriate deadlines will result in DEDUCTIONS from your project grade, so please be ON TIME with everything.
- Feel free to run anything by me for thoughts and discussion. However, I would not wait too long, as my time will likely be scarcer later in the semester.
Last Updated on