[Solution]The risks, audit and internal controls

Topic: You are an auditor at a prestigious CPA firm.  After several years of hard work, your boss informs you that you will be in charge…

Topic: You
are an auditor at a prestigious CPA firm.  After several years of hard
work, your boss informs you that you will be in charge of this year’s audit of
the firm’s most important client, Bullseye, a general merchandise retailer with
hundreds of stores throughout the United States.  Bullseye is a publicly
traded company with its corporate headquarters in Minneapolis, MN.  It
does not have any foreign operations.  Local managers take care of all
hiring/personnel issues but payroll is administered through corporate
headquarters.  Similarly, store managers order store supplies and
inventory on account through approved suppliers who send the bill to corporate
headquarters where it is paid and allocated to the appropriate store. 
Cash from sales is deposited on a daily basis into local branches of a national
bank chain that handles all banking needs for Bullseye. and store managers have
authority to withdraw cash to meet the daily business needs of their
store.  Each store has a bookkeeper on staff who records all
transactions.  Naturally, Bullseye relies heavily on technology to manage
inventory, payroll, record keeping, and other financial issues at the store and
corporate levels.  They have an integrated system where information
recorded at the store level is transmitted to corporate headquarters and
entered into the appropriate accounts.  Bullseye has been in generally
good financial health for several years and there are no concerns about its
ability to remain a going concern.  All previous audits have only found
minor problems that were the result of human error, such as transposing numbers
or entering amounts into the wrong account, and these errors were easily
corrected.

Your supervisor informs you that you will have a team of four other
accountants, including an IT professional to assist on the audit.  You
will be flying to Minneapolis next month to conduct the audit at Bullseye
corporate headquarters.  While your boss assures you that you will have a
sufficient budget to conduct a complete audit, the firm wishes to make the
audit as efficient as possible.  You can send your staff to stores
throughout the country if needed.

Following the format for an integrated audit presented in the textbook, create
a comprehensive plan, in essay form, for your audit of Bullseye, from
establishing the scope of the audit through issuing the final report. 
Because Bullseye has been a client for several years, this is an ongoing audit,
so you only need to be concerned with collecting information about the company
to the extent that you can get the information you need for conducting this
audit.  

The plan should be 5-7 pages and should be in APA format,
with a minimum of 2 outside sources used to support your plan.  Be sure to
include what accounts you will want to pay particular attention to, the risks
that are relevant to this company and your audit, internal controls you will
want to test and how you will test them, and any ethical concerns that may be
anticipated.

Your assignment will automatically be submitted to
Turnitin in the assignment dropbox. Originality reports will be returned to the
faculty and student. Multiple submissions are allowed. Make sure that your
Similarity Index does not exceed 25% for undergraduate work.

Textbook:
Arens, A. A., Elder, R. J., Beasley, M. S., Hogan, C. E. (2017) Auditing and
Assurance Services. 16th Edition, Pearson
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