ACC 411 Final Project Guidelines and Ru
ic
ACC 411 Final Project Guidelines and Ru
ic
Overview
Professional auditors are charged with the responsibility of analyzing internal controls, conducting risk assessments using analytical procedures, and designing
and implementing audit programs. The purpose of any audit is to report, analyze, and determine whether a specific entity met the stated goals of the
procedures being audited. The audit objectives drive the audit program, the analytical procedures, and the substantive fieldwork done by the audit team. Most
people think of financial auditing when they discuss, read about, or are involved with audits because it is the most common type; however, there are many other
types of audits. These include performance, government, compliance, and internal audits. This class focuses on financial auditing for the majority of the topics,
which requires that auditors possess the skills and abilities to successfully implement auditing standards and procedures.
For your final project for this course, you will assume the role of an auditor at a large accounting firm, preparing to perform an audit of financial records for
Ro
ins Network Solutions (RNS). As with any audit, the audit team is not always going to have access to all the information and resources they want prior to
starting and working on the audit. That is real-world auditing. The assignment is intended to mimic what auditors face in their career. Do the best with what you
have, using auditing standards and critical thinking. Support all your responses based on the material you have.
This summative assessment focuses on the preliminary audit assessment, including the drafting of a summary of findings, preparation of an audit program, and
evaluation of the relationship between audit risk, audit evidence, and financial statement assertions.
The project is divided into two milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Three and Five. The final product will be submitted in Module Seven.
In this assignment, you will demonstrate your mastery of the following course outcomes:
ACC-411-01: Explain the use of assurance services in financial reporting
ACC-411-02: Assess the internal controls of an entity for minimizing risk
ACC-411-03: Analyze the impact of emerging technologies that could affect auditing
Prompt
Assume you are an auditor at an accounting firm. Your team is getting ready to start a financial audit of Ro
ins Network Solutions (RNS). You will start with the
initial review and audit preparation. Refer to the Final Project Scenario document for more information.
Specifically, the following critical elements must be addressed. Most of the critical elements align with a particular course competency (shown in
ackets).
I. In a concise memo, evaluate the internal controls of RNS.
1
https:
learn.snhu.edu/d2l/lo
viewe
view.d2l?ou=6606&loIdentId=22941
A. Describe the major financial business transactions of the company. Include appropriate research to support your answer. [ACC-411-01]
B. Evaluate the highest business risks associated with this company. What makes you believe these specifically are the highest risks? Provide
appropriate research or data to support your reasoning. [ACC-411-02]
C. What would you suggest are the appropriate types of internal controls for this industry? Why? [ACC-411-02]
D. Describe ethical issues involved with this company and industry that would have a direct effect on the outcome of a financial audit. How could
these issues be addressed? [ACC-411-02]
E. Analyze cu
ent events for their impact on this company’s risk and internal control in the future. Include documentation of these cu
ent events.
[ACC-411-02]
II. Write an audit program for internal control of cash in Word or Excel. The following internal control components must be included: [ACC-411-02]
A. Control environment
B. Risk assessment
C. Control activities
D. Information and communication
E. Monitoring
III. Adding to your memo from Milestone One, document your understanding of the relationship between audit risk, audit evidence, and financial
statement assertions as it specifically relates to this company and industry.
A. Describe the audit data or evidence your team will review. Why is this proof important? [ACC-411-01]
B. What if a significant portion of the data is overseas and beyond the auditors’ jurisdiction or audit universe? Analyze how the audit team will
compensate for that risk. What governing rules and regulations must be taken into consideration? [ACC-411-02]
C. Describe analytical procedures you will use to determine the sampling program. How will your internal control evaluation affect this step? Be
specific. [ACC-411-02]
D. List and then describe the types of audit evidence you will request from the company. [ACC-411-01]
E. Describe any considerations your team will make in auditing subjective areas, including any governing rules and regulations that were factored
into the auditing decisions. [ACC-411-02]
F. Describe the factors you took into consideration when planning the nature and extent of the audit documentation. [ACC-411-01]
G. Describe how responsibility for IT (computers, software, internet usage, databases) risk coverage for companies in the IT industry is defined. Is it
adequate? Describe how that definition addresses or fails to address cu
ent and future risks related to social media. [ACC-411-03]
H. Describe the internal controls that are put in place to specifically protect computer data and proprietary information. How well do these
controls operate within the IT industry? [ACC-411-03]
I. Where do cu
ent and future vulnerabilities exist for IT, and what must be done to manage these gaps? [ACC-411-03]
2
Milestones
Milestone One: Internal Controls
In Module Three, you will submit Milestone One. You are starting your audit at RNS and the first step you have to take is evaluating the internal controls of the
company. This milestone will be graded with the Milestone One Ru
ic.
Milestone Two: Audit Program
In Module Five, you will submit Milestone Two. You will complete your audit program at RNS. This milestone will be graded with the Milestone Two Ru
ic.
Final Submission: Auditing Final Project
In Module Seven, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should
eflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Ru
ic.
Deliverables
Milestone Deliverable Module Due Grading
One Internal Controls Three Graded separately; Milestone One Ru
ic
Two Audit Program Five Graded separately; Milestone Two Ru
ic
Final Submission: Auditing Final Project Seven Graded separately; Final Project Ru
ic
Final Project Ru
ic
Guidelines for Submission: Your memo (combining sections I–III) must be a total of 4–6 pages (plus references cited in APA format). Use double spacing, 12-
point Times New Roman font, and one-inch margins.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Internal Controls:
Transactions
[ACC-411-01]
Meets “Proficient” criteria and
demonstrates a nuanced
understanding of the major
financial business transactions of
the company
Describes the major financial
usiness transactions of the
company and effectively
supports them with research
Describes the major financial
usiness transactions of the
company, but does not
effectively support the
description with research or the
description is inaccurate,
illogical, or unclear
Does not describe the major
usiness financial transactions of
the company and support the
description with research
6
3
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Internal Controls:
Risks
[ACC-411-02]
Meets “Proficient” criteria and
demonstrates keen ability to use
esearch in support of a choice
of risk
Evaluates the highest business
isk for the company, provides
an appropriate rationale for the
choice, and supports the choice
with data or research
Evaluates the highest business
isk for the company, but
esponse lacks a rationale
explaining the choice, or
supporting research or data or
the rationale provided is illogical,
unclear, or incomplete
Does not evaluate the highest
usiness risk
6
Internal Controls:
Controls
[ACC-411-02]
Meets “Proficient” criteria, and
suggestions demonstrate a
nuanced understanding of
internal control and the
company environment
Provides an appropriate
suggestion for the types internal
controls for the company and
explains the reasons for the
suggestion
Provides a suggestion for the
types internal controls for the
company but does not explain
the reason for the suggestion, o
the suggestions or the
explanations are inappropriate,
illogical, unclear, or incomplete
Does not provide a suggestion of
types of internal controls for the
company
6
Internal Controls: