ACC 640 Milestone Two Guidelines and Rubric Auditing is a valuable skill in accounting and business, as the odds are very high that you or your organization will be subject to a compliance, federal,...

ACC 640 Milestone Two Guidelines and Ru
ic

Auditing is a valuable skill in accounting and business, as the odds are very high that you or your organization will be subject to a compliance, federal, IRS,
internal, government, or revenue audit at one point in your career. Accountants are required to make professional judgments on both the financial accounting
issues and internal accounting forecasts within their organization. The auditor must provide fair, unbiased, materially co
ect information for investors,
employers, employees, and independent stakeholders. This course will help you navigate the relevant processes to provide that unbiased, accurate information.

For Milestone Two, you will submit a draft of risk factors as identified for all of the major business transactions conducted by your chosen company. Analyze the
income statement, balance sheet, and cash and revenue for any potential risk factors and compliance issues with Generally Accepted Accounting Principles
(GAAP). Based on your analysis of risk, devise a statistical and judgmental sampling program for the population. Recommend the most preferable audit testing
procedure based on the population items sampled.

Prompt: Analyze potential risk factors in all the major business transactions using the information you have gathered in previous milestones.

Specifically, the following critical elements must be addressed:

A. Analyze the income statement for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP).
B. Analyze the risk factors and compliance issues with GAAP on the balance sheet.
C. Using the internal control, analyze the cash and revenue for potential risk factors.
1. What risks need to be documented?
2. How does this information compare to the company or industry averages, or the company’s past performance?
D. Explain the population and how you identified it.
E. Based on your analysis of risk, devise a sampling program for the population.
F. Choose the most preferable audit testing procedures that could be used, based on the items sampled in this situation.
Ru
ic
Guidelines for Submission: Your paper must be submitted as a 3–4-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-
inch margins, and at least three sources cited in APA format


Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value
Factors: Statement Analyzes the income statement for
any potential risk factors or
compliance issues with GAAP
Analyzes the income statement for
any potential risk factors or
compliance issues with GAAP, but
analysis lacks depth or detail
Does not analyze the income
statement for any potential risk
factors or compliance issues with
GAAP
16
Factors: Sheet Analyzes risk factors and compliance
issues with GAAP on the balance
sheet
Analyzes risk factors and compliance
issues with GAAP the balance sheet,
ut analysis lacks depth or detail
Does not analyze risk factors and
compliance issues with GAAP on the
alance sheet
16
Factors: Control Analyzes the cash and revenue of the
company for potential risk factors
using the internal control
Analyzes the cash and revenue of the
company for potential risk factors
using the internal control, but
analysis lacks depth or does not
eference the internal control
Does not analyze the cash and
evenue of the company for potential
isk factors using the internal control
16
Factors: Explain Explains the population and how it
was identified
Explains the population and how it
was identified, but explanation lacks
depth or detail
Does not explain the population and
how it was identified
16
Factors: Devise Devises a sampling program for the
population based on the risk analysis
Devises a sampling program for the
population based on the risk
analysis, but the documentation of
isk lacks depth or detail
Does not devise a sampling program
for the population based on the risk
analysis
16
Factors: Procedures Chooses an audit testing procedure
that could be used and justifies why
it would be preferable for this
situation
Chooses an audit testing procedure
that could be used and justifies why
it would be preferable, but
justification is inaccurate or
inappropriate
Does not choose an audit testing
procedure that could be used nor
justify why it would be preferable
16
Articulation of
Response
Submission has no major e
ors
elated to citations, grammar,
spelling, syntax, or organization
Submission has major e
ors related
to citations, grammar, spelling,
syntax, or organization that
negatively impact readability and
articulation of main ideas
Submission has critical e
ors related
to citations, grammar, spelling,
syntax, or organization that prevent
understanding of ideas
4
Earned Total 100%