ACC 640 Milestone One Guidelines and Ruic Auditing is a valuable skill in accounting and business,...

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ACC 640 Milestone One Guidelines and Ruic   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 coect information for investors, employers, employees, and independent stakeholders. This course will help you navigate the relevant processes to provide that unbiased, accurate information.  The purpose of the assessment is to familiarize you with the process of auditing and what to do with the auditing information once you have it. You will explore how to plan audit work, analyze financial statements, perform tests on that information, and properly and professionally communicate the results of an audit.  For this assessment, you should assume you are on the internal audit staff of a publicly traded company. Choose one of the following companies: Walmart, Target, Sears, Kroger, or Amazon. You will be required to obtain the last two years’ worth of financial statements and a recent audit report. The internal audit group at the company is tasked with preparing for an upcoming revenue audit and analyzing the business risk internally to mitigate audit findings. You will conduct an internal audit of the company using the information gathered and create a report. Then, you will prepare appropriate memos analyzing the audit eport you have prepared, while offering feedback and recommendations.  For Milestone One, you will submit a draft of the procedures required for conducting your audit process. Describe how you would conduct the audit process for the company you have chosen, including the analytical procedures you would use to investigate selected business transactions. Explain the appropriate procedures needed to determine and review high-risk business transactions for cash and revenue, and create a test to assess appropriate assertions for designated high-risk business transactions.  Prompt: Outline the procedures that will be involved in conducting the internal audit report and explain how you intend to communicate your findings. Create a test to assess appropriate assertions for designated high-risk business transactions.  Specifically, the following critical elements must be addressed:  A. Describe how you would conduct the audit process, incorporating the analytical procedures you would use to investigate selected business transactions.  1. What steps will you take to review the company’s business transactions? 2. What would your plan be to utilize these procedures? 3.  How would you determine the high-risk business transactions? B. Explain the appropriate procedures needed to review high-risk business transactions for cash and revenue.  1. What would you need to do to investigate these? 2. Could you convey this information through charts or other supporting documentation? C. Create a test to assess appropriate assertions for designated high-risk business transactions.Ruic 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 Procedures: Describe Describes how the audit process would be conducted, incorporating analytical procedures for selected business transactions Describes how the audit process would be conducted, incorporating analytical procedures for selected business transactions, but description is inaccurate or lacks detail Does not describe the how the audit process would be conducted incorporating analytical procedures for selected business transactions 30 Procedures: Explain Explains the appropriate procedures needed to review high-risk business transactions for cash and revenue Explains the appropriate procedures needed to review high-risk business transactions for cash and revenue, but explanation is cursory or lacks detail Does not explain the appropriate procedures needed to review high-risk business transactions for cash and revenue 30 Procedures: Create Creates a test to assess appropriate assertions for designated high-risk business transactions Creates a test to assess assertions for designated high-isk business transactions, but test is inaccurate or inappropriate Does not create a test to assess appropriate assertions for designated high-risk business transactions 30 Articulation of Response Submission has no major eors elated to citations, grammar, spelling, syntax, or organization Submission has major eors elated to citations, grammar, spelling, syntax, or organization that negatively impact eadability and articulation of main ideas Submission has critical eors elated to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Earned Total 100%

Khushboo · Accepted Answer

Company Selected:  Amazon Inc. is the selected Company for the analysis purpose.
A Brief Introduction:
 The audit can be defined as the examination or the inspection of the different types of books of accounts of the entity and it is followed by the physical checking of the certain line items of financial statement such as cash and inventory to make sure that all the departments of the entity are following the documentary system of the entity. The audit of the financial statement conducted by the auditor provide assurance to various users such as management, creditors and lenders, shareholders, government and general public that the financial statement of the company is providing a true and fair view regarding the financial position of the company and the statement are also free from any type of material misstatement (Hanim Fadzil, F., Haron, H. and Jantan, M. 2005). 
Analysis of the audit process including the analytical procedures used to investigate the selected business transactions:
Analytical procedure is the important part of the audit and it deals with the comparisons of the amount recorded with the past records or expectations developed during the audit process. The analytical procedures are used to evaluate both financial and non-financial data of the entity. It enables the auditor in analyzing the relationship and variations which are not consistent with other important information which is deviated from the estimated amount.
Audit & Analytical procedures:
The audit plan is the roadmap regarding the auditing approach in the entity. It enables the auditor of Amazon Inc. to address the objective of the audit. It includes comparisons of the account balances and computation of the significant ratios of the entity and thereafter comparing it with the industry ratio or the previous year ratios and also it includes computing the ratio using both financial and non-financial data. The auditor after collecting the required information and draft the report and forward it to management of the company and on the basis of report represent its true and fair view on the financial statement.

ACC 640 Milestone One 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,...

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