ACC 640 Milestone Three 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 Three, you will submit a draft of your memos to upper management. First, you will prepare a memo to be reviewed by the chief financial officer
(CFO) of your chosen company that summarizes the audit process conducted. Then, you will assume the role of CFO of the company and prepare a memo to the
Board of Directors as to what potential issues the external audit team might find and what the company’s response should be.
Prompt: Prepare memos with your recommendations to upper management using the findings from your audit report.
Specifically, the following critical elements must be addressed:
A. Prepare a memo to be reviewed by the chief financial officer (CFO) that summarizes the audit process.
1. Explain any sampling or other audit work that could be done, and if you would recommend the company pursue this additional work. Justify
your response.
2. Make recommendations to the CFO on how to mitigate potential risk factors for major business transactions identified in the audit report.
B. Assume you are now the CFO. Prepare a memo to the Board of Directors as to what potential issues the external audit team might find and what the
company’s response should be.
1. Evaluate the findings from the audit report. Be sure to view these findings from the CFO’s point of view.
2. Develop a strategy to mitigate risks identified in the audit report.
3. Describe how the company might implement the strategy based on the findings from the audit report.
Ru
ic
Guidelines for Submission: Each memo should be a 1–3-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
Memos: Explain Explains any sampling or other
audit work that could be done and
if the company should pursue the
additional work
Explains any sampling or other
audit work that could be done and
if the company should pursue the
additional work, but explanation is
inaccurate or inappropriate
Does not explain any sampling or
other audit work that could be
done and if the company should
pursue the additional work
19
Memos: Make Makes recommendations to the
CFO on how to mitigate potential
isk factors for major business
transactions identified in the audit
eport
Makes recommendations to the
CFO on how to mitigate potential
isk factors for major business
transactions identified in the audit
eport, but recommendations
made are inappropriate or lack
depth
Does not make recommendations
to the CFO on how to mitigate
potential risk factors for major
usiness transactions identified in
the audit report
19
Memos: Evaluate Evaluates the findings from the
audit report from the CFO’s point
of view
Evaluates the findings from the
audit report through the CFO’s
point of view, but evaluation lacks
depth or detail
Does not evaluate the findings
from the audit report from the
CFO’s point of view
19
Memos: Develop Develops a strategy to mitigate
isks identified in the audit report
Develops a strategy to mitigate
isks identified in the audit report,
ut strategy is inappropriate or
lacks depth
Does not develop a strategy to
mitigate risks identified in the audit
eport
19
Memos: Describe Describes how the company might
implement the strategy based on
the findings from the audit report
Describes how the company might
implement the strategy based on
the findings from the audit report,
ut description lacks depth or
detail
Does not describe how the
company might implement the
strategy based on the findings from
the audit report
19
Articulation of Response Submission has no major e
ors
elated to citations, grammar,
spelling, syntax, or organization
Submission has major e
ors
elated to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
Submission has critical e
ors
elated to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
5
Earned Total 100%