The assignment is to create an audit programme for one of the risk areas discussed in your assignment one memo.
Please be sure to:
- Provide detail or each risk you select at the statement level (use the logic of the COSO cube from chapter 7). Provide an explanation as to why the areas you assess as risks are in risks.
- Explain why you selected each of the risk assessments for each assertion or why you’ve referenced a CAS/GAAP rule. Simply stating a CAS or GAAP rule is not sufficient.
- Provide examples of controls that you believe are strong/weak and select your audit approach
- Materiality must meet CAS320 requirements, these are the same ones discussed in the past, User’s needs, Volatility, Governance, Basis of overall Materiality, %, $, PM%, PM$, or specific materiality for your program.
- Provide 10 to 15 procedures that reflect your risk assessment (If existence is a high risk, then test existence more)
- Procedures must include a technique; source of evidence relate to an assertion and be specific. be sure to make them specific as to what you want tested (for example Qty or Dollar amount)