Write an audit plan. Note that this paper is to be written from the perspective of an auditor and not from the perspective of an analyst that is performing an analysis of a company’s financial statements. The perspectives are quite different.
Details of the Assignment
You are the new auditor for the SEC 10 company that you selected and was approved by the Professor. Another auditor performed the audit last year.
As the new auditor, you are to develop a comprehensive audit plan. The auditing standards describe the components of what is to be included in an audit plan.
You are to describe accounting and auditing issues in the audit that you will face as the new auditor. You are to identify the risks that the company faces as well and how these risks will affect the audit and how you will mitigate the risks. For example, if you select a company that has overseas manufacturing plants which produce inventory—what approach will you take to observe the inventory that is in the U.S. and overseas? What will you include in your audit plan? What are the risks related to inventory and the year end inventory value reflected on the balance sheet?