Discuss potential misstatements related to business cycles

Assignment Help Accounting Basics

Reference no: EM132346210

Assignment: Part A (from Unit 4)

As an auditor, you must have a general understanding of the aspects of a company-both a financial and an operational perspective. This entails understanding the 5 business cycles processes of a company, which are as follows:

• Revenue

• Purchasing

• Human Resources

• Inventory Management

• Financing/Investing

Select 2 business cycles for which you will prepare an audit program. After you have selected the two business cycles, you will need to develop an assertion, possible error, control, and test step for each. You will complete the exercise with 2 5x4 charts. An example of the chart is as follows:

AssertionPossible ErrorControlTest Step

Part B: (500-1,000 words)

Discuss potential misstatements as they relate to your two business cycles. Determine how they would affect the audit as well as the report.

Chart:

Assertion	Possible Error	Control	Test Step

Reference no: EM132346210

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