Reference no: EM133454187

Case Study: Now that your firm has decided to move ahead with client engagement, the next major step is to plan the audit. For this milestone, you will develop an audit plan that is supported with appropriate auditing standards. You will also conduct a preliminary risk assessment to determine materiality.

For the final project, you will work through components of a case study in which you will assume the role of a lead auditor at Willis & Adams. Your firm has been approached by EarthWear Clothiers to perform an audit. In your role as lead auditor, you will evaluate internal and external factors to determine client engagement, develop an audit plan, determine recommendations for improving internal controls, and communicate the audit opinion. For this milestone, you will develop the audit plan.

Question:

• Your organization has decided to move forward with the audit of EarthWear Clothiers. As lead auditor, you will select one of EarthWear Clothiers' business objectives and an audit plan of their financial statements. The business objectives are:
• Expand further into the global market by launching internet sites into South American countries
• Increase customer base by introducing a new extreme sports product line to attract younger consumers
• Reduce pricing to be more competitive in the marketplace by seeking out additional vendor relationships to lower costs of goods sold
• Implement an employee stock purchase plan to increase productivity and employee morale
• Reduce delivery and distribution time of products and services by adding additional warehouse locations