Perform preliminary analytical procedures

Assignment Help Accounting Basics

Reference no: EM133357665

Case: To provide students with an opportunity to apply knowledge and develop analytical, research and written communication skills.

The Project The student should perform due diligence to gain a good understanding of the company to develop a detailed audit plan.

Due Date The due date for the project will be the last class in the semester for your section of the course.

Company Selection Each student will be assigned a Canada-based retail company that are publicly listed.

Annual Report Unless specified by your instructor, you are responsible for finding your own company information by searching various corporate sites or https://www.sedar.com

Please note that you should also use news items from business periodicals and use other library and internet reference sources in performing your analysis.

Length and Structure of the Report The text of the written report should not exceed 15 pages, using a 12-point font and 1.5 spacing. References should be appropriately cited. This includes a bibliography as well as in-text citations. The 15 pages referred to above should include a bibliography. In addition to those 15 pages, any graphs, tables or other numerical information that you deem relevant to your analysis should be included in appendices to your report.

Required Assume that you are a senior auditor, and you are required to prepare the audit plan for the assigned company. Perform a thorough analysis of the company to support your recommendation. Your report should be well reasoned and supported and should include both introductory and concluding paragraphs.

Your report should include:

Question 1. Review the company's background information and provide a brief description of the company's primary business activities. This description should include a brief historical summary, details concerning competitors, if relevant, the company's position within the industry, directions for the future, etc.

Question 2. Perform preliminary analytical procedures. Examples of this analytical procedures include ratio analysis, comparison to industry, common size analysis, trend analysis...etc.

Question 3. Determine materiality and assess risk based on the understanding obtained in the first two steps. Assume that investors are the main users of the audit financial statements.

Question 4. Determine inherent risk, control risk, and detection risk. Support your conclusion with evidence from the company's significant events and accounts.

Question 5. Determine the best audit strategy. Setthe scope, timing, and direction if substantive audit strategy and combined audit strategy is implemented. Support your conclusion to lend credibility to your recommended strategy.

Question 6. Develop a detailed audit plan. This includes specifying assertions at risk and procedures to address this risk.

Reference no: EM133357665

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