Reference no: EM133584482

Professional Auditing

Assessment Task:
To complete this assessment task, you will need to adopt Crest Outfitters provided in the Case Study of the textbook (Moroney, et al. 4th edition, 2020). The objective of this task is to provide a draft audit plan for investment and accounts payable related accounts at Crest Outfitters.

Attempt the following questions and provide working papers to record yourevaluation of internal controlsand plans of control tests. (Please note some references might not available in the Case Study so you can refer to reasonable examples or documents obtained from other sources such as listed companies or practices that you experienced from your work)

Part A
As the engagement partner, you are responsible for the evaluation of internal controlsregarding investment and accounts payable related accounts at Crest Outfitters. You need to answer following questions and record your assessment outcomes in the working paper. You can create your own working paper.
1. Identify transactions related to investment and accounts payable accounts.
2. Determine WCGW (what can go wrong).
3. Describe risks associated to financial statement accounts and assertions related to investment and accounts payable.
4. Identify internal controls in place to prevent or detect the risk of misstatement.
5. Evaluate control risks.
6. Comments on strength (minimum 1 item) and weakness (minimum 1 item) of the client's internal controls for investment and accounts payable.
7. Record the audit plan in the working paper.

Part B
You are responsible for control testsregarding investment and accounts payable related accounts at Crest Outfitters. You need to describe the required audit procedures to perform control tests ofinvestment and accounts payable related accounts at Crest Outfitters. Answer following questions and provide your audit plans in the working paper. You can create your own working paper.
8. Identify objectives/assertions related to control tests.
9. Determine controls activities related to assertions.
10. Describe the extent of internal control tests.
11. Apply appropriate proceduresor techniques for control tests
12. Recordyour plan in the working paper.

Referencing:
• You need to find at least 4 references to support your arguments or evaluation.
• Harvard Referencing Style is applied.

Attachment:- Case Study.rar