Alpine Cupcakes, Inc.

Q2. Evaluate Garcia and Foster's documentation of their understanding of the client's environment (workpaper B.2.1) Describe any problems you find and provide suggestions for improvement.

This is the question. I don't know why it puts the document upside down, I tried turning it and keeps coming in upside down.

Alpine Cupcakes, Inc. Audit Case Assignments they conducted the audit. Note that other papers are client documents that Garcia and Foster collected and kept in support of their audit. Finally, note the numbering system in the lower right-hand corner of each page and how each paper within the audit is numbered and linked back to the ai In this part of your assignment, you will examine the firm's audit documentation in relation to the auditors' performance on several risk assessment procedures. Please complete the following tasks: Q1. Research, cite, and summarize (in one or two sentences per standard identified) the auditing standards as they relate to the auditors' responsibilities in the following areas: a. Obtaining and documenting an understanding of the client's environment, including internal controls. GOGU PCabos.org A5 210.aspy b. Materiality assessment in planning and performing the audit. c. The audit risk model. d. Preliminary analytical procedures. O2. Evaluate Garcia and Foster's documentation of their understanding of the client's environment (workpaper B.2.1.) Describe any problems you find and provide suggestions for improvement. This question relates to Stcp 2 of the Garcia and Foster Audit Plan. 03. Review Garcia and Foster's calculations of materiality thresholds for the 20/2 Audit (workpaper B.2.1). Determine if the auditors correctly applied the materiality concept in their risk assessment procedures. Describe any problems you find and provide suggestions for improvement. This question relates to Step 2 of the Garcia and Foster Audit Plan. Q4. Evaluate other aspects of the Audit Risk Assessment memo (workpaper B.2.1.) In particular, review the auditors' application of the audit risk model and brainstorming processes. Describe any problems you find and provide suggestions for improvement. Identify and document any additional problems you discover with the memo. This question relates to Step 3 of the Garcia and Foster Audit Plan. 95. Evaluate the preliminary analytical procedures completed by Garcia and Foster, CPAS (workpapers B.3.1 to B.3.3.) This question relates to Step 2 of the Garcia and Foster Audit Plan. a. Determine if the analyses of account fluctuations were appropriately performed and completed (workpapers B.3.1 and 3.3.2). Review the explanations of account fluctuations provided by the auditors. Describe any problems you identify. b. Determine if the ratio analysis (workpaper B.3.3) was appropriately performed and completed. Review the explanations of ratio fluctuations provided by the auditors. Describe any problems you identify. Q6. Prepare a memo to document your understanding of Alpine assessment of Garcia and Foster's audit risk. Describe the specific risks for Alpine Cupcakes, explain why you believe these factors relate to the Alpine Cupcakes audit, and identify which specific accounts are likely to be affected by these risks. Describe how the audit teams should address the risks identified. For example, the background information mentions that sugar prices may rise. What risks would this present to Alpine Cupcakes? Which accounts would be affected by this risk? How should the audit team address these risks in the audit plan? Cash Module Introduction: The cash module is a comprehensive coverage of the cash account, along with the related processes. Within this module, you will gain a better understanding of important procedures performed by auditors in relation to the cash account and processes. This module includes consideration of both the cash receipt Case Assignment: pg. 3 of 10 Alpine Cupcakes, Inc. Audit Program Audit Year December 31, 20x2 Date WP Ref. # Audit Procedure By A.1 Include relevant financial statement information in workpapers. A. Include Alpine Cupcakes, Inc. Financial Statements for 785 years ended 12/31/20X2 and 12/31/20X1. B. Include the December 31, 20X2 Trial Balance. 7ES 02/25/2013 4.1.4-1.8 02/25/2013 A.1.9 SDM 9/15/20x2 B.1.1-1.2 B.1 Obtain additional financial data. A. Obtain the following financial statement data for the most recent quarters: Balance sheets for most recent quarter and 12/31/20X1 and Income Statements for most recent quarter and corresponding prior year's quarterly data. B.2 Perform risk assessment procedures. A. Using Garcia & Foster methodology, set the Planning Materiality (PM), Tolerable Misstatement (TM), and Summary of Audit Difference (SAD) thresholds for the 20x2 Alpine Audit B. Obtain an understanding of the client and its environment, including internal controls. C. Determine the levels of inherent risk, control risk, and detection risk. SDM 9/15/20X2 B.2.1 SDM 9/15/20x2 B.2.1 SDM 9/15/20x2 B.2.1 SDM 10/01/20X2 B.3.1-3.2 B.3 Perform preliminary analytical procedures. A. Use Alpine's 2nd quarter 20x2 data (if available) to determine if there are any accounts with unusual fluctuations. The firm's strategy identifies unusual fluctuations as a change in the account from prior year where the dollar change is greater than TM and percentage change is greater than 10%. i. Discuss with management any accounts with unusual fluctuations to determine the reasons for these changes. ii. Identify any potential risk (misstatements) that could occur to cause these changes. Garcia and Foster Audit Workpaper Audit Program: pg. 1 of 8 Alpine Cupcakes, Inc. Audit Case Assignments they conducted the audit. Note that other papers are client documents that Garcia and Foster collected and kept in support of their audit. Finally, note the numbering system in the lower right-hand corner of each page and how each paper within the audit is numbered and linked back to the ai In this part of your assignment, you will examine the firm's audit documentation in relation to the auditors' performance on several risk assessment procedures. Please complete the following tasks: Q1. Research, cite, and summarize (in one or two sentences per standard identified) the auditing standards as they relate to the auditors' responsibilities in the following areas: a. Obtaining and documenting an understanding of the client's environment, including internal controls. GOGU PCabos.org A5 210.aspy b. Materiality assessment in planning and performing the audit. c. The audit risk model. d. Preliminary analytical procedures. O2. Evaluate Garcia and Foster's documentation of their understanding of the client's environment (workpaper B.2.1.) Describe any problems you find and provide suggestions for improvement. This question relates to Stcp 2 of the Garcia and Foster Audit Plan. 03. Review Garcia and Foster's calculations of materiality thresholds for the 20/2 Audit (workpaper B.2.1). Determine if the auditors correctly applied the materiality concept in their risk assessment procedures. Describe any problems you find and provide suggestions for improvement. This question relates to Step 2 of the Garcia and Foster Audit Plan. Q4. Evaluate other aspects of the Audit Risk Assessment memo (workpaper B.2.1.) In particular, review the auditors' application of the audit risk model and brainstorming processes. Describe any problems you find and provide suggestions for improvement. Identify and document any additional problems you discover with the memo. This question relates to Step 3 of the Garcia and Foster Audit Plan. 95. Evaluate the preliminary analytical procedures completed by Garcia and Foster, CPAS (workpapers B.3.1 to B.3.3.) This question relates to Step 2 of the Garcia and Foster Audit Plan. a. Determine if the analyses of account fluctuations were appropriately performed and completed (workpapers B.3.1 and 3.3.2). Review the explanations of account fluctuations provided by the auditors. Describe any problems you identify. b. Determine if the ratio analysis (workpaper B.3.3) was appropriately performed and completed. Review the explanations of ratio fluctuations provided by the auditors. Describe any problems you identify. Q6. Prepare a memo to document your understanding of Alpine assessment of Garcia and Foster's audit risk. Describe the specific risks for Alpine Cupcakes, explain why you believe these factors relate to the Alpine Cupcakes audit, and identify which specific accounts are likely to be affected by these risks. Describe how the audit teams should address the risks identified. For example, the background information mentions that sugar prices may rise. What risks would this present to Alpine Cupcakes? Which accounts would be affected by this risk? How should the audit team address these risks in the audit plan? Cash Module Introduction: The cash module is a comprehensive coverage of the cash account, along with the related processes. Within this module, you will gain a better understanding of important procedures performed by auditors in relation to the cash account and processes. This module includes consideration of both the cash receipt Case Assignment: pg. 3 of 10 Alpine Cupcakes, Inc. Audit Program Audit Year December 31, 20x2 Date WP Ref. # Audit Procedure By A.1 Include relevant financial statement information in workpapers. A. Include Alpine Cupcakes, Inc. Financial Statements for 785 years ended 12/31/20X2 and 12/31/20X1. B. Include the December 31, 20X2 Trial Balance. 7ES 02/25/2013 4.1.4-1.8 02/25/2013 A.1.9 SDM 9/15/20x2 B.1.1-1.2 B.1 Obtain additional financial data. A. Obtain the following financial statement data for the most recent quarters: Balance sheets for most recent quarter and 12/31/20X1 and Income Statements for most recent quarter and corresponding prior year's quarterly data. B.2 Perform risk assessment procedures. A. Using Garcia & Foster methodology, set the Planning Materiality (PM), Tolerable Misstatement (TM), and Summary of Audit Difference (SAD) thresholds for the 20x2 Alpine Audit B. Obtain an understanding of the client and its environment, including internal controls. C. Determine the levels of inherent risk, control risk, and detection risk. SDM 9/15/20X2 B.2.1 SDM 9/15/20x2 B.2.1 SDM 9/15/20x2 B.2.1 SDM 10/01/20X2 B.3.1-3.2 B.3 Perform preliminary analytical procedures. A. Use Alpine's 2nd quarter 20x2 data (if available) to determine if there are any accounts with unusual fluctuations. The firm's strategy identifies unusual fluctuations as a change in the account from prior year where the dollar change is greater than TM and percentage change is greater than 10%. i. Discuss with management any accounts with unusual fluctuations to determine the reasons for these changes. ii. Identify any potential risk (misstatements) that could occur to cause these changes. Garcia and Foster Audit Workpaper Audit Program: pg. 1 of 8