ASSUMING POSITION OF LEAD AUDITOR ON AN AUDIT.

below is the assignment that is due. Also the links that are in the text.

http://lectures.mhhe.com/earthwear/

http://lectures.mhhe.com/willisadams/

http://lectures.mhhe.com/connect/0077732502/student/earthwear_annual.pdf

ACC 645 Milestone One Guidelines and Rubric

Overview: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 perform management duties. 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 write report on client engagement.

Prompt:You will evaluate the corporate structure of EarthWear Clothiers and their annual report and then summarize your findings. You will evaluate the following for your auditing firm, Willis & Adams: independence, knowledge of client industry, and staffing capabilities. Then, assuming that your firm has decided to move forward as a result of your evaluation of internal and external factors, you will explain why it would be appropriate for your firm to accept EarthWear Clothiers as a new client, using examples to support your response.

Specifically, the followingcritical elementsmust be addressed:

I.Client Engagement:The external auditing team has been approached by an organization that hopes to be a new client. You are responsible forevaluating the factors associated with the organization and the external auditing team to determine why it would be appropriate to move forward and accept the organization as a new client.

A.Evaluate thecorporate structureand annual report of the organization, and summarize your findings.

B.Evaluate the following information related to the externalauditing firm, and summarize your findings:

1.Independence

2.Knowledge of client industry

3.Staffing capabilities

C.Assume your firm has decided to move forward. Referring to your evaluation ofinternal and external factors, explain why it would be appropriate for the external auditing team to accept the organization as a new client, using examples to support your response.

Rubric

Critical Elements

Proficient (100%)

Needs Improvement (70%)

Not Evident (0%)

Value

Client Engagement: Corporate Structure

Evaluates the corporate structure and annual report of the organization and summarizes findings

Evaluates the corporate structure and annual report of the organization and summarizes findings, but summary is cursory or contains inaccuracies

Does not evaluate the corporate structure and annual report of the organization

30

1

Client Engagement: Auditing Firm

Evaluates the independence, knowledge of client industry, and staffing capabilities of the external auditing firm, and summarizes findings

Evaluates the independence, knowledge of client industry, and staffing capabilities of the external auditing firm, and summarizes findings, but summary is cursory, contains inaccuracies, or is missing information related to the external auditing firm

Does not evaluate the independence, knowledge of client industry, and staffing capabilities of the external auditing firm

30

Client Engagement:

Internal and

External Factors

Explains why it would be appropriate, based on the evaluation of internal and external factors, for the external auditing team to accept the organization as a new client, using examples to support this response

Explains why it would be appropriate, based on the evaluation of internal and external factors, for the external auditing team to accept the organization as a new client, using examples to support this response, but explanation is cursory or contains inaccuracies, or examples are inappropriate

Does not explain why it would be appropriate for the external auditing team to accept the organization as a new client

30

Articulation of Response

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar,

spelling, syntax, or organization that prevent understanding of ideas

10

Total

100%