Audit Report paper

It can be about any company

The contents of the two parts of the assignment should be:

Part 1 - Analysis

• Introduction
• Company Background: Include briefly information on industry, main products, major financial statement items etc. Provide the link to the financial statements.
• Audit Areas/Functions for Internal Audit: Indicate the areas/functions selected (maximum 2) for internal audit and your rationale for selecting them [you can use the risk factors as stated in 10K (include page #) or you can give your own reasons which should be well substantiated]
• Internal Controls: List the control objectives for the selected areas/functions and describe a total of four internal controls that should be existing and working effectively in the selected areas. The controls can be distributed in the two areas you had selected.
• Audit procedures: Describe the audit procedures you would perform to test the controls. Briefly describes the steps. The resultant issues (four in all) will be described as Audit Observations in the Audit Report along with Audit Recommendations and Management Responses/Action Plans.
• Addressing the Audit Report: Describe to whom you will address the Audit Report

Part 2 Audit Report

Audit Reports come in many formats. You can choose any format. However, the report should include at the minimum, the following:

• Should be appropriately addressed
• Executive Summary (include an overall Audit Opinion and the rationale)
• Detailed Audit Report
  • Background
  • Objectives of audit
  • Scope of Audit
  • Audit approach (How the audit was performed)
  • Audit Observations, Audit Recommendation(s) and Management Responses/Action Plans, for each observation. The Observations should have risk ratings.