Audits are like vacations - the more planning you put into it, the better the outcome. Therefore, planning is the most important part of every audit. The completion of the audit is time-sensitive; therefore, placing emphasis on planning ensures that an auditors time is used wisely. If an audit firm is to make a profit, planning will help keep activities within the contract rate.

Select one of the following industries:

1. Clothing manufacturing

2. Pharmaceuticals

3. Food distribution

Then, search the internet for a publicly-traded company in one of these categories. Locate the most recently published financial statement, and then complete the following:

a. Provide an overview of the industry, the company, and identify primary competitors.

b. Use the current state of the industry to identify the key concerns you would have if your firm were to enter into an engagement with this company.

c. Complete the assignment with an explanation of the critical items you would include in the audit plan.