Background You are the Auditor-In-Charge employed at Whitmore and Brilliant Students, LLC, a local CPA firm. You are planning an audit of Wayne State University. The firm has been on this audit for 2 years and it is your first time working on the audit. There are 120 hours assigned to this engagement. Please respond to the questions below. 25 points Planning the Audit: 1. What are some procedures you would perform to plan the audit? List at least five. (10 points) 2. What are some risks that could exist in the higher education industry? Do these risks impact the financial statements? List at least 5 risks. Brainstorm with a classmate if you want as audit teams brainstorm risks together. And remember google is your friend (risks in Higher Education). (10 points) 3. How would you gain an understanding of the internal controls that your client has in place to reduce the occurrence of risks? (5 points) 4. Based on your preliminary risk discussion with University management, the following risks and controls were provided. Note at least one possible audit procedure you would perform to test the control; and a financial statement assertion, if any, related to your objective/audit procedure. Where there is no control, identify a control that you believe would address the risk and an audit procedure you would perform. 25 Points Risks (What could go wrong) Control (What can be done to reduce or prevent the risk) What financial statement assertion, if any, are you testing? One Possible Audit Procedure (what can the auditor do to test or determine if the control is working) (Existence, Occurrence, etc.) Inaccurate Student Accounts Receivable balances System controls built into our accounting information systems. Review of balances; monitor transaction activity; and periodically test the system. Disruption of business operations (i.e. COVID-19) Business continuity plan has been established and communicated to all faculty and staff. And remote work policies established. Depreciation expense The accounting system is inaccurate. calculates annual depreciation based on the method selected and useful lives entered. We review the system annually to ensure it is working properly. Theft of cash. Segregation of duties along with cameras near the registers. Accounts are misclassified Accounting staff review transactions for proper classification