Need help with milestone 2 ACC 640 , the attached file includes rubrics and guidelines

ACC 640 Milestone Two Guidelines and Rubric Auditing is a valuable skill in accounting and business, as the odds are very high that you or your organization will be subject to a compliance, federal, IRS, internal, government, or revenue audit at one point in your career. Accountants are required to make professional judgments on both the financial accounting issues and internal accounting forecasts within their organization. The auditor must provide fair, unbiased, materially correct information for investors, employers, employees, and independent stakeholders. This course will help you navigate the relevant processes to provide that unbiased, accurate information. For Milestone Two, you will submit a draft of risk factors as identified for all of the major business transactions conducted by your chosen company. Analyze the income statement, balance sheet, and cash and revenue for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP) or International Financial Recording Standards (IFRS). Based on your analysis of risk, devise a statistical and judgmental sampling program for the audit universe. Recommend the most preferable audit testing procedure based on the audit universe items sampled. Prompt: Analyze potential risk factors in all the major business transactions using the information you have gathered in previous milestones. Specifically, the following critical elements must be addressed: A. Analyze the income statement for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP) or International Financial Recording Standards (IFRS). B. Analyze the risk factors and compliance issues with GAAP or IFRS on the balance sheet. C. Using the internal control, analyze the cash and revenue for potential risk factors. 1. What risks need to be documented? 2. How does this information compare to the company or industry averages, or the company's past performance? D. Explain the audit universe and how you identified it. E. Based on your analysis of risk, devise a sampling program for the audit universe. F. Choose the most preferable audit testing procedures that could be used in the field, based on the audit universe items sampled in this situation. Rubric Guidelines for Submission: Your paper must be submitted as a 3-4-page Microsoft Word document with double spacing, 12-point Times New Roman font, oneinch margins, and at least three sources cited in APA format Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Factors: Statement Proficient (100%) Analyzes the income statement for any potential risk factors or compliance issues with GAAP or IFRS Factors: Sheet Analyzes risk factors and compliance issues with GAAP or IFRS on the balance sheet Factors: Control Analyzes the cash and revenue of the company for potential risk factors using the internal control Factors: Explain Explains the audit universe and how it was identified Factors: Devise Devises a sampling program for the audit universe based on the risk analysis Factors: Procedures Chooses an audit testing procedure that could be used and justifies why it would be preferable for this situation Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Needs Improvement (75%) Analyzes the income statement for any potential risk factors or compliance issues with GAAP or IFRS, but analysis lacks depth or detail Analyzes risk factors and compliance issues with GAAP or IFRS the balance sheet, but analysis lacks depth or detail Analyzes the cash and revenue of the company for potential risk factors using the internal control, but analysis lacks depth or does not reference the internal control Explains the audit universe and how it was identified, but explanation lacks depth or detail Devises a sampling program for the audit universe based on the risk analysis, but the documentation of risk lacks depth or detail Chooses an audit testing procedure that could be used and justifies why it would be preferable, but justification is inaccurate or inappropriate Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Not Evident (0%) Does not analyze the income statement for any potential risk factors or compliance issues with GAAP or IFRS Does not analyze risk factors and compliance issues with GAAP or IFRS on the balance sheet Value 16 Does not analyze the cash and revenue of the company for potential risk factors using the internal control 16 Does not explain the audit universe and how it was identified 16 Does not devise a sampling program for the audit universe based on the risk analysis 16 Does not choose an audit testing procedure that could be used nor justify why it would be preferable 16 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 4 Earned Total 16 100% Running head: DRAFT OF PROCEDURES AND FIELD WORK Draft of procedure and field work Prof: Bryan Strang ACC 640 Ismail Amar Southern New Hampshire University June 6 2016 1 DRAFT OF PROCEDURES AND FIELD WORK 2 Amazon Company These are a scope of money related review forms which helps the inspector to full learning of the matter of the customer whom he is serving. It will characterize and distinguish conceivable danger ranges influencing the business. Planning stage In this stage, I will need to use to comprehend the business, decide the ranges that are under high dangers and in the way of arranging, timing and reach out of other review methods. The diagnostic methods in this stage is significantly in light of the between time budgetary reports, spending plans and even other administration accounts. The logical methodology will demonstrate some significant regions of dangers that else he couldn't have noted. I will likewise utilize scientific methods to audit the nonfinancial data. For instance looking at the quantity of representatives that are utilized in the different years. Using Analytical procedures as substantive tests Some of the time, as a reviewer I will keep an eye on the viability of the methodology in the company. This will diminish the discovery hazard in the monetary articulations. With a specific end goal to distinguish the dangers that is included in the systems that are utilized by the administration, then utilizing the explanatory techniques as substantive tests. Contrast the comparable information and a portion of the earlier year's budgetary information and different customers that are inside the business. Proportion examination will likewise decide the information inconsistencies that is accessible in the business. This will be effectively decide by showing it through diagrams (Davis, 2005). Pattern investigation will likewise help the reviewer to process information for quite a long while and years and figure for every period with a specific end goal to decide the level of consistency of information. When using analytical procedures as substantive tests, I must consider the following; The goals of the methodology in landing with results that are dependable The relationship of the data given and the reach out of every supporting each other as amassed data DRAFT OF PROCEDURES AND FIELD WORK The similarity of the data overall data and, The consistency of the data archived and gave by the administration 3 Note: The dependability of the data that is gotten from the utilization of expository techniques as substantive tests relies on upon whether the examiner got the proof from the inward or the outside source (Gilbert & Terry, 2005). Data from the outside gatherings is more solid when contrasted with the interior wellspring of data. Analytical Procedures as part of overall Review of the Audit At the point when the review is appropriately finished, then I have to utilize the investigative strategies to survey the review so as to make a conclusion with reference to whether the money related proclamations all in all speaks to reality of the substance. The conclusion that is gotten from the consequences of the methods must validate with each other concerning the individual segments of the review (Power, 1999). The utilizing the logical method as the review audit, may show a portion of the territories which require further examinations. For instance: Territories that demonstrated deviations or suspected connections. For instance zones with examples that veered off from anticipated examples. Consistence with the universal evaluating norms and the compelling dates for arrangement of monetary articulations among different perspectives which the reviewer may indicate basic concern. The steps I would take to review the company's business transactions First I would consider the key areas of interest. These will include; The zones of high hazard, for example, offices taking care of trade and acquirement out the firm Policies execution and isolation of obligations in the association. This will recognize the likelihood of the one single capable individual in the association controlling the exchanges in the association. Meet the administration and representatives and make inquiries. This will see whether the data gave from the two finishes will rhyme. DRAFT OF PROCEDURES AND FIELD WORK 4 Finally, consider the persistent reviews and its discoveries lastly make a subsequent meet-up recognize what changes have the administration received from the proposals that were made in the before reviews. How to utilize analytical procedures when reviewing business transactions While surveying the organization's exchanges, the systematic strategies will help me to recognize how the different data of confirmation gave could be in amicability or they are clashing with each other (Trochim, n.d.). For instance I will keep in touch with the loan bosses requesting that they affirm what they owe the firm. From their answer, I would consider their reaction and relate it with what the administration has given. On the off chance that I will take note of any deviations then I will burrow to look for proof from different wellsprings of confirmation. I will likewise inquire from the representatives and administration and mention objective facts where important. Appropriate fieldwork needed in high-risk business transaction When you discover that the organization's exchanges are at high hazard, then as a reviewer you have to survey the organization's bookkeeping systems. Given the money and the income as our case in this way, I will need to survey the anticipated income and the real income. Any deviations that are noted then the administration will need to clarify in point of interest. I would likewise consider the past information on of income eras and consider the conceivable reasons for the deviation. On the other side, the level of insignificant money must be kept up inside the levels set by the administration. This will empower the administration to minimize the robbery of money (Jolly, 2003). I will likewise gone through the interior controls and bookkeeping arrangements embraced by the firm keeping in mind the end goal to decide its viability and dependence in giving solid data. Things needed in the field to review high-risk business transactions For this situation I will require the fitting number of review group, working papers, the past information of the firm and the present information demonstrating business exchange. I would likewise require to be given receipts of all the income exchanges and the money consumptions I the association. This will help in the correlation of the real information arranged for the different years. DRAFT OF PROCEDURES AND FIELD WORK 5 Administration outlines: this will demonstrate the stream of isolation of obligations inside the association. This will empower the reviewer to decide how exchanges are recorded inside the association. Could you convey this information through charts or other supporting documentation? Evaluators are constantly required to archive their last provide details regarding the last reporting. Consequently, I would consider utilizing story notes to give all the essential data I accumulated in the field. This will clarify the planning, who did the review and the discoveries of the review and any important data. I can likewise utilize diagrams keeping in mind the end goal to permit the ensuing examiner to note regions under danger through the stream outlines. From the diagrams will shade territories with various hues to demonstrate distinctive size of danger. Here is the test to assess appropriate assertions for designated high-risk business transactions The auditor should consider all the transactions based on the assertions below Occurrence: The recorded exchanges more likely than not happened in the association. The exchange probably happened and the money must be recorded. Completeness: All exchanges must be recorded in the budgetary explanations. The genuine income deals must have be recorded precisely. Accuracy: The exchanges must be recorded in the suitable sums. Both the units sold and the income created must be exact and overhauled. Cut-off: Exchanges recorded in the bookkeeping time frames. The money and the income must be recorded in the suitable year. Existence: The genuine money must exist and not only the supposition of its presence. Classification: All the income exchanges must be recorded by appropriate records. This will stay away from concealed income exchanges. Note: Every one of the exchanges must be affirmed taking into account the above affirmations with a specific end goal to guarantee that the reviewer will settle on an educated choices when giving his last assessment (\"The financial,\" 2012). DRAFT OF PROCEDURES AND FIELD WORK 6 References Davis, Robert E. (2005). Information technology auditing: An adaptive process. Pleier Corporation. ISBN 978-0974302997 Gilbert, W. Joseph and Terry, J. Eagle (2005). The use of Control Self-Assessment by Independent Auditors. The CPA Journal. Power, Michael (1999). The audit society: Rituals of verification. Oxford: Oxford University Press. Trochim, W. M. K. Probability sampling. Research Methods Knowledge Base 2nd Edition. Jolly, Adam (2003). Managing business risk. A Practical Guide to Protecting your Business. Kogan Page Limited p. 6-7. ISBN 0-7494-4081-3 The financial risk assessment report of Indiana department revenue. (2012). Deloitte and Touch