This assignment is so confusing to me, please help so I don't let the rest of my team down. I am responsible for preparing audit programs for PPE (Fixed Assets) and Notes Payable. I have no clue where to begin for Southwest Airlines. This is the simple of it, but below are the instructions given that I find quite confusing. The company we are using is Southwest Airlines.

Consider and discuss the specific risks and nature of the company you will be auditing and create comprehensive work programs for the Acquisition, Payment, Property Plant, and Equipment (Fixed Assets), Notes Payable and Owner's Equity accounts and cycles.

Submit a 700- to 1,050-word document that includes the following:

Audit steps for tests of controls, balances, transactions, analytical procedures, etc. as well as other considerations such as sample size and sample methodology.

A brief summary page should be included in this document, 525 to 700 words, for each of the audit programs. Include in this summary specific financial information gleaned from the current Form 10-K used to perform an analysis of work program steps. For example, if the team noted significant swings in the Fixed Assets balance year-over-year, identify these swings, and how you address them in your work program (this is in essence an audit procedure - analytical review).

Click the Assignment Files tab to submit your assignment in a Microsoft Word document.

Purpose of Assignment

Note: In ACC 492, the students will create a number of audit programs in Weeks 2 - 4. This Grading Guide can and should be used for all of these audit programs.

An audit program is a step by step document that outlines procedures laid down by an auditing firm that must be followed in conducting an audit during the fieldwork phase of an audit. Audit programs serve to identify the risks, controls, and testing procedures designed to address the risk and adequacy of controls associated with a particular business cycle or account (cash, fixed assets, revenue, expenses, acquisitions, etc.).

Audit programs are a link between the pre-planning or planning phase of an audit and fieldwork. Having students create a series of audit programs for various business cycles and accounts helps prepare them for the process of thinking through risk identification and controls and transaction testing, which are performed during fieldwork.

Templates can be used but the language of the tests need to be specific to the company the students selected and to the business cycles and accounts tested. Templates can be in Word or Excel, but should include a place for objectives, auditor signatures, test procedures, exceptions, dates, etc.

Grading Guide

Content	Met	Partially Met	Not Met	Comments:
Addresses specific risks, control activities, and testing procedures associated with their selected company and with the specific business cycles and accounts.
Contains procedures for both test of controls and substantive tests. Sampling sizes and rationale are also addressed.
Presents the audit steps in a clear, cohesive, and relevant manner.