Zap It! Assignment: Please note that there are three worksheet tabs appearing below. Please the names of group members who worked on the assignment here: You are auditing Zap It!, Inc., a skin care products company. Its latest product is an acne removal system involving hand held dehumidifiers and laser beams. The following is information that may help you with your audit: 2. 1. The skin care market is highly competitive with several companies battling for market share. Products in this market tend to experience short life cycles with biotechnology advancement 3. Early this year, a well-known laser hair removal product was adapted for the skin care market at a slightly lower price point. All products in the market have experienced price ressure. The VP of marketing indicated that the advertising budget increased by 10% this year. 4. 5. Internally, the employee motivation campaign is centered on the phrase, "Whatever it takes!" in which employees are encouraged to do whatever it takes to satisfy the customer. The phrase is also used to motivate employees and encourage cooperation in the financial and accounting operations of the organization. I 6. The company's internal audit function is a desirable training ground to ascend to the management function in the company. Internal auditors generally serve about two years on the staff before moving on. 7. The audit committee is chaired by the CFO and is composed of the directors of human resources, marketing, production, and R&D.

Zap It! Assignment: Please note that there are three worksheet tabs appearing below. Please the names of group members who worked on the assignment here: You are auditing Zap It], Inc., a skin care products company. Its latest product is an acne removal system involving hand held dehumidifiers and laser beams. The following is information that may help you with your audit: 1. The skin care market is highly competitive with several companies battling for market share. 2. Products in this market tend to experience short life cycles with biotechnology advancement 3. Early this year, a well-known laser hair removal product was adapted for the skin care market at a slightly lower price point. All products in the market have experienced price pressure. 4. The VP of marketing indicated that the advertising budget increased by 10% this year. 5. Internally, the employee motivation campaign is centered on the phrase, "Whatever it takes|" in which employees are encouraged to do whatever it takes to satisfy the customer. The phrase is also used to motivate employees and encourage cooperation in the financial and accounting operations of the organization. 6. The company's internal audit function is a desirable training ground to ascend to the management function in the company. Internal auditors generally serve about two years on the staff before moving on. 7. The audit committee is chaired by the CFO and is composed of the directors of human resources, marketing, production, and R\&D. Part 1: Use this worksheet to show any calculations that you would make as the auditor. Label all of your work. Part 2. Risk Analysis Identify a) any risk factors related to acceptable audit risk, inherent risk, control risk, or fraud risk, and b) any accounts and assertions that require additional audit attention based on your analysis of financial information and risk factors. . If there are no areas that appear particularly risky, support your conclusion with calculations and reference to background information. If there are areas that appear risky, support your conclusion with calculations and/or reference to background information. Part 3: Risk Management How would you manage any risks that you identified above. Specifically, indicate the evidence that you would accumulate and specific audit procudures that you would execute. The CFO at Zap It! frequently questions auditors as to why they need the information that they have requested and suggests alternative sources of information. 9. Selling expenses are composed mainly of advertising and sales commissions. All sales have been made on 10% commission over the last three years. 10. The company was able to successfully negotiate the restructuring of a bond issue that became due this year. The new terms deferred the cash payment, allowing the company to settle its other obligations as they became due