Suppose you are a new auditor with a small audit firm on the audit of Juan Stuarts

Question:

Suppose you are a new auditor with a small audit firm on the audit of Juan Stuart’s Daily News, a large private with a significant minority stockholder that operates media outlets across the United States. The majority stockholder manages the day-to-day activities of the business. Because your audit firm is a new, small firm, it has yet to formulate its own guidance concerning the audit of ICFR. You remember hearing a lot about Section 404 of the Sarbanes Oxley Act of 2002 concerning internal control audits.

Required:
a. Does Section 404 of the Sarbanes Oxley Act pertain to the audit of Juan Stuart’s Daily News? Why or why not?
b. Is there anything related to ICFR that you are concerned with as the financial statement auditor of Juan Stuart’s Daily News?
c. Who are the related to Juan Stuart’s Daily News? How do good benefit them? What ICFR issues would be of concern to the different ?
d. Develop audit steps to test the ICFR issues of concern. Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...