Note at least one possible audit procedure you would perform to test the control; and a financial

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Question:

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. Fill in the blanks please.

How can we as the auditor verify/test the control (this becomes our audit step-remember we talked about verifying, recalculating, reviewing, selecting a sample). And finally, are we considering a financial statement assertion (remember knowing these are important-existence, completeness, rights/obligations, accuracy, and presentation/disclosure).

Risks (What could go wrong)	Control (What can be done to reduce or prevent the risk)	One Possible Audit Procedure (what can the auditor do to test or determine if the control is working)	What financial statement assertion, if any, are you testing? (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.
Inventory balance is inaccurate.	An annual physical inventory is performed by competent employees. Also, we use a perpetual inventory system.
Noncompliance with financial aid regulations resulting in fines and penalties and inaccurate amounts in the financial statements.	We have a Chief Compliance Officer and a team of knowledgeable Financial Aid Officers. We monitor and review transactions.
Accounts are properly presented or are misclassified.	We are aware of the Accounting standards to comply with. We have system controls for cutoff procedures and our accounting staff review and approve that transactions are properly classified.