As the new auditor, you are to develop a comprehensive audit plan. Theauditing standardsdescribe thecomponents of what isto be includedin an audit plan.

You are to describe accounting and auditing issues in the audit that you will face as the new auditor. You are to identify the risks that the company faces as well and how these risks will affect the audit and how you will mitigate the risks. For example, if you select a company that has overseas manufacturing plants which produce inventorywhat approach will you take to observe the inventory that is in the U.S. and overseas? What will you include in your audit plan? What are the risks related to inventory and the year end inventory value reflected on the balance sheet?