Audit Project Instructions Objectives 1. Students will be able to summarize insightful elements of the annual audit report of a public company. 2. Students will be able to objectively interpret the operational and financial data of a public company and its related industry. 3. Students will be able to analyze a public company's financial strength for review by external users. Instructions 1. Choose a company with sufficient and adequate information available online, preferably a publicly traded company. Assess audit and business risks and document your understanding with the client relative to the engagement. 2. Obtain an understanding of the entity by researching the following elements: a. Industry and External Environment b. Business Operations and Processes c. Management and Governance d. Objectives and Strategies e. Measurement and Performance 3. Perform preliminary analytical procedures using common financial ratios and other data analytical tools. 4. Set preliminary judgement of materiality for financial statements as a whole and determine performance materiality. 5. Perform a risk assessment to document the relationship of risks and materiality to audit evidence. 6. Prepare a broad audit plan and strategy using the following: a. What are the major types of transactions and transaction cycles for the company. b. What are the high risks areas? c. What are the low risk areas? d. If management faced significant pressure to meet performance objectives, what opportunities may exist for them to engage in fraudulent reporting? 7. Issue a written audit opinion based on the above information.