Below is a sample outline for your audit planning memo: A description of the client, its processes, its key players, etc. (1 page for this project) Planned Audit Risk - Low or very low and why? Overall Planning Materiality - discuss calculation and why you chose what you chose Tolerable Misstatement - list balance sheet accounts and the TM for each account and why Prelim Analytical Procedures - See appendix A. Summarize findings here Fraud Brainstorming Session - We met and this is what we discussed (don't tell me what a brainstorming session is) Purchases and Cash Disbursements Cycle IR: CR: Risky Accounts: should agree with your TM calculation Overall Strategy: (substantive vs. reliance) and why? Audit test for each significant account: Sales and Cash Receipts Cycle IR: CR: Risky Accounts: should agree with your TM calculation Overall Strategy: (substantive vs. reliance) and why? Audit test for each significant account: Schedule for the Audit Appendix A - Balance Sheet and Income Stmt. Set up WITH DISCUSSION of differences from prior year. I will only need one submission for each group. Everyone in the group will be assigned the same grade