Instructions:

After studying all the resources required for Module 3, carefully read the instructions to complete the following assignment. There are two (2) parts to this activity.

Part 1: Writing

1. According to Franklin (n. d.), to fail to plan is to plan to fail (qtd. in Murdock, 2022, p. 36). Briefly argue for the importance of this phrase. 2. What is professional skepticism and how does it relate to the integrity and integration of organizational components? 3. wHAT ARE the five (5) types of operational risks.

Part 2: Audit Plan Use the following case study to prepare an audit plan. Your role as a manager is to make sure that the entire audit is planned and its steps are well documented. We present to you the tutorial How to make an audit plan, which will guide you in completing the plan efficiently and effectively. Case study: After two successful years as an auditor at Perez & Rodriguez, the senior partners decided to appoint you as audit manager in charge of auditors at different levels. You are now facing your first project as manager and it will be your responsibility to plan the operational audit of a company. The auditors in your charge have presented you with their worksheets from the first stage of the audit, among which there is a list of the following deficiencies: a. The company has made many loans, but has no control over the use of these loans or where they came from. b. The company operates with a lot of equipment, some new and some old, but the depreciation process is not clear. c. There are doubts as to who is authorized to enter the computer center and whether access security rules are followed. d. Customers complain that to complete a transaction they have to go to many desks. e. The fleet of vehicles appears to be smaller than what the company reports.

1. Based on the deficiencies mentioned in the case, what type of field process would you apply to each deficiency to obtain evidence? (Each deficiency or finding may require more than one process to obtain evidence). a. b. c. d. e.

2. Choose one (1) of the deficiencies mentioned in the case and prepare an audit plan. Remember that, to learn how to prepare an audit plan, you should see the tutorial How to prepare an audit plan? You will be assigned three (3) auditors. Therefore, do your plan taking this into consideration.

Remember that "to fail to plan is to plan to fail" (Franklin, cta. in Murdock, 2022). General instructions for completing the audit plan:

1. Header: The header includes the name of the firm, name of the company audited, type of audit, date and audit number. 2. Steps: Included as the first step is the initial meeting, follow-up meetings in between and final meeting. The steps have a logical order. Each auditor will be assigned one task per day. If an auditor works on more than one task on the same date, it is necessary to justify why. 3. Procedures: The procedures area clearly details what the auditor will do. 4. Auditor's initials: The initials of the auditor responsible for each task are included. 5. Reference numbers: The reference numbers relate to the task number, auditor and audit number. 6. Signature: At the end of the plan, the student will sign in the corresponding space as manager.

Audit plan

Perez & Rodriguez, CPA
Auditee - XYZ Corporation
Audit [type of audit] ####
Audit No. ##-####
Step	Procedure	Auditor's Initial	Date	Worksheet Reference
Received by: ________________________________
Approved by: _______________________________