(solution) Milestone 2- analyze financial statements for potential risk

(solution) Milestone 2- analyze financial statements for potential risk

Milestone 2- analyze financial statements for potential risk factors, use of internal control, sampling

Milestone 3- Memos summarizing findings to departmental manager and CFO.

ACC 640 Milestone Three Guidelines and Rubric
Auditing is a valuable skill in accounting and business, as the odds are very high that you or your organization will be subject to a compliance, federal, IRS,
internal, government, or revenue audit at one point in your career. Accountants are required to make professional judgments on both the financial accounting
issues and internal accounting forecasts within their organization. The auditor must provide fair, unbiased, materially correct information for investors,
employers, employees, and independent stakeholders. This course will help you navigate the relevant processes to provide that unbiased, accurate information.
For Milestone Three, you will submit a draft of your memos to upper management. First, you will prepare a memo to be reviewed by the chief financial officer
(CFO) of your chosen company that summarizes the audit process conducted. Then, you will assume the role of CFO of the company and prepare a memo to the
Board of Directors as to what potential issues the external audit team might find and what the company?s response should be.
Prompt: Prepare memos with your recommendations to upper management using the findings from your audit report.
Specifically, the following critical elements must be addressed:
A. Prepare a memo to be reviewed by the chief financial officer (CFO) that summarizes the audit process.
1. Explain any sampling or other audit work that could be done, and if you would recommend the company pursue this additional work. Justify
your response.
2. Make recommendations to the CFO on how to mitigate potential risk factors for major business transactions identified in the audit report.
B. Assume you are now the CFO. Prepare a memo to the Board of Directors as to what potential issues the external audit team might find and what the
company?s response should be.
1. Evaluate the findings from the audit report. Be sure to view these findings from the CFO?s point of view.
2. Develop a strategy to mitigate risks identified in the audit report.
3. Describe how the company might implement the strategy based on the findings from the audit report. Rubric
Guidelines for Submission: Each memo should be a 1?3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch
margins, and at least three sources cited in APA format.
Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,
review these instructions.
Critical Elements
Memos: Explain Proficient (100%)
Explains any sampling or other
audit work that could be done and
if the company should pursue the
additional work Memos: Make Makes recommendations to the
CFO on how to mitigate potential
risk factors for major business
transactions identified in the audit
report Memos: Evaluate Evaluates the findings from the
audit report from the CFO?s point
of view Memos: Develop Develops a strategy to mitigate
risks identified in the audit report Memos: Describe Describes how the company might
implement the strategy based on
the findings from the audit report Articulation of Response Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization Needs Improvement (75%)
Explains any sampling or other
audit work that could be done and
if the company should pursue the
additional work, but explanation is
inaccurate or inappropriate
Makes recommendations to the
CFO on how to mitigate potential
risk factors for major business
transactions identified in the audit
report, but recommendations
made are inappropriate or lack
depth
Evaluates the findings from the
audit report through the CFO?s
point of view, but evaluation lacks
depth or detail
Develops a strategy to mitigate
risks identified in the audit report,
but strategy is inappropriate or
lacks depth
Describes how the company might
implement the strategy based on
the findings from the audit report,
but description lacks depth or
detail
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas Not Evident (0%)
Does not explain any sampling or
other audit work that could be
done and if the company should
pursue the additional work Value
19 Does not make recommendations
to the CFO on how to mitigate
potential risk factors for major
business transactions identified in
the audit report 19 Does not evaluate the findings
from the audit report from the
CFO?s point of view 19 Does not develop a strategy to
mitigate risks identified in the audit
report 19 Does not describe how the
company might implement the
strategy based on the findings from
the audit report 19 Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
Earned Total 5 100%