Audit Risk Analysis Project

This Assignment will assess the following course outcome:
Define the role of the external auditor.

The key purpose of the audit risk analysis project is to integrate and operationalize the important concepts and issues you have studied during the term.

You will be assigned a public company for which you will complete an audit risk analysis project. You will assume the role of an audit manager of a public accounting firm who has been asked by an audit partner to assess the acceptability of the given company as an audit client and to write a memo summarizing this assessment.

You are required to analyze the most recent financial data for your assigned company, which is typically obtained from the company’s most recent annual report, the EDGAR website, or any of several online financial databases. You should also obtain other pertinent financial and non-financial data regarding your assigned company. These latter data would include information gleaned from articles appearing in The Wall Street Journal, major metropolitan newspapers, and various business publications concerning the company or its industry; peer group data provided for the company’s industry or sub-industry by such investment services as RMA, Dun & Bradstreet, Moody’s, etc.; and financial disclosure documents filed with the SEC, such as 8-K auditor change announcements.

Sample Solution