ACCT 436 UMUC Duke Energy Company Payroll System IT Audit Report Discussion

I’m studying for my Accounting class and don’t understand how to answer this. Can you help me study?

Assignment should be single spaced with double spacing between paragraphs, written in your own words.

Audit Report (2-3 pages)

The purpose of this assignment is to apply the course concepts dealing with the audit engagement and reporting.

You need to select a company of interest. I recommend selecting a company in an industry familiar to you. Do not pick a company with complex businesses such as AIG or JP Morgan. For this assignment, simple is better. Although it is not mandatory, it is advisable to pick a publicly traded company.

For the company chosen, you will need to determine an area to audit based on a determination of the key risks for the company. Some sources of information for your consideration include the company’s 10-K, the UMGC library, trade publications, Internet searches, and/or LinkedIn. Pick something you understand. Do not make the audit too broad. An entire business process is too broad. The audit can be a financial, operational or IT.

Your paper needs to cover the following:

• The reason(s) for selecting the area to be audited. This should be based on your risk assessment.You need to explain how you went about selecting the area to be audited
• The objectives of your audit
• The scope of the audit.Since you have a limited amount of information about the company, you can make assumptions.
• The key audit procedures to be performed in the audit (think steps in an audit program).Explain why you picked these steps.You should have no more than ten steps.You can use a table for this section.The purpose of this part of the assignment is not to create an entire audit program.
• At least four possible findings and recommendations.Give it some thought. Of course, these are not real findings since you have not performed the audit. You just needed to exercise a little creativity. You should write the findings and recommendations as if they will be in a formal audit report.

As you work on this assignment, make sure to avoid these pitfalls:

• You provide a laundry list of risks.
• The audit engagement is not related to your significant risk.
• Your audit would likely be performed by an external auditor. This is not an audit of the financial statements to express an opinion.
• Your paper includes multiple audit engagements.The paper should be limited to a single audit engagement.
• You use generalities for audit steps such as:
  • test internal controls
  • test accuracy, completeness and classification

Attached is a brief example to help you think about this assignment.