Part 1
In preparation for the Bovar Company’s year-end audit, your manager has asked you to create a document about auditing principles and the code of conduct to share with the rest of the internal auditors. You know that the Institute of Internal Auditors (IIA) provides professional guidance and a code of ethics for internal auditors, but you need to revisit that information to create the memo.
Prepare a 2-page document that discusses the following:
Part 2
To assess Bovar’s liability for the upcoming external audit, discuss the following topics:
Discussion Board:
Apply a risk assessment technique to decision making by using the following example:
Assume that you are going to use nonstatistical sampling to evaluate the results of accounts receivable confirmation for the Bovar audit. Results from previous audits have been excellent. Because of the high quality of the controls at Bovar, you have decided to use an acceptable risk of incorrect acceptance of 10%. There are 3,000 accounts receivable with a gross value of $9,601,883. You have decided that an overstatement or understatement of more than $150,000 would be considered material.
Complete the following:
Part 1: 500–750 words; Part 2: Discussion + 200–300 words