Choose a publicly traded company and research its annual report. (If you cannot find it online, you can go to the U.S. Securities and Exchange Commission Web site and locate a copy). These results have been audited, but for this exercise, they will be viewed as if they have not.

Read the annual report and any other news items involving the company, and then complete the following tasks:

• Create a framework for your audit procedure using the Audit Risk Approach. Your framework should include the following:
  • At least 3 examples of how you would mitigate risk in your audit
  • At least 3 accounts or areas that you would focus your attention on for this audit
  • An outline of tests and procedures that you would employ based on your company
  • A detailed analysis of the sampling techniques that you would utilize for each of the 3 accounts or areas that you chose
  • An explanation of the type(s) of documentation that you would require as audit evidence
• Discuss the levels of assurance that can be provided on audit reports.
• Explain how the internal controls of a company can impact the overall business.
  • Define 2 internal control areas that you would focus on with your business.

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