Problem:
A contract is awarded to the privately owned company that you work for. It will require the company to submit it's audited financial statements. Audits and audited financial statements are not familiar to the company's owner. Design a report for the owner as the Controller, and explain the work of independent CPAs, auditing standards, ethics in auditing, and how an audit could help your company reduce its information risk.
Include:
- Examine the CPA profession and licensing requirements (Please use New York State's licensing requirements).
- Explain the value of a licensed CPA (as an outside auditor) to your company.
- Take current auditing standards and critique them.
- Include in the audit process and their importance.
- Examine the relation between reducing information risk for decision makers and the role of auditing.
- Explain how independent audits could help the decision makers at your company.