Assignment
Part A
As an auditor, you must have a general understanding of the aspects of a company-both a financial and an operational perspective. This entails understanding the 5 business cycles processes of a company, which are as follows:
• Revenue
• Purchasing
• Human Resources
• Inventory Management
• Financing/Investing
Select 2 business cycles for which you will prepare an audit program. After you have selected the two business cycles, you will need to develop an assertion, possible error, control, and test step for each. You will complete the exercise with 2 5x4 charts. An example of the chart is as follows:
AssertionPossible ErrorControlTest Step
Part B (500-1,000 words)
Discuss potential misstatements as they relate to your two business cycles. Determine how they would affect the audit as well as the report.
Chart
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ASSERTION
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POSSIBLE ERROR
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CONTROL
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TEST STEP
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Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.