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May 29, 2021

Accounting

APA (edition "APA 6"), Business and Management

For Milestone Two, you will submit a draft of risk factors as identified for all of the major business transactions conducted by your chosen company. Analyze the income statement, balance sheet, and cash and revenue for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP). Based on your analysis of risk, devise a statistical and judgmental sampling program for the population. Recommend the most preferable audit testing procedure based on the population items sampled.
Prompt: Analyze potential risk factors in all the major business transactions using the information you have gathered in previous milestones. Specifically, the following critical elements must be addressed:
A. Analyze the income statement for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP).
B. Analyze the risk factors and compliance issues with GAAP on the balance sheet.
C. Using the internal control, analyze the cash and revenue for potential risk factors.
1. What risks need to be documented?
2. How does this information compare to the company or industry averages, or the companys past performance?
D. Explain the population and how you identified it.
E. Based on your analysis of risk, devise a sampling program for the population.
F. Choose the most preferable audit testing procedures that could be used, based on the items sampled in this situation.

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