look at the files attached and Add to your memo from Milestone 2-3 page , document your understanding of the relationship between audit risk, audit evidence, and financial statement assertions as it

I am giving you more clear faction:

The first paragraph you summarize the first to milestone that I added and the second that is

“you document your understanding of the relationship between audit risk, audit evidence, and financial statement assertions as it specifically relates to this company and industry”

this need to be a page max!

In the other part that need to be another 2.5 pages

make sure you cover after looking at the “Final Project Scenario” and touching these areas:

• Talk about evidence and what kind and why it’s important

Supporting claims in financial statements

what type of evidence you will use when come to account receivable?

fixed asset ---no cash!

• Audit universe (document that details all the audit activities to be carried out by the internal audit function)

Talk about entities such as: Intangibles, account payable account receivable fixed asset payroll

Revenue that comes from software and computer

ext.

• and what u do if entities come from outside USA

consolidate to US cup

. out of sea revenue!

this is not cash specific

• we need to talk about analectic procedure, that is key audit technique such as

sampling risk, analectic software helps not being bias ext.

• type of evidence, what is the evidence that is different that the first part

this is related to:

invoices

account reconciliation

documentation

bank reconciliation

AR receivable

Inquiry and observation or audit techniques

Read only access as auditor

Watching inventory count

You can rely on verbal statements, but you needed to have document when it comes to Inquiry.

External confirmation with AC /AP

• Subjective areas:

Estimate and reserve

Management estimate with reserving account receivable methodology you need as auditor

need to audit against that methodology

(if receivable 90 days outstanding its need to be fully reserve, when they write off the receivable)

Good will, intangibles this is areas that Management can have decisions on and by that play around with the books.

Show led expenses and reduced bed debt reserve.

• Documentation

Actual support your issue as auditor

• IT have 4 parts that need to be different

1. Risk of IT such as: Network access, IT GC, backup recovery, change management

2. What is the general risk of control that any organization want to put with IT.?

3. Protecting data such access controls and encryption.

4. vulnerabilities what is that (fishing, cybercrime, virous software, etc.)