member's schedule. Finally, each student will complete an evaluation of the work of other team members, as part of the assessment. You were assigned to your group through a random selection process. Use the appropriate Dropboxes to submit your portion of the group's project, along with the confidential evaluation report. All documents are in Doc Sharing in the pull down menu course project files. Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox , read these See the Syllabus section "Due Dates for Assignments & Exams" for due date information. Background Material The Case Study is presented at the end of seven chapters in your textbook: Chapters 8, 9, 10, 11, 14, 15, and 16. Your group is to complete all seven parts. The worksheets for the group project can be downloaded at.equella.ecollege.com/file/cc8db7ec-ef7a-42ef-92c9- 1946660522bc/1/documents--Worksheets_for_Course_Project.zip">this link . A meeting room has been set up for your group. Please go to the team meeting area. You should use this meeting area to discuss strategy, delegate assignments, discuss class material and its application, and to help the team solve problems. Individual participation is required, and the meeting room helps establish evidence of each member's participation. The meeting room is monitored by the instructor, but the instructor is not the discussion leader. Each group will decide how the workload is to be divided between the members. You may wish to designate one member as a lead person for the overall project, designate a lead person for each part of the project, or use any method that the group decides on. Here is an.equella.ecollege.com/file/cc8db7ec-ef7a-42ef-92c9-1946660522bc/1/documents-- Team_Work.docx">articlethat may assist you in conducting your group project. Part 1—Problem 8-40 (Due Week 3, 40 points) Part 1 requires your group to calculate and analyze ratios. To assist you, our firm uses a standard worksheet for common ratios; you can download a copy.equella.ecollege.com/file/cc8db7ec-ef7a-42ef-92c9- 1946660522bc/1/documents--analytical_workpaper.docx">here . The problem directs you to the publisher's website; however, you may download the required files from the link above. You will also prepare a common-size income statement, using the information from the Excel worksheet named pinnacle financials, found in the zip file that you downloaded. You are asked to estimate potential misstatements, and your group should discuss methods for this estimate and the accounts that are at risk. Part 2—Problem 9-37 (Due Week 4, 40 points) Part 2 presents information that will help your team assess the business and audit risks associated with your audit. This evidence, together with your analysis from Part 1, will be the basis of your written risk assessment. You may wish to use a risk matrix similar to Figure 9-6 as part of your presentation. The risk assessment should be presented as a memo to file. The memo should identify the users of the financial statement and their reliance on the financial statements, the likelihood of the client having financial difficulties, and the integrity of management. Next, your memo will establish the acceptable audit risk as low, medium, or high, with a justification for your selection. The memo should then address the inherent risk and the associated account(s) with each of the 11 situations discussed in the problem. Part 3—Problem 10-43 (Due Week 4, 40 points) .equella.ecollege.com/file/cc8db7ec-ef7a-42ef-92c9-1946660522bc/1/ACCT444_CH_CourseProject.html#top">Back to Top This part of the project requires your team to review the internal control flowchart presented in the case to identify the existing internal controls over the acquisition and payment cycle. You will then identify weaknesses, if any, in those controls and assess the control risks that the weaknesses present. Your team will then complete the control risk matrices workpaper included in the zip file downloaded from the above link. A model of this worksheet is presented on page 309 for a sales cycle audit. Part 4—Problem 11-34 (Due Week 5, 40 points) In this part, you will have an opportunity to participate in brainstorming related to fraud as part of the audit planning stage. The purpose of this part is to identify risks and to address those risks in the audit. You will begin by using the fraud triangle and information from Parts 1 through 3 to identify incentives and pressures, opportunities, and attitudes and rationalizations. Then you will identify risks and accounts that will be affected. You will then look at revenue and identify at least two ways that fraud can happen and how you would find it in the audit.
You will finish up by looking back to Parts 1 and 2 and identifying fraud risks related to all areas covered there. Part 5—Problem 14-34 (Due Week 5, 40 points) This task requires your team to plan a phase of an audit around the internal controls that you identified in Part 3. You will use the worksheet contained in the zip file designated for this problem. For each control, you will complete columns for the transaction-related audit objective, list a test of controls, and a substantive test of transaction. Next, your team will list a substantive test of transaction for each of the audit-related objectives for the acquisition and cash disbursement cycle. These tests may or may not be included in the final program. At this step, we are matching tests to audit objectives, and our final selection of tests will be based on a final risk analysis. Your team will select those tests that will best meet the planned audit risk. Part 6—Problem 15-35 (Due Week 6, 40 points) Here, your team will complete the sampling data sheet included in the zip file. The planned audit variables are judgmental and should be decided upon as a team in your meeting area. For random selection using Excel, the command to select numbers randomly from the population is =RANDBETWEEN(4614, 31612) The command for selecting the random number can be entered directly onto the spreadsheet, or can be selected from the function menu (math and trig) under the insert menu. It may be necessary to add the analysis tool pack to access the RANDBETWEEN function. The final step is to use the data presented in D to complete the actual results section of the acquisition schedule. Note: You will not be completing the cash disbursement section of actual results. Part 7—Problem 16-35 (Due Week 7, 40 points) Your final tasks of the project begin with the performance of analytical procedures in accounts payable. The team will next design tests of details of balances in accounts payable. The problem then presents your team with the results of testing in Sections D, E, and F. You will use this information to complete the worksheet for this problem included in the zip file. You will calculate an estimated error. Again, the team must make a judgement on the amount to include as an estimate of sampling error. To conclude the problem, the team comes to a conclusion on the fairness of the accounts payable balance. Grading Rubrics Criterion Unsatisfactory (less Needs Improvement Meets Requirements than 50% of points as (50–79% of points as (80–100% of points as allocated to the allocated to the allocated to the criterion) criterion) criterion) Analysis is done but the scenario is not drilled down Lacks analysis and Content, analysis, application enough to get a perfect Good analysis, proper application of most principles of principles and calculations understanding. The application of principles, and is not correct. Most 80% of total project points application of few principles correct calculations calculations are not correct is not done properly. Few calculations are not correct Spelling errors throughout Spelling and grammar 10% the paper and most Very few spelling and No spelling mistakes and of total project points sentences are not grammar errors grammar erros grammatically correct There is no apparent attempt to format for readability. It is The answer to each hard to follow or determine requirement could be easily It is a well organized answer Format and appearance 10% the answer. There is no determined but the with clear indication of each of total project points conclusion or indication of presentation is not in an requirement and suitable where to find the answer or organized format and lacks subtitles wherever needed. conclusion for each suitable subtitles. requirement.