13 Jan You will begin

Part 4—Problem 11-34 (Due Week 5, 20 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, 20 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.