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Pages:
4 pages/≈1100 words
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Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
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Topic:

Audit Planning and Control: Goldman Sachs

Essay Instructions:

It is common industry knowledge that an audit plan provides the specific guidelines auditors must follow when conducting an external audit.
External public accounting firms conduct external audits to ensure outside stakeholders that the company’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS).
Use the Internet to select a public company that appeals to you. You may also use the company dossier in the Nexis Uni database to find company information.
Imagine that you are a senior partner in a public accounting firm hired to complete an audit for the chosen public company.
Instructions
Write a paper in which you:
- Outline the critical steps inherent in planning an audit and designing an effective audit program. Based on the type of company selected, provide specific details of the actions that the company should undertake during the planning and designing of the audit program.
- Examine at least two performance ratios that you would use in order to determine which analytical tests to perform. Identify the accounts that you would test, and select at least three analytical procedures that you would use in your audit.
- Analyze the balance sheet and income statement of the company that you have selected, and outline your method for evidence collection which should include, but not be limited to, the type of evidence to collect and the manner in which you would determine the sufficiency of the evidence.
- Discuss the audit risk model and ascertain which sampling or non-sampling techniques you would use in order to establish your preliminary judgment about materiality. Justify your response.
- Assuming that the end result is an unqualified audit report, outline the primary responsibilities of the audit firm after it issues the report in question.

Essay Sample Content Preview:

Audit Planning and Control: Goldman Sachs
Student’s Name
Institutional Affiliation
Course Name and Number
Lecturer’s Name
Assignment Due Date
Audit Planning and Control: Goldman Sachs
Introduction
Goldman Sachs Group, Inc. is a publicly owned global financial intuition that offers a wide range of financial services, including investment banking, securities, investment management, and even consumer banking (Goldman Sachs, n.d.). The diverse pool of clients for Goldman Sachs comprises corporations, financial institutions, governments, and individuals (Goldman Sachs, n.d.). Headquartered in New York, The giant American financial institution was founded in 1869 and has grown tremendously over the years to revenues of over $53 million and employees exceeding 40,000 globally as of March 2021 (Fortune, 2021). With a multitude of financial records that are of great significance to the external stakeholders, Goldman Sachs certainly would need the expertise of a certified public accountant to certify the financial statements and ensure that they conform with the Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). Being an American corporation, Goldman Sachs is by default subject to the GAAP principles, and the IFRS are also applicable for its global subsidiaries.
External Audit Planning
The primary goal of an external audit is to examine the company’s financial records for a specified period to ascertain or deny the legitimacy of the company’s state of affairs and operations (Humentum, 2018). Before the external auditing process commences, the organization should adequately plan for the auditing process. According to Braiotta Jr et al. (2015) and as per the International Standards of Auditing (ISA), audit planning consists of three distinct steps to be undertaken by the external auditor under the observation of the organization’s audit committee. The first step is to critically examine the organization’s flow of information and controls to get the big picture of the company’s business model. This is achieved by obtaining the company’s essential materials for the audit process and the relevant accounts and transaction processes. The second step is to assess the financial risks that the material obtained might bear. The level of risks as per the second step of audit planning is critical in the third step, where the auditor embarks on designing an audit procedure informed by the level of threats from the second step (Braiotta Jr et al., 2015).
Goldman Sachs is a global financial institution subject to bank audits either internally or externally. The auditing committee responsible for the facilitation and oversight of the external auditors should assess their compliance with various requirements that a bank audit is likely to cover. These areas include security and risk management, liquidity and monetary flows, financial transaction and regulations, policy compliance. Other essential actions to undertake may consist of the assertions of the financial statements and performing a trial run for judging materiality to rectify any errors that might render the financial statements inaccurate.
Performance Ratios
Performa...
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