Prepare a broad audit plan: Weight Watchers international, Inc What material typ
ID: 2469365 • Letter: P
Question
Prepare a broad audit plan: Weight Watchers international, Inc
What material types of transactions and transaction cycles are involved?
What are the high-risk areas?
What are the low-risk areas?
If management faced tremendous pressure regarding the entity's financial performance, what opportunities might exist for them to engage in fraudulent financial reporting?
To what extent do you believe it will be appropriate to reduce assessed control risk?
How will the audit effort be allocated among geographical areas?
Will any areas of the audit require outside expertise?
Will there be reliance on an internal auditor(s)? If so, why? If not, why not?
What form of auditor's report do you expect will be issued? What does it mean?
Explanation / Answer
Audit plan describes brief of all the aspects of the audit.
Material transactions willbe defined as
To ensure fradulent reporting we have to adhere to all the standards of auditing in order to avoid such frauds.
The first step of audit plan will be maling a proper allocation of existing resouces across all the geographies.
And giving the roles independently.
Outside expertise is required in case ofidentifying the installed capacity of the plant, gratuity valuationand any other risk weighted calculations inoredre to avoid the misrepresentations
Internal Audit reort can definately be used for many purposes and no need to refer in audotreport that hasbeen considered.