ACT450 Colorado State University Risk Based Auditing Paper This professor is very tough in grading, and I need this by this Saturday. Other Requirements f

ACT450 Colorado State University Risk Based Auditing Paper This professor is very tough in grading, and I need this by this Saturday.

Other Requirements from the frist 2 weeks of feedback:

APA 7th Edition

Error free grammar/mechanical paper

AS # (Auditing Standard # from PCAOB site must be correctly sited and title noted when applicable)

OPTION #2: AUDITING STANDARDS & MATERIALITY

The table provided to you by your instructor contains calculations of several key ratios for a fictitious company, Texanna Pharmaceutical Company, a maker of proprietary and prescription drugs.

Texanna is a small- to medium-sized publicly held pharmaceutical company. Approximately 80% of its sales has been in prescription drugs; the remaining 20% is in medical supplies over the counter.

Auditor’s calculations are used to ascertain potential risks in anticipation of an audit. Some of this data may indicate the need for other industry- or company-specific data. Many of the company’s drugs are patented and Bamatosis’ (a best seller) patent will expire in 2 years. Over the last five years, this drug alone has accounted for 20% of the company’s sales. The auditor’s evaluation is that the company’s trends this year should be similar to the trend over the last few years and won’t deviate very far from the industry norms.

Your instructor will give you the financial information to use in this case.

What financial reporting risk conclusions can you draw from this information? Pinpoint high risk of material misstatement in account balances. How will you use this risk analysis in planning the audit? Identify 4 financial reporting risks that you will address during the audit and discuss how you will address those risks.
What other critical background information will you want to obtain when planning the audit? When performing the audit, what information do you need? Where would you get this information from?
What significant things did the company immediately do in the preceding year? Explain.
Examine trends in the data using Excel and highlight these trends in the ratios over the three prior years. Discuss what you noticed in the trends.

Perform your analysis in Excel and your written portions in Microsoft Word. Please follow APA format, according to CSU-Global Guide to Writing and APA (Links to an external site.). Include a title page and reference page. Use two (2) outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.

Rubric

ACT450 Mod 3 CT

ACT450 Mod 3 CT

Criteria Ratings Pts

This criterion is linked to a Learning OutcomeRequirements

20.0 to >16.0 pts

Meets Expectation

Includes all of the required components, as specified in the assignment.

16.0 to >12.0 pts

Approaches Expectation

Includes most of the required components, as specified in the assignment.

12.0 to >8.0 pts

Below Expectation

Includes some of the required components, as specified in the assignment.

8.0 to >0 pts

Limited Evidence

Includes few of the required components, as specified in the assignment.

20.0 pts

This criterion is linked to a Learning OutcomeContent

20.0 to >16.0 pts

Meets Expectation

Demonstrates strong or adequate knowledge of audit or analytical procedures; correctly represents knowledge from the readings and sources.

16.0 to >12.0 pts

Approaches Expectation

Some significant but not major errors or omissions in demonstration of knowledge.

12.0 to >8.0 pts

Below Expectation

Major errors or omissions in demonstration of knowledge.

8.0 to >0 pts

Limited Evidence

Fails to demonstrate knowledge of the materials.

20.0 pts

This criterion is linked to a Learning OutcomeAnalysis

5.0 to >4.0 pts

Meets Expectation

Provides strong or adequate thought, insight and analysis of concepts and applications.

4.0 to >3.0 pts

Approaches Expectation

Some significant but not major errors or omissions in thought, insight and analysis.

3.0 to >2.0 pts

Below Expectation

Major errors or omissions in thought, insight and analysis.

2.0 to >0 pts

Limited Evidence

Fails to demonstrate thought, insight and analysis.

5.0 pts

This criterion is linked to a Learning OutcomeSources / Examples

5.0 to >4.0 pts

Meets Expectation

Sources or examples meet required criteria and are well chosen to provide substance and perspectives on the issue under examination.

4.0 to >3.0 pts

Approaches Expectation

Sources or examples meet required criteria but are less‐than adequately chosen to provide substance and perspectives on the issue under examination.

3.0 to >2.0 pts

Below Expectation

Sources or examples meet required criteria and are poorly chosen to provide substance and perspectives on the issue under examination.

2.0 to >0 pts

Limited Evidence

Source or example selection and integration of knowledge from the course is clearly deficient.

5.0 pts

This criterion is linked to a Learning OutcomeDemonstrates college-level proficiency in organization, grammar and style.

5.0 to >4.0 pts

Meets Expectation

Project is clearly organized, well written, and in proper format as outlined in the assignment. Strong sentence and paragraph structure; few errors in grammar and spelling.

4.0 to >3.0 pts

Approaches Expectation

Project is fairly well organized and written, and is in proper format as outlined in the assignment. Reasonably good sentence and paragraph structure; significant number of errors in grammar and spelling.

3.0 to >2.0 pts

Below Expectation

Project is poorly organized; does not follow proper paper format. Inconsistent to inadequate sentence and paragraph development; numerous errors in grammar and spelling.

2.0 to >0 pts

Limited Evidence

Project is not organized or well written, and is not in proper paper format. Poor quality work; unacceptable in terms of grammar and spelling.

5.0 pts

This criterion is linked to a Learning OutcomeDemonstrates proper use of APA style

5.0 to >4.0 pts

Meets Expectation

Project contains proper APA formatting, according to the CSU-Global Guide to Writing and APA, with no more than one significant error.

4.0 to >3.0 pts

Approaches Expectation

Few errors in APA formatting, according to the CSU-Global Guide to Writing and APA, with no more than two to three significant errors.

3.0 to >2.0 pts

Below Expectation

Significant errors in APA formatting, according to the CSU-Global Guide to Writing and APA, with four to five significant errors.

2.0 to >0 pts

Limited Evidence

Numerous errors in APA formatting, according to the CSU-Global Guide to Writing and APA, with more than five significant errors.

5.0 pts

Total Points: 60.0 Texanna Pharmaceutical Ratio Analysis
Current Ratio
Quick Ratio
Times Interest Earned
Days Sales in Receivables
Inventory Turnover
Days Sales in Inventory
Research and Development as % of sales
Cost of goods sold as % of sales
Debt/Equity Ratio
Earnings per share
Sales/tangible assets
Sales/total assets
Sales growth over past year
Current Year
1.86
0.86
1.31
110.00
2.40
152.00
1.32
38.30
4.90
1.15
0.69
0.32
3%
One Year Prior
1.90
0.94
1.44
97.00
2.21
165.00
1.41
40.10
4.85
2.55
0.65
0.34
15%
ical Ratio Analysis
Two Years Prior
Three Years Prior
2.30
2.51
1.33
1.75
5.90
6.31
101.00
74.00
3.96
5.31
92.00
69.00
1.95
2.02
41.40
43.50
1.24
1.15
4.33
4.20
0.87
0.88
0.90
0.88
2%
4%
Current Industry
2.13
1.38
4.49
70.00
4.33
84.00
4.24
44.40
1.26
n/a
0.98
0.79
6%
11TH EDITION
AUDITING
A RISK-BASED APPROACH
JOHNSTONE GRAMLING RITTENBERG
CENGAGE
Australia – Brazil – Mexico. Singapore. United Kingdom United States
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-310

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