my assignment 531621

ACC 590 SPRING 2014 SPECIAL TOPICS IN ACCOUNTING – INTERNAL AUDITING Case 2 Urton Anderson This case is to be complete individually and turned in during class on March 13. The case need not be typed as long as your handwriting is legible. Attached is a brief description of the internal audit function and the risk assessment methodology used by the internal audit function of a State Department of Highway and Public Transportation. G1 through G17 presents their definition of the audit universe. C1 through C9 presents the documentation of their risk assessment procedures. You should review the attached documents and then answer the following questions. 1. How is the audit universe defined in the Department of Highway and Public Transportation model? What constitutes an auditable unit? Do they partition the organization into a single universe or multiple universes? What other approach might they take to defining the audit universe into auditable units? 2. Briefly describe the risk methodology? Do all risk factors have equal weight? What does this imply? 3. Prepare a risk assessment (i.e., calculate the risk score) for your project applying the State Department of Highway and Public Transportation methodology and the Virginia methodology (attached after the Dept. of Transportation’s). If you do not have the information necessary for some of the factors, make you best assessment based on what you do know (do not bother the client for this information unless you will need it for your other work). You can share factual information with others in your group, but each person should make their own assessment on each factor. For the projects etc. treat your project as an auditable unit within the agency or organization (UK, ViaMedia, Bluegrass Airport, etc.). For those of you doing an advisory rather than an assurance project, for this case threat it as if you were going to audit the area. If in doubt ask…