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Sarbanes-Oxley Act Of 2002: Integrated Audit Of Bullseye Company

1274 Words6 Pages

Introduction
According to the Sarbanes-Oxley Act of 2002, the action requires that auditors report on the internal controls and financial statements of a publicly traded company. It will be the purpose of this report to provide a product that explains in detail how the audit of Bullseye company will be conducted. Furthermore, this report will also establish how the effectiveness of the managers of Bullseye will be tested based on how well they sustained internal control over the given period (Pany, 2019).
Objective of the integrated audit The purpose of the audit plan is to provide information on Bullseye and how well they managed and produced their financial statements. More specifically, how the Securities and Exchange Commission (SEC) defines …show more content…

Due to having previous information from past audits on Bullseye as a company, this stage of the audit will be relatively brief and will focus mainly on what has developed over the time period, such as, any changes in the nature of the industry or governing concerns (Pany, 2019) (Weins & Alm, 2017).
Finding controls to test After establishing any new changes that pertain to Bullseye, the audit will then move to a top down approach to testing controls. This is done by starting with looking into the whole picture of the company through financial reports and researching accounts that have the greatest impact on the company’s health. From here, certain financial records can be identified that may demonstrate control weaknesses. One of the initial controls to test is how well Bullseye is managing its other entities, entities being the individual stores. Furthermore, this approach will eventually lead the audit to test these various entities through random designations or if any of the entities again show any control weaknesses. Lastly, this is to prevent any unnecessary audits over accounts or procedures that are less critical to the overall report on the effectiveness of Bullseye’s operations (Pany, …show more content…

Design efficiency is how well the specific control is running and whether it is functioning appropriately. Moreover, the design aspect of the controls are being tested by how well they can identify issues or problems that may lead to misstatements or worse, some form of fraud. This leads into operating efficiency, which is how well these designs actually work and whether or not the personal assigned to run them or regulate them are trained. At this stage, it is important to identify any new personal and their qualifications, more specifically, how well they were trained during the onboarding process and if any motives exist that could potentially lead to information misstatement (Pany,

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