Simons Inc. ASSIGNMENT MATERIALS

Your paper should be at least seven pages of 12-point Times New Roman font with 1-inch margins, double-spaced.

Make sure you reference the work you use as you type up your papers. If you are writing this assignment most effectively, your references will be embedded in the paragraph itself (see example). “Paragraphs XX and XX of XXXX Auditing Standard XXX provide that an auditor may test controls in a financial statement audit in order to reduce the level of substantive procedures.”. You may include a Bibliography at the end of your document, but this is unnecessary if you follow the above directions.

Also, make sure you have a brief introduction and a brief conclusion to your paper (the introduction and conclusion should be no more than a paragraph for each.)

Objectives of the assignment

This assignment will give you an opportunity to (1) obtain an understanding of factors to consider when evaluating the design of a control, including identifying criteria that may be considered when evaluating the design of controls in order to determine if they operate at a level of precision that sufficiently addresses the assessed risk of material misstatement, (2) identify the factors to consider when assessing the risk associated with the control, (3) formulate a definition of professional skepticism, (4) plan appropriate procedures to test the operating effectiveness of controls, including roll-forward procedures considering the risk associated with the control, and (5) obtain an understanding of factors to consider when evaluating the severity of a deficiency in a control which addresses RMM, and (6) understand the process of evaluating identified control deficiencies, including identifying indicators to be considered when determining whether a deficiency is a material weakness.

You will use the Applicable Professional Pronouncements and other relevant guidance to help you answer the questions.