Auditing

Using the Zou Fencing Case, address the following in your paper

Discuss the key items auditors must consider when determining the design effectiveness of internal controls AND  when testing the operating effectiveness of internal controls.

What sort of evidence must an auditor consider when testing the operating effectiveness of internal controls?

In this case for each of the risk identified by the engagement team, determine if the evaluation of design was appropriate (explain why or why not).

Also discuss whether engagement team appropriately evaluated each risk, justify your answer.

Your relevant authoritative guidance MUST come from the PCOAB auditing standards. (Needs to be cited accordingly and MUST state which standard number is being used). Must have at least 2 standard numbers and you need to explain why that standard number was chosen in a cohesive manner. PCAOB Auditing Standards Available at: https://pcaobus.org/Standards/Auditing/Pages/default.aspx

All works cited needs to come from the PCAOB Auditing Standards webpage (link above). Also the Works cited page needs to be properly written. This is an example of how it n MUST look like : Public Company Accounting Oversight Board. (2002). Responsibilities and functions of the independent auditor. In General auditing standards (AS 1001). Retrieved from https://pcaobus.org/Standards/Auditing/Pages/AS1001.aspx (date last accessed 10/14/2020)