Audit Tesla’s warranty account, accounting homework help
Based on the examination of Tesla’s financial statements and notes you will perform a risk assessment and identify a significant (qualitative and quantitative characteristics)account (e.g. Goodwill/Allowances/Valuation for DTA/etc.). For the selected account determine which assertions are relevant (completeness, existence, accuracy, valuation, obligations and rights, presentation) and provide the following:
Controls tested for test of design and conclusion (include sample sizes any how they were determined)
Controls tested for operating effectiveness and conclusion (include sample sizes any how they were determined)
Substantive tests performed and conclusion (include sample sizes any how they were determined)
Final audit opinion over controls
Final audit opinion over financial statements
Note1: Only one account needs to be selected but if there is another account that goes hand-in-hand you should be consistent (e.g. Goodwill + Impairment)
Note 2: If the substantive tests showed any errors (you can be creative and give them deficiencies on controls or a qualified opinion as long as you detail why).
We choose to audit Tesla’s warranty account. Here is the outline we made:
Business Risk Assessment
Auditor’s documented understanding of the business (industry, regulatory, nature, accounting choices, tone at the top, etc.) – Tesla has exponential growth in sales and production
Risk of Material Misstatement
Tests of controls: a. Tests of design; b. Tests of operating effectiveness
Final Auditor’s Opinion: a. Opinion on
financial statement; b. Opinion on internal
controls; c. Key
recommendations for client
I am doing Section 2 (Tests of controls: a. Tests of design; b. Tests of operating effectiveness) and Key recommendations for client.
Any citation style (APA, MLA, Chicago/Turabian, Harvard)
Delivering a high-quality product at a reasonable price is not enough anymore.
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You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.