Auditing The Significance of Problem-Solving and Information Literacy

In this article we will discuss about auditing and below are the summaries point:- My team was cooperative and productive, and we divided the workload effectively to accomplish the assigned task. Each member contributed to taking responsibility and provided feedback to ensure harmony within the team. The leader's strengths were building strong relationships, coaching, and being efficient in executing work. The team reflected on their performance and collaborated to complete the project. The primary weakness was failing to set clear expectations regarding the appropriate base to use in calculating materiality. The team formulated a strategy to identify, define, and solve problems while testing internal control on accounts receivable. The leader's performance was centered on discussing the implication of timing, mature, and extent of substantive testing of accounts receivable. The team had a common sense of purpose and evaluated their performance periodically. Communication was clear, and members were allowed to express dissent freely to reach a consensus. The team showed ethical and professional practices such as integrity, objectivity, confidentiality, and competency. The leader encouraged these practices and provided guidance to ensure the team's compliance with professional conduct.

Running head: AUDITING 1
Auditing
Name
Institution

AUDITING 2
Week 5 Reflective Journal
My team members were characterized with being cooperative and productive based on
the roles that we were provided. This is evidenced by the fact that my team divided work load
amongst ourselves. For instance, each member in my team was supposed to find information
with respect to planning materiality by finding more information through the YouTube links that
were given. This example shows how cooperative my team was in accomplishing the task that
was assigned to us. Nonetheless, productivity is attested by the fact that one member of the team
suggested an alternative solution because the links were not working appropriately. Besides, my
team work skills on accountability contributed to building a rapport with others to develop a
coherent team. This is supported by division of tasks where three roles were assigned to the team
members. Among the roles that were assigned include planning materiality calculation on
YouTube, researching on materiality standard audit and comparing with information from
textbooks. Communication played a critical role in enhancing collaborative approach.
Each member of my team played a significant role in taking responsibility for ensuring
that group goals are achieved. This was accomplished by one member who contributed that trial
balance would be used as an appropriate base since 10 percent is considered as an acceptable
high level risk of calculating materiality. Another member ensured that we had information from
YouTube. Based on the findings from watching YouTube, profit oriented items are considered to
be ideal in calculating materiality. The third member contributed information relating to
professional judgment with regards on how it contributed to calculating materiality. Through the
contribution of each member of my team, all played a key role in taking responsibilities which
contributed to the accomplishing the objectives of the assigned task. In essence, giving and
receiving feedback is a critical team skill that is evidenced through giving clear direction and

AUDITING 3
receiving required feedback in order to complete the task. This skill contributed in ensuring that
my team worked in harmony.
As a leader working with a team, there are various strength about the leaders and
members that define the outcome of the team’s performance. As a leader of the team, I had the
ability to build strong relationship. I managed to achieve this by establishing trust and motivating
the other members to act and complete on the assigned task. I provided positive feedback and
reward for good performance while at the same time coach members in areas where they struggle
such as determining the appropriate base to use for the calculation of materiality. In addition, I
was also efficient in executing work since my team managed to complete the tasks assigned.
Another area of strength is that the members took time to reflect on the assigned tasks and
collaborated to ensure that the overall project was completed as expected. Considering
weaknesses, the primary weakness that was experienced between the leader and other team
members is failing to set clear expectation where we relied on the most appropriate base rather
than finding the correct base to use in calculating materiality.
Week 6 Reflective Journal
This reflective journal is based on week 6 which was concerned with testing of internal
control on accounts receivable. In this regard, the reflective focuses on performance with a keen
look on problem solving and information literacy skills. Therefore, in order to test internal
control on accounts receivables, my team sought out to formulate a strategy to identify define
and solve problems. The strategy that we used involved problem identification, developing
alternative solution, selecting the optimal solution and implementing the optimal solution. First,
we decided to familiarize ourselves with the requirements of the question. This led to defining
and explaining the objectives of internal control. The findings determined that there are various

AUDITING 4
objectives that include Real which is concerned with duplicate transactions that are not included
in the books. Besides, Recorded objective deals with controls that prevent omission of
transaction while Valued objective involves controls to ensure correct amounts are assigned to
correct transaction. Identifying these objectives contributed to helping us understand how to test
internal control on accounts receivable to offer conclusive solutions.
My performance with respect to this task was centered on discussing the implication of
mature, timing and extent of substantive testing of accounts receivables. Here, I was expected to
identify, define and solve the problem. I approached this aspect by defining the context of what
would be the outcome if the controls were shown to be operating satisfactory and unsatisfactory.
In this regard, I researched for the definition of variables in this problem in order to be able to
put the solutions in context. Once I had all the information, I embarked on answering the
questions that were assigned by Cloud 9 audit. This process is both descriptive and prescriptive
in nature because it views the solution from all aspects in order to provide generalized solution.
From this strategy, I was able to determine that implication of timing, mature and extent of
substantive testing would be less testing on internal control and more focused on transaction
level as a means to test both preventative and detective errors when operating satisfactory.
My performance as a team leader along with that of my member with respect to
professional standard was characterized by group members having a common sense of purpose
to achieve expected goals. My team was concerned with the task as well as the process and
operating procedures by periodically evaluating the performance. My team members were able
to treat each other as a resource in order to collaborate and accomplish the task assigned.
Communication during the project was clear and direct because it is demanded by professional
conduct among auditors. Besides, the members were allowed to express dissent freely in order to

AUDITING 5
compromise and bargain to reach a consensus. My team concentrated to problem solving abilities
as opposed to competitive endeavors and interpersonal issues. As a result, our collective
performance was enhanced. Mistakes in problem solving were considered as sources of learning
rather than reason for punishment. This encouraged our team to be creative and try to find
relevant solutions for the assigned tasks that were before us. Furthermore, the team had clear
expectation and standards of behavior among group members.
Week 7 Reflective Journal
The ethical and professional practices that evident in my team included integrity,
objectivity, confidentiality and competency. My team members were able to perform their tasks
with honesty, diligence and responsibility. This was realized by the fact that all members took
the responsibility of researching for their items, diligently conducted the research and provided
the correct information that were contained in the researched materials. Besides, the team was
objective in the manner that they conducted their activities. All members concentrated on
problem solving for the task assigned as opposed to using the time allocated to partake on other
activities. In this case, my team was able to disclose all information they had researched as facts
rather than providing claims that could not be substantiated. In the spirit of confidentiality, the
material information related to Cloud 9 was protected and was not used for other purpose other
than the intended. My team and I expressed competency in knowledge, skills and experience in
coming up with the correct information to solve the problems that were before us.
While providing feedback for assigned tasks among each member, the members
discussed and agreed on a rule of thumb for the most appropriate base for calculating materiality.
Besides, another member determined that profit oriented items such as profit before tax is used
as an ideal base for calculating materiality. These claims are made out of integrity that auditors

AUDITING 6
are supposed to conduct themselves while performing their duties. Therefore, the value of
integrity is considered as a basic element in auditing profession. Integrity often demands that
auditors be honest and candid with financial information. For this reason, it is evident that my
team conducted itself with honesty by reporting the correct account of information that they were
researching. Also, integrity required my team not to use confidential information for our personal
gain. Furthermore, as auditors we were required to consider the errors in calculating materiality
in order to avoid deceiving and manipulating financial information. The code of ethics for
auditors play a crucial role in assisting auditors like my team to perform their duties.
Personal value system comprises a set of principles that guide human behavior. The
personal system offers the structure and purpose by helping team members to determine what is
meaningful and important. Lack of personal values exposes individuals to make impulse choices.
Personal value system is significant because it influences personal work and behavior,
interactions, decision making and direction that one should take. For this reason, my personal
value system is accountability. In this regard, I was able to account for the work that my team did
through associating each tasks with respective team member. This is significant because liability
can be reflected to a specific member. For instance, I am accountable to hold the member who
was responsible for researching YouTube liable for any misconduct based on professional ethics
that govern accountants.