Part 1-In preparation for the Harrison Enterprises' year-end audit, your manager has asked you to document about auditing principles and the code of conduct to share with the rest of the internal auditors. You know that the Institute of Internal Auditors (IIA) provides professional guidance and a code of ethics for internal auditors, but you need to revisit that information to create the memo.

Prepare a 2-page document discussing the following:
auditing principles
code of conduct

Part 2-apply a risk assessment technique to decision making by using the following example:

Assume you are going to use nonstatistical sampling to evaluate the results of accounts receivable confirmation for the Harrison audit. Results from previous audits have been excellent. Due to the high quality of the controls at Harrison, you have decided to use an acceptable risk of incorrect acceptance of 10%. There are 3,000 accounts receivable with a gross value of $9,601,883. You have decided that an overstatement or understatement of more than $150,000 would be considered material.
Calculate the required sample size using the following formula:
Sample size = (book value of population / tolerable misstatement) x assurance facto
Assurance factor:
5% ARIA = 3
10% ARIA = 2
20% ARIA = 1
Assume that instead of good results from previous audits, Harrison had poor results and the controls in place were questionable.
Discuss the following:
How this would affect your sample size.
How you would use this information in your sample size determination.
How you would select the accounts for testing using systematic selection.