Auditing: Risks, Materiality, and Audit Procedures

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Auditing

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Executive summary
In this report, all of the aspects in relation to the audit have been considered for the Ingham
limited. In the company there are several risks which are involved and they have been identified.
The audit risk is taken into consideration and the model is applied which showed that company is
having low risk. The material misstatement concept has been taken into account and with that all
of the material accounts have been ascertained. There is the proper calculation of the ratio which
shows that the performance of the company has declined in 2018. The assertions which are
involved have been identified and with that all of the steps which are to be taken in their audit
procedure are also identified. The sampling which will be used is ascertained with the help of the
sampling plan and in that size of sample is also taken into account.

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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Key business risks............................................................................................................................5
Analytical procedure of financial position and performance..........................................................7
Materiality........................................................................................................................................8
Material accounts, assertions, sampling and related audit procedures............................................9
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
Auditing is the main requirement of the business by which all the tasks can be evaluated and the
elimination of the risks is made possible. In this report, various aspects in this respect will be
discussed with context to Ingham limited. The business risks which are involved will be
identified and with that all the factors by which the control and inherent risk are affected will be
identified. The analytical procedure will be carried with the help of which the financial position
of the company will be evaluated. This will be done with the help of ratio analysis and after this
the material accounts will be identified. Various material accounts will be taken into account and
their assertions will be listed together with the reason for the same. The steps which will be taken
in the audit process will be provided and with that sampling plan will also be incorporated for all.