AUDIT AND ASSURANCE SERVICES

Running head: AUDIT AND ASSURANCE SERVICES
Auditing and Assurance Services
Name of the Student:
Name of the University:
Authors Note:

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Contents
Introduction:....................................................................................................................................3
Overview Memo:.............................................................................................................................3
Phase I -Planting and designing phase:...........................................................................................4
Acceptance of client and initial audit planning:..........................................................................4
Understanding the business of the client and the industry in which the client work:.................4
Performing preliminary analytical procedures necessary for the audit:......................................4
Setting the preliminary level of materiality and performing materiality tests for the audit:.......5
Identification of significant risks owing to the possibility of fraud and error:............................7
Assessment of inherent risk:........................................................................................................7
Verification of internal controls and assessing their effectiveness and efficiency:.....................8
Finalization of audit strategy and plan to conduct and efficient and effective audit of financial
statements:...................................................................................................................................8
Phase II –Substantive tests and test of controls:..............................................................................8
Necessary steps to reduce the assessed level of control risk:......................................................8
Performance of substantive test:..................................................................................................9
Assessment of the possibility of misstatements in financial statements:....................................9
Phase III –Substantive analytical procedures and tests of details of balances:.............................10
Substantive analytical procedures:............................................................................................10
Test of key items:.......................................................................................................................11

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Conducting additional tests of details of balances:....................................................................12
Phase IV –Complete the audit and issue an audit report:..............................................................12
Additional tests necessary for the presentation and disclosure:................................................12
Accumulation of final evidence:................................................................................................12
Evaluation of results:.................................................................................................................12
Issuance of audit report:.............................................................................................................12
Communication with audit committee and management:.........................................................13
Conclusion:....................................................................................................................................13
References:....................................................................................................................................14

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Introduction:
Columbia Sportswear Company was founded by Paul Lamfrom in the year 1938 as a sole
proprietorship company. However, it is only as recently as 1998 when the company decided to
go public with its shares by issuing initial public offer (IPO). In the year 2018, the company
completed its 80 years in business. As per the annual report 2018, the company has achieved
ground breaking results and exceeded its own expectations as its share price which was $18 at
the time of IPO has risen to $309 per share as in February, 2019. In fact considering dividend
reinvestment the shareholders who invested in the shares of the company at the time of its IPO
there has been a 2,000 percent on that investment.
Overview Memo:
The objective of this document is to prepare an audit plan for the company to assess whether the
financial statements of the company reflects the true and fair position of the company as on the
date of the financial statements.
An audit is about auditing the financial statements of an organization with the objective of
providing an appropriate opinion on the financial statements of the organization. The audit report
states whether the financial statements of an organization have been prepared in accordance with
the accounting standards applicable for such organization to reflect the true and fair picture of
the organization’s performance and position as on the date of the financial statements. The 2018
annual report of Columbia Sportswear Company contains the financial statements of the
company for the year shall be audited in accordance with the following audit plan to allow the
auditors to give appropriate opinion on the financial statements of the company. Collection of