Auditing: Analysis of Company Financial Statement and Risk Assessment

Running head: AUDITING
AUDITING
Name of the Student
Name of the University
Author Note

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AUDITING
Executive Summary

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AUDITING
Table of Contents
Introduction................................................................................................................................3
Background and Industry Analysis............................................................................................3
Analysis of Company Financial Statement................................................................................4
Analytical Review of the Company...........................................................................................5
Planning Materiality...................................................................................................................7
Audit Planning and Assertions...................................................................................................8
Conclusion................................................................................................................................12
Reference..................................................................................................................................14

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AUDITING
Introduction
Auditing is the process that helps the auditor to know the materiality involved in
company financial statement. Auditor carries several processes to ascertain the business risk
in the company financial statement (Appelbaum, Kogan and Vasarhelyi 2017). Each
company should have proper internal control which helps them to minimise the risk
associated in company business activities. Auditor has to check the internal control system as
if the system is not working correctly, and then this will increase the risk in company
business. Auditor has to collect many audit evidences which will helps the auditor to form its
opinion upon the company financial report. Investors and other financial user take the
auditor’s report as the base of audit so if there is any material misstatement in company
financial statement than that should be recorded by the auditor in its auditor’s report. The
objective of this report is to show the analysis of company Vintage Ltd which is an energy-
based company. The report would analysis the risk that is faced by the business related to
different auditing norms. The financial ratio helps the auditor to ascertain the risk associated
in the company financial which assists it to carry different audit procedure upon the company
report (Babalola and Abiola 2013). Additionally, it also shows the different company account
which can get affected by material misstatement and the assertion taken by the auditor in
regards to that account.
Background and Industry Analysis
The assignment is based upon the company name Vintage Energy Limited which
carry its business operation in Australia. As per survey made upon the energy market it came
to picture that there is high growth phase in the industry. The company report shows that
there is loss in the business and company is not able to make profit by carrying its business