Auditing Procedure for Probiotec Limited

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

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AUDITING
Executive Summary
The report shows the auditing procedure that is carried by the auditor upon different entity
report. It deals with a company name Probiotec which an Australian based company. It shows
the different account that can have material misstatement and also show the planning
materiality which is being calculated by the auditor in the initial stage of audit process.
Lastly, it states the risk that has been associated with different account and the procedure
which is carried upon the account and based on which auditor gives its opinion upon the
same.

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AUDITING
Table of Contents
Introduction................................................................................................................................3
Nature of the Company..............................................................................................................3
Audit Program............................................................................................................................4
Materiality in financial statement...............................................................................................5
Planning Materiality...................................................................................................................6
Risk Associated in Above mentioned Accounts........................................................................7
Conclusion................................................................................................................................11
Reference..................................................................................................................................12

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AUDITING
Introduction
An audit is the evaluation of the entity report as whether the entity has followed all
the norms that are laid in accounting standard while preparing their books of accounts (Chen
et al., 2015). This process can be carried by both external and internal ways as if the internal
employee carries the audit process than it termed as internal auditing and if the external
auditor carries the audit than it termed as statutory audit. It has to check the financial report
by carrying different procedure in the entity operation. Each organisation must have proper
internal control system as this system helps them to reduce the risk associated in their
business activities (De Simone, Ege and Stomberg 2014). As if the entity is having lack of
proper internal control in their business activity than it increase risk associated in the
business, auditor has to figure out the risk which is being associated in internal control and on
the evidence gather by the auditor it has to form a proper opinion upon the report of the
entity. The report shows the entity Probiotec Limited and states the amount of risk that is
present in entity business. It also shows the materiality in entity business and how the auditor
able to plan its audit procedure upon the planning materiality. It describes the material
misstatement that is present in a different account of the entity and how the auditor can carry
substantive procedure to know the risk of material misstatement in entity books of accounts.
Nature of the Entity
The report shows the company Probiotec Limited that is an Australian based
Pharmaceuticals organisation which carries its activities in Australia. It has many business
operations as its market, manufacture and distributes its product in the country. The company
was founded in 1997 and has it headquartered in Laverton North, VIC. It has a proper range
of health product and able to carry its business in a very cost-saving manner. Company has
proper research team, and also it has invested a considerable sum upon the advancement of its