Audit Plan for Reliable Printers Ltd

ACC30010 Auditing: S1, 2019 Assignment: Audit Plan for Reliable Printers Ltd

Contents
Introduction............................................................................................................... 2
Inventory and Purchases............................................................................................... 2
Revenues and receivables.............................................................................................. 2
Revenue from E-book.................................................................................................. 3
Cash receipts............................................................................................................. 4
Fixed assets............................................................................................................... 4
Finance.................................................................................................................... 5
New IT system........................................................................................................... 5
Appointment of CEO and internal audit team......................................................................6
Conclusion................................................................................................................ 6
References................................................................................................................ 7

Introduction
As the senior auditor in the Rogers & Brown, we have advanced to conduct the
inspection of Reliable Printers for year-ended on 30 June 2018. RPL undertakes to print
magazines, books, advertisement materials, educational and the advertising industries on the
basis of demand for the printing. On demand, the company generally print exact quantities,
which are well-ordered by the retail channels in spite any early booking in relation with the
number of books really required. In addition, the usual printing time for RPL is the two
corporates days for the small orders and for large orders, it takes five to ten days. Apart from
this, RPL expanded its earnings by publishing the available title`s which are accessible as the
identifiable e-books which could be taken straightforwardly by the person who reads from the
website of RPL (Hufschmid, & Collett, 2017).
Audit team staffing
In order to conduct the audit of Reliable Print limited, total 5 audit members will
indulged in assessing the financial books of account of Reliable printing Company. However,
2 senior auditors and 3 assistant auditors would be indulged in audit plan. The audit team will
assess the invoices, check books and business financial accounts books of Reliable Printing
Company to assess the true and fair view of the recorded assets and liabilities in the books of
account.
Nature of audit procedure
It is analysed that audit planning process requires audit commences, in which assessor
is required to prepare a plan of audit. ASA 300, planning an audit of financial report of
Reliable Printing Company is need the auditor to build out an audit plan that entails the
several strategies that will be required in obtaining evidences and facts of recorded items in
the books of account. However, following items would be assessed in the audit and assurance
plan developed by Auditors which are given as below.

Inventory and Purchases
The organization buys 50 percent of the inventory of paper, binding materials, and the
ink from the Australian sources and the remaining 50 percent from Asia. It is seen that raw
materials of the company have been valued on the average cost and its allowance for the
inventory obsolesce that have existed during the preceding year that they undertake to
recover the estimated decline in the values which has occurred during the storage hazards.
WIP is immaterial because of immaterial quick turn time of the printing job work (Brealey,
Myers, Allen, & Mohanty, 2012). Any WIP is accessed on the cost of raw material and the
labour and also the share of overhead cost that is based on normal capacity. At the year-end,
the warehouses are closed on 28 and 29 June because sales are invoiced in the system by
closing the corporate on 27 June (Chan, Chiu, & Vasarhelyi, 2018).
Revenues and receivables
Every time an editor wishes to increase the book to the recently created digital library
of RPL, (it is a server store where the published books are kept in digital format and are ready
to print). These digital books are mailed into PDF files. This digital library backed during the
time of closing of the business each day with the backup kept on the sites. As soon as the
order confirmed by the editor, accounting information retrieves credit record information of
the publisher where it records credit and it can stop any of the orders from the publisher,
which have credit issues (Christensen, Glover, & Wood, 2012). In the order, if there is no
credit issue, it will be executed by the employee in relation to the storeroom were loading the
books onto the pallets for the shipping. The clerk authorize the accuracy, prices of the bill,
and further marks the invoices as proof of their cheque. Rebecca who is the senior clerk
accountant accounts transactions in both the subsidiary accounts receivable ledger and the
ledger is shipped to the publication houses (Brealey, Myers, Allen, & Mohanty, 2012).