Audit Analysis of Adslot Limited: Analyzing Business Operations, Investment and Financing Activities, and Financial Reporting Practices

ADSLOT LIMITED
Audit and Assurance
Audit analysis
Name of the Author
Student Id-

Table of Contents
Introduction................................................................................................................................1
Adslot Limited...........................................................................................................................1
a) Business Operations...............................................................................................................1
b) Investment and Investment activities.....................................................................................1
c) Financing and Financing activities........................................................................................2
d) Financial Reporting Practices................................................................................................2
Analytical Procedures................................................................................................................2
Material Account balances.........................................................................................................4
Material account balances, relevant key assertions, reasons of relevancy and the audit steps to
obtain sufficient appropriate audit evidence..............................................................................4

Introduction
There are several business and financial complexity which may result to increased
inherent risk in preparation of the financial statement of company. It is evaluated that if
proper audit and assurance program is implemented then it will increase the overall outcomes
and efficiency of the business at large. The financial Report in current study targets the audit
practices and procedures that enable an auditor to obtain sufficient and appropriate audit
evidence. Main focus is on the key assertions placed by management regarding account
balances, being existence, completeness, rights & obligations and valuation. The risk that
might exist even when the management have asserted about the account balances is stated
with the substantive procedures to reduce the chance of risks being ignored. Various
analytical procedures have been briefed regarding the details of company. Client chosen for
the study is ADSLOT LIMITED, an ASX listed company. The initial part of report deals
with the business of the client and its investing and financing activities. Later on, the above
things are discussed in the report (Morgenstern, et al. 2017).
Adslot Limited
a) Business Operations
Being a listed company in Australian security exchange, Adslot has its operations set in New
York, London, Shanghai, Munich, Sydney, Melbourne and Auckland. Company aims at
revolutionising the next generation media. The main business operations are termed, Adslot
media, Symphony and premium publishers. To focus on transparency, effective cost managed
media solutions, strong control over media and a direct approach centred media, adslot media
division is there. Symphony on the other hand aims at utilising the existing data to create
more value and providing customised made solutions to overall agency requirements. In
order to eliminate middlemen and provide automation of input output processes, premium
publishers have come into picture. Overall efficiency is improved through this ((Arens, et al,
2016).
b) Investment and Investment activities
The company’s investment in property, plant and equipment is comprised by computer
equipment, plant & equipment and leasehold improvements. All these property, plant and

equipment are depreciated on straight line basis. The investment in same has increased by an
extent of around 200% in financial year 2016-17. The intangible property comprises of
domain name, intellectual property, software, goodwill and research & development
expenditure. The table below shows the statistical data regarding company’s investment
activities (Arens, et al, 2016). This investment of the company in different units shows that
company has objective to expand its business on international level.
AUD 2016-17 2015-16 2014-15
Investments in property, plant, and equipment (177,950) (58,140) (40,786)
Proceeds from sale of fixed assets 2,750
Purchases of intangibles (4,524,194) (2,911,523
)
(3,638,707)
Receipt of R&D tax incentive relating to capitalised
assets
1,583,175 1,716,792 1,741,136
Cash outflow from investing activities (3,116,219) (1,252,871
)
(1,938,357)
After analysing the investment strategies of the company, it could be inferred that
company has seen high amount of cash outflow. If Company do not curb this amount of
investment then it will negatively impact the business liquidity in determined approach. This
high level of cash outflow from the business might impact the sustainability and liquidity
position of company in long run (Morgenstern, et al. 2017).