Assignment On Advance Auditing

Added on - 17 Feb 2020

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ADVANCE AUDITINGAND ASSURANCE
Table of ContentsQuestion 1: Identification of risk factors....................................................................................1Question 2: Evaluation of sustainability of Computer Assisted Auditing techniques................2REFERENCES................................................................................................................................4
Question 1: Identification of risk factorsAuditing means official verification and examinations of the accounts and record that hasbeen kept by the entity. An inspection is done by the auditor in order to evaluate theappropriateness, safety and efficiency of the financial statement and its functioning. It ensuresthat fair representations of the accounts have been made. It helps to save the interest ofemployees (Arens, Elder and Mark, 2012). It also makes sure that all the guidelines issued byInternational Financial Reporting Standards (IFRS) have been followed by the organization. Anauditor also have to follow standards of Generally Accepted Auditing Standards (GAAS) so thatthe work can effectively be performed as per issued instructions.There are various risk factors involved while performing any function in the organization.As per the case of Squeeze limited, who is involved in manufacturing of quality beddingperforms task in the entity.Error on staff code:A master file of SL's IT system includes tax schedules, informationof payrolls, employee details etc. The alternation are done through an email to The ChiefInformation officer, Robin Beard. If any change is wrongly done in other staff member'scode then the whole detail sheet will get wrong (Bell and Griffin, 2012). Error on staffcode or digit to be entered can also lead to various risks to the entity such as, increasedcost and misinterpretation ODF the accounting records as well.Mismatch in financial statement:Robin make changes in the software as well as alsooperates IT system if IT operator is on leave. It can be a hassle for him as managing boththe duties is difficult to be worked upon. Any discrepancy in reporting the data mayaffect the records and further create mismatch in financial statements as well(Christensen, Glover and Wood, 2012).Dual existence of same account: The company follows a policy where it promotes andtransfer its staff to different divisions and company within the group. New access is givento the employees however, the entitlement of old access is retained. It helps to stillcontinue their work from the previous role. It can create dual existence of the sameaccount leading to overlapping of data. It can act as a fraud for the company where accessto two accounts have been provided (Cohen and Simnett, 2014). If the account is notclosed on time it can attract deception in the roles. It is more inclined towards thefraudulent activity.1
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