Altium. Limited Audit. Risk assessment for the new clie

I want a word report [from the view point of auditor] with detailed information and the ppt with just summary of that so that I could give presentation.

Altium Limited Audit
RISK ASSESSMENT FOR THE NEW CLIENT

Auditing standards
 Auditing and Assurance Standards Board in Australia have issued
applicable auditing standards to be followed. Following auditing
standards must be followed in risk assessment in an audit of financial
statements.
 ASA 300.
 ASA 315.
 ASA 330.

Risk assessment
Steps to be followed:
I. Audit planning.
II. Inheritance risk assessment.
III. Detection risk assessment.
IV. Control risk assessment.
V. Financial statements review.
VI. Analytical review (Glover, 2015).

Analytical review procedure
 Analytical review process include conducting ratio analysis on the
financial statements of the company. Ratios will help in identifying
possible areas of material misstatement.
 Profitability ratios.
 Efficiency ratios.
 Liquidity ratios and
 Solvency ratios.

Risk in relation to the nature of
business:
 The associated risk in a business is mainly manifested from the nature
of the business. The auditor shall have a basic idea about the financial
transactions and account balances from the nature of a business of an
organization (Farrar, 2017).
 Overall risk of the audit must be below the limit of risk ceiling, i.e.
Overall risk (Inheritance risk detection risk x control risk) < risk limit.

References
 Farrar, F. (2017). Role and Function of the Public Company Accounting
Oversight Board and Auditing Standard No. 5 an Audit Internal Control
Over Financial Reporting that Integrated with an Audit of Financial
Statements. SSRN Electronic Journal, 2(2), 123-221. doi:
10.2139/ssrn.1564410
 Glover, J. (2015). Discussion—A Model of Auditing Under Bright-Line
Accounting Standards. Journal Of Accounting, Auditing &
Finance, 17(3), 561-564. doi: 10.1177/0148558x0401900412