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Audit Planning and Internal Control: Assignment

   

Added on  2021-06-17

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ARAFURA Resources LimitedAudit assurance andpracticeAudit Planning and Internal ControlName of the Author
Audit Planning and Internal Control: Assignment_1

EXECUTIVE SUMMARYWith the changes in economic condition and increased complexity of the financialreporting frameworks, every company needs to audit its financial statements with theauditors. In this report, in order to conduct the audit and assurance, Arafura ResourcesLimited has been taken into consideration. There are several financial tools and auditassurance procedure have been taken which reflects that company has complied with all therules an regulation and established harmonization in domestic and international regulations.
Audit Planning and Internal Control: Assignment_2

Table of ContentsEXECUTIVE SUMMARY...........................................................................................................................1Introduction...........................................................................................................................................3Description of ARAFURA Resources Limited......................................................................................3Understand the nature of the entity and its industry............................................................................3Business Transactions of the company..............................................................................................3Investments and investment activities..............................................................................................3Financing and financing activities......................................................................................................3Financial reporting practices..............................................................................................................4Analytical procedures of the Statement of Financial Position and of Financial Performance over the last three years......................................................................................................................................4Consideration of the account balances are considered “material”.......................................................4Ten different material account balances, five assets and five liabilities................................................6List the relevant financial report assertions and explain why the selected assertions are applicable to each account..........................................................................................................................................7Comprehensive set of audit work steps for each material account balance.........................................8Conclusion.............................................................................................................................................8References.............................................................................................................................................9
Audit Planning and Internal Control: Assignment_3

Introduction The substantive tests are the balances that are used to decrease the threats of the auditrisks. The internal control system helps to determine material consideration of accountbalances. It is considered that Arafira Resources Limited has been taken into consideration toevaluate whether company has been facing high loss in its business. Description of ARAFURA Resources LimitedArafira Resources Limited is the mineral extraction company which has been runningits business in Australia. This business has been planned to implement the rarest of the rareminerals of earth. The main headquartered of company is in Perth, Western Australia. Thiscompany is listed in the Australian Stock exchange (ARAFURA Resources Limited, 2017). Understand the nature of the entity and its industryBusiness Transactions of the company It is evaluated that the auditors of the company are more worried about the over valuestatement and less value in the books of statement. There are several test such as substantivetest, assertive test and audit program have been used to evaluate the business businesstransaction of the company. The test balance is used to evaluate the balance of accountsmaintained in the business transactions. With the business transactions of company is accompanied with the extraction of the rarest ofthe rare minerals present on this earth. This company is the permanent supplier ofNeodymium and Praseodymium from the Noland which is the biggest project of company. The busienss project of Company is situated in the northwest territory of Australia. The mineral tenure project is secured by the three major extraction licenses which are appliedon four mineral leases (ARAFURA Resources Limited, 2017). Investments and investment activitiesIn 2015, company had invested in the mineral production around $110,010. The payments forextraction and evaluation amounted to $
Audit Planning and Internal Control: Assignment_4

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