Assessment of Annual Report for Konekt Limited

ASSIGNMENT
BAO3306 AUDITING
REPORT

Semester 2, 2018
1. Executive summary
The assessment directly value the organization on the perspective of audit which is
relatively evaluate the financial statement for identifying the fair and true value that is
presented in its annual report. In addition, adequate audit plan has been evaluated and
form to identifying the relevant evidence, which helps in forming the audit opinion for
the organization. Moreover, audit steps are taken such as collecting the evidence and
analysing the proper application for audit standard which helps in improving the
reliability of the annual report that is presented by the organization. The analysis of
annual report has directly helps in identifying the five material accounts which can be
affected by the material misstatement. Hence, relevant evaluation of the audit
standards is conducted to identify the conditions of material misstatement present in
the annual report of the organization. Moreover, adequate evaluation has been
conducted for identifying the audit risk involved in the five identified balances which
is depicted in the annual report of the organization

2. Introduction
The overall assessment directly evaluates the annual report of Konekt Limited
for identifying all the relevant material misstatement that is currently present in the
annual report of organization. Furthermore the assessment directly value the
organization on the perspective of audit which is relatively evaluate the financial
statement for identifying the fair and true value that is presented in its annual report.
In addition, adequate audit plan has been evaluated and form to identifying the
relevant evidence, which helps in forming the audit opinion for the organization.
Moreover, audit steps are taken such as collecting the evidence and analyzing the
proper application for audit standard which helps in improving the reliability of the
annual report that is presented by the organization. The analysis of annual report has
directly helps in identifying the five material accounts which can be affected by the
material misstatement. Hence, relevant evaluation of the audit standards is conducted
to identify the conditions of material misstatement present in the annual report of the
organization. Moreover, adequate evaluation has been conducted for identifying the
audit risk involved in the five identified balances which is depicted in the annual
report of the organization. The detection of the audit risk relatively help in identifying
the overall problems that is faced by the five identified accounts which need adequate
assessment of audit application.

3. Key information
a) Our understanding of the client
Evaluating the steps taken in key information collection
There are relevant steps that need to be taken into consideration for effectively
identifying the overall audit process that is conducted by auditors in an
organisation. The first step that needs to be taken into consideration is the
planning the activities for the audit process, as it allows the order to identify the
relevant paths in which the overall activities need to be conducted. With the help
of adequate planning approach, auditors are able to smoothly conduct the audit
process and able to collect the required level of audit evidence from the business
that could support the overall preparation of the audit report. More auditors also
need to identify and undertake computerisation of planning material as it
relatively helps in identifying the loopholes in the financial statement and
understand the level of inaccuracy that is presented in the report.
Moreover, the analysis also indicates that adequate Adherence to the auditing
standards needs to be conducted by the auditors for simultaneously applying the
audit procedures in the evidence collected from the organisation. This process
would eventually validate the audit process and identify the relevant material
misstatement that is present in the organisation. However, other steps need to be
taken by the auditors such as conducting and analytical review compliance test of
internal control external confirmation and substance of test for identifying the
dependence on audit programme. Furthermore, the audit also needs to determine
the timing and extent to which the audit procedure needs to be applied, as it helps
in under understanding the level of audit assertions present in the organisation
(Auasb.gov.au 2019).
Analysis of the business conducted by the Client
The main business operations of Konetkt Limited Is directly related to the
services that are provided by the organisation to its client regarding the health and
Risk Management Services. The company adequately provide adequate
information about the health and risk management conditions of a business the
client. The management needs to create an adequate workplace that would be safe
and Secure for the employees and it could be identified that the the management is
currently operating with an objective to build a workplace that has safe
environment.
Analysing the Audit program needed from the client
An adequate audit program needs to be formulated by the auditors during the
initial stage as it eventually helps in identifying the relevant steps and procedures
that need to be taken for effectively ensuring the smooth process of the audit.
Audit process also evaluates the overall annual report of the business for
adequately identifying the relevant guidelines and regulations that has been used
for formulating the financial statement. In accordance with Para 7 of ASA 300
Planning an Audit of the Financial Report, companies are mainly able to improve
the audit process, while minimising the negative impact on the Audit process that
is conducted on the organisation. Auditors adequately need to formulate an
adequate plan with relevant stages and steps for effectively improving the auditing
strategy and detecting the timing, direction and scope of the audit. The 2018
financial report has been conducted for identifying position of the company
development planning material that is currently present within the organisation.