Assignment on Auditing & Assurance
Added on 2020-05-16
10 Pages1813 Words55 Views
Running head: AUDITING AND ASSURANCEAuditing and AssuranceName of the Student:Name of the University:Author’s Note:Course ID:
1AUDITING AND ASSURANCETable of ContentsAnswer to Question 1:.....................................................................................................................2Answer to Question 2:.....................................................................................................................5Part A:..........................................................................................................................................5Part B:..........................................................................................................................................6Answer to Question 3:...................................................................................................................11Part A:........................................................................................................................................11Part B:........................................................................................................................................11Part C:........................................................................................................................................12References:....................................................................................................................................13
2AUDITING AND ASSURANCEAnswer to Question 1:Inherent riskJustificationAssertions and ledgeraccounts impactedAuditprocedure/taskJoint venturearrangementsWoolworthsLimited is involvedin various jointventures and it isinherent in the retailindustry tominimise the riskrelatedtooperational failure.There could bematerial impact onthe organisation incase of insolvencyof joint ventureagreement. Suchfailure couldincrease theexpenses forWoolworths, asthey have to bearthe burden ofexpenses andliabilities in jointventure (Byrnes etal., 2015).Assertions:ValuationObligations andrightsExistenceLedger accounts impacted:Asset impairmentNon-current assets,especially plant andequipmentAccumulateddepreciationWoolworths isinvolved incollaboration towork with itspartners of jointventure forminimising thedisarrangement riskin activities of jointventure. If the riskmanagement processis implemented, itwould ensure thesuccess of jointventures andstrategic objectives.This is because itwould help inanalysing the riskexposure, whichcould be monitoredeffectively. Financial riskWoolworths isexposed to foreigncurrency risk, whichis due to the sale ofgoodsandborrowings inforeign currencies.The credit risksignifies possiblefinancial loss; incase,thecounterparts do notperform as expectedfrom investing incash and cashequivalents,Assertions:AccuracyOccurrenceCompletenessLedger accounts impacted:RevenuePurchase/expenseTransaction reserveof foreign exchangeThe long-term riskmanagementstrategyofWoolworths is toensure that theorganisation couldfinanceitsstakeholderobjectives as well ascorporate objectives.The central treasurydepartment carriesout the financial riskmanagementgoverned under thepolicies of the
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