Audit and Assurance

Running head: AUDIT AND AASURANCE
Audit and Assurance
Name of the Student:
Name of the University:
Author Note:

1AUDIT AND ASSURANCE
Table of Contents
Introduction................................................................................................................................3
Part A.........................................................................................................................................4
Materiality..................................................................................................................................4
Determining the overall materiality.......................................................................................4
Overall Materiality.................................................................................................................5
Part B..........................................................................................................................................6
Analytical Procedure..............................................................................................................6
Key Business Risk..................................................................................................................6
Part C..........................................................................................................................................8
Conclusion..................................................................................................................................9
Reference..................................................................................................................................10
Appendix:.................................................................................................................................10

2AUDIT AND ASSURANCE
Executive Summary:
The report is about the analytical procedure an auditor shall follow. On the base of a case
study of Cloud 9 Pty.Ltd business risk assignment is assessed as well overall materiality is
concluded. In the other part of the report analytical procedure is discussed. The last part of
the report discusses about the remuneration of executives of the companies that are listed in
the ASX. For this the company selected is from the retail industry Wesfarmers, Woolworth
and Caltex. ltd
Introduction
Auditing is a prearranged form of examination and confirmation of bookkeeping
proceedings and reports, in command to appraise and evaluate the genuineness of the
proceedings and accounts. Auditing is a perception, which is designed on the source of
bookkeeping and spins from place to place the thought of inspection of books of financial
records and declarations, in command to assess whether these declarations and accounts
portray a true and fair image of an administration’s books of justification. Auditing is usually
assumed to evaluate the profit and loss declaration as well as appraise the image portrayed by
the balance sheet of a society. The determination of auditing is accompanying an inspection
and examination on the genuineness and the precision of the material represented by the
accounts of financial records of a group.

3AUDIT AND ASSURANCE
Part A
Materiality
As per International Accounting Standard Board an information is considered as
material when an omission or misstatement is present. It manipulates the judgement
regarding the economic decision that the user take on the base of monetary statements.
Materiality size is depended on the size of the article or fault that is been pointed in the
particular situations due its omission as well as misstatement. There is threshold point
provided by the materiality slightly than actuality being of qualitative feature that the data is
useful. At the time of preparing the financial report the company should conclude the
materiality in order to be sure that the financial statement are correct in case of materiality.
(Australia.gov.au. 2019).
Determining the overall materiality
The materiality for financial report is been set by the auditors on overall basis during
the planning stage. The foremost reason for setting out the materiality during planning the
audit is just for recognizing the materiality performance so that an auditor can plan the
procedure for auditing. This include an evidently unimportant threshold for collecting
misstatements. This approach is not mandatory to follow. The three key steps for calculating
the overall materiality is-
 Selection of appropriate benchmark
 Determine certain level of percentage of benchmark.
 Explaining the choice.