Audit and Assurance: Understanding the Concepts and Procedures

Audit
And
Assurance

Table of Contents
QUESTION 1...................................................................................................................................3
(a).................................................................................................................................................3
3....................................................................................................................................................3
4....................................................................................................................................................3
5....................................................................................................................................................4
B...................................................................................................................................................4
C...................................................................................................................................................4
3....................................................................................................................................................5
QUESTION 2...................................................................................................................................5
A. Procedures to be taken with respect to uncorrected misstatement:.........................................5
b. Going Concern Indicators:.......................................................................................................5
QUESTION 3...................................................................................................................................7
Interim Audit: ............................................................................................................................10
Final Audit:................................................................................................................................10
Procedure of Interim Auditing:..................................................................................................10
Impact of Interim Audit on Final Audit:....................................................................................11
REFERENCES..............................................................................................................................12

QUESTION 1
(a)
Audit credibility is about capability for external auditor, for their auditing activities for
behave for honesty, objectivity. Public views for integrity for audits which are focus more for
their interpretation for independence for auditor for their legit independence.
Audit committee: Audit committee shall comprise for the specific number for
representatives which are board for directors for corporations whose primary responsibilities are
assists for auditors for living independent for management for the business. i.e. committee should
assists auditor for their multiple audit conflicts for oversee these.
Size for the audit company: The significant feature which represents the independence
for auditor for the scale for audit company. The integrity for the auditor for specially which are
related for audit accuracy. Large audit company's should has impartial quality which are reliable
for financial services, more modern technology, more intelligent employees who are capable for
conducting large audits which are relative for small company's. Large audit company's has
higher customers portfolio they are dealing for various customers which enables them for various
management demands, whereas small businesses offers customise services for their customers
portfolios which are small, they has yield for the requirements for the management.
3
Competition are the external parties which influence the independence for auditors
(Chambers and Odar, 2015). The customers which are quickly procure the services for another
auditor, various company's which works for the highly competitive market which has trouble for
living autonomous.
4
The terms for audit company which are relates for the period for time which needed for
meet the particular client's audit requirements. The long relations for the corporations which
includes accounting company's which are probable for occur the identification for corporations
for its customers needs which makes it impossible for the company's which are larding auditing
for taking autonomous actions for better performance which helps for higher probability for the
businesses (Denisov, Khachaturyan and Umnova, 2018).

5
IFAC's codes which are for ethics suggests the customer size for determine for fee level
which includes the doubts which are for their casts about the integrity for auditors. The fee for
the clients should not surpass the certain proportion for the overall audit company's turnover,
EFAA which states plainly. The auditors which tends for has collusion for the managers for
covering illegal practices for the transparency scandals. The key feature for reservation the
money which the auditors collects for their clients towards non fees audit for its customers
(Engelbrecht, Yasseen and Omarjee, 2018).
B.
1. There is the lack for independence for this case audit manager which holds the securities
for the clients company which affects the opinion for auditors.
2. This case for subjective for nature, which considers aspects here the clients for major
source for income for auditors for their total income are 700000 which are for 100000 are
receivable for clients.
3. There is independence for audit for this case for auditor which has takes loan form for the
same bank which she is auditor.
4. There no matter for opinion for auditors for the given case which auditor are ask for
giving advice for not for audit engagement which views there is no requirement for
checking integrity for independence for the auditor.
C
External auditor: Public accountant for external auditor are who performs the
assessments for the company which they runs for their businesses. External auditors are who are
independent for the entities which financial statements, management control mechanisms for
these company's which assess the impartially. This auditing opinion are the strongly respected
for customers which are for needs the unbiased reviews for the corporation's financial statements.
Internal auditor: Internal auditors are qualified for business professional who conducts
unbias impartial financial, organisational assessments which includes corporate governance. This
is their responsibility which ensures the businesses compliance for regulations for running
company. The accountable for information for the company which should collects the internal
auditor for the company for better performance which helps for higher profitability for the
businesses (Gal and Akisik, 2020).