Audit and Assurance: Identification of Risks and Substantive Procedures

Running head: AUDIT AND ASSURANCE
Audit and assurance
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AUDIT AND ASSURANCE
Executive summary:
The paper is developed to critically assess and analyse the trend for the identification of
problems in the auditing and assurance services. For this purpose, the given two case studies and
the associated facts with the have been evaluated. The first case has been addressed by assessing
the risk of material misstatements related to the inventory of Computing Solutions Limited and
the second case addresses the assessment of material misstatement related to intellectual property
of Beautiful Hair Limited. In addition to this, the risks associated with the accounts have been
identified by developing substantive audit procedures. The rationale of the auditing standard
ASA 701 has been also explained for the identification of key audit matters in the given cases.

AUDIT AND ASSURANCE
Table of Contents
Introduction:....................................................................................................................................2
Discussion:.......................................................................................................................................2
Question 1:.......................................................................................................................................2
Identifying and explaining two key assertions at risk concerning inventory:.................................2
Description of two substantive procedures in response to the audit risk identified:.......................2
Question 2:.......................................................................................................................................2
Identifying and explaining two key assertions at risk concerning intellectual property intangible
asset:................................................................................................................................................2
Description of two substantive procedures in response to the audit risk identified:.......................2
Recommendations:..........................................................................................................................2
Conclusion:......................................................................................................................................2