Audit and Assurance: Understanding the Process and Components

Audit
And
Assurance
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Table of Contents
INTRODUCTION................................................................................................................................3
QUESTION 1.......................................................................................................................................3
A. Audit credibility & steps which are related for accounting profession:................................3
B. The situations for independence auditor:...............................................................................4
C. Concept for objectivity:.........................................................................................................4
QUESTION 2.......................................................................................................................................6
(a) The procedure by auditor for uncorrected material misstatement.........................................6
(b) Going concern Indicators......................................................................................................6
(c) Going Concern procedure.....................................................................................................7
QUESTION 3.......................................................................................................................................9
(1) Audit risk and their components...........................................................................................9
(b) Identify audit risk and auditor response................................................................................9
C. The audit strategy which lay outs the audit scope, timetable, course, assists for designing
audit plans:................................................................................................................................10
D. Difference for interim audit & final audit:...........................................................................10
E. Procedures which carries during interim audit:....................................................................10
CONCLUSION..................................................................................................................................11
REFERENCES...................................................................................................................................12
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INTRODUCTION
Audit is about systematic review & assessment for information. It is about view the
information for the company's financials statements which helps for improving quality for the
information for reduce chance for problems which are occurring for the indirect information. It is
the types for assurance services for the company. It helps company's for its financial statements. It
is the process for evaluating accounting entries for the financial statements for the company.
Assurance is the process for analysing the information. It helps company's for better performance
for its better analysis for statements for the businesses. Audit helps company for its financial
decision making which helps for higher profitability for the businesses. This report includes topics
which related for audit & assurance for the businesses (Maroun, 2019) .
QUESTION 1
A. Audit credibility & steps which are related for accounting profession:
Audit credibility is about the correspondence for the capability for external auditor,
throughout his, her auditing activities, for behave with honesty & objectivity. People's views for
integrity for audits are focuses for their interpretation for independence for auditor than for legit
independence.
Audit committee: Audit committee shall comprise for the specified number for
representatives for board directors for corporation whose primary responsibilities are for assists
auditors for stay independent for the management. i.e. committee should assist auditors for multiple
audit conflicts for overseeing these.
Size for audit form: The significant feature which are represents independence for auditor
are the scale for the audit businesses (Zhang, 2019). The integrity for the auditor is speciality which
are related for audit accuracy. Big audit companies which makes certain things for impartial quality
audit services for the bigger audit company's will makes certain for having impartial quality audit
services for the bigger audit company's which appears for providing stronger analysis facilities
which are reliable for financial services. The modern technologies which are more qualified staff
who will be capable for conducting large business audits which are relative for smaller audit
company's. Big audit companies which has small businesses offer which customise services since
their customers portfolios are smaller & they will have yield for the requirements for management.
Competitiveness degree for the audit service sector:
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Competition describes the external influence which are impacting the independence for
auditors. The customers which quickly procure services for another auditor, several company's
which works for the highly competitive market which have trouble staying autonomous.
Tenure for audit company which meets the interests for the clients: 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 relationship for the corporation & accounting company are probable for
occur for the close identification for corporation for its customers needs, making it impossible for
the auditing company which takes autonomous actions.
Auditing size & non audit fees: IFAC's codes for ethics which suggests the company size
for determines for fee level could cast doubts about the integrity for the auditor. The fee for client
should not surpass the certain proportion for the overall audit company turnover, EFAA states
plainly. The auditors tended for has collusion for managers for covering illegal practices for
transparency scandals. The key feature for reservation are the money for the auditors which are
collected for clients for their non credit fees.
B. The situations for independence auditor:
1. There are lack for independence for this case audit manager for holding securities fo the
client company which may affects auditor's opinion.
2. This case are subjective for nature, the considerable aspects which are here is clients are
major source for income for auditor since total income are 700000 for which 100000 are
receivable for clients (Al-Dhamari and Chandren, 2018).
3. There are the lack for independence for audit for the case which auditor has taken loan form
for bank for which she is auditor.
4. There are for auditor opinion no matter for given case for auditor is asks for giving advice
which are the not audit engagement thereby there are no requirement for checking integrity
& independence for auditor.
C. Concept for objectivity:
External auditor: The primary goal of external auditors, also known as financial audits, is
to allow auditors to conduct their company's financial audits independently and independently, and
to make a judgement about whether: Financial Statements prepared by management are accurate
and equitable in all audit report, as well as whether such financial statements in compliance with an
appropriate financial reporting standards in all audit report. And, in order to achieve this goal,
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