Audit and Assurance

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

1
Audit and Assurance
Executive Summary
The report includes the audit procedure of how the company carries the audit
procedure. The process is carried by the auditor, and it checks all the financial
statement of the company and gives its opinion upon the financial statement that
whether the financial statement is showing true and fair view or not. The report also
includes how the audit process is essential for the third party and to do in-depth
analysis one case has been taken which help to know about how the audit process
can affect the financial user and what are the points it should take into consideration
while doing the audit process. Lastly, the method also includes the recommendation
regarding the audit strategies and audit planning and how the auditor can improve
those with the organization.

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Audit and Assurance
Table of Contents
Introduction...................................................................................................................4
Discussion....................................................................................................................4
Overview of Case......................................................................................................4
Meaning of Professional Liability..............................................................................5
Key events in the case..............................................................................................5
Auditor Responsibility...............................................................................................6
Parties Responsible in case......................................................................................6
The reason behind the decision................................................................................7
Penalties imposed upon the culpability.....................................................................7
Issue of the Accounting standard in regard to the case...........................................8
Root causes of Issue................................................................................................8
Problems made by the auditor..................................................................................9
Recommendation and Improvements.....................................................................10
Conclusion..................................................................................................................12
References and Bibliography.....................................................................................14

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Audit and Assurance
Introduction
An audit is the examination and inspection of the financial books of the company. It
is the process in which the fairness of the financial statement is checked. The
method of auditing carried by both internal as well as an external person. If the audit
process is sent by an inner person than it is said to be internal audit under this the
person check whether all the control is working correctly or not (Ahmed Haji and
Anifowose 2016). It checks the internal control of the management to ensure that all
the management process is carried successfully in the organization. If the external
person does the audit than he is called auditor and the process is called statutory
auditor. In this, the auditor checks all financial books of the company and give an
opinion regarding whether the financial statement is showing accurate and fair view
or not (Barker and Branson 2014). Compliance means how the company comply
with the rules and regulation related to the industry norms. It is how the company
manage all the requirement of law and another standard upon the business of the
company. Auditor also checks whether the company had complied with all the law
and other regulation related to the financial statement and how they have treated
them in the financial reports (Bell, Causholli and Knechel 2015). It also helps to
ensure that the balance sheet made with all the standard and rules related to the
international accounting standard.
Discussion
Overview of the Case
` The report is based upon the importance of professional liability related to the
auditor, and to understand the topic the case study which is "Royal Bank of Scotland
vs Bannerman Johnston Maclay". The case is related to the auditor is not able to