Audit and Assurance Services

Running head: AUDIT AND ASSURANCE SERVICES
Audit and assurance services
Name of the student
Name of the university
Authors note

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AUDIT AND ASSURANCE SERVICES
Executive summary
The above study discusses two aspects. In the first part, the study talks about the current
management system of jersey limited to Australia which is known as a famous company of
fashionable clothes retailing and manufacturing. However the current management policy is
not satisfying and is not suitable for the company after going for business expansions. In the
second part the audit evidence has been discussed to meet the audit assertions, risks of audit
assertions and warranty provision.

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AUDIT AND ASSURANCE SERVICES
Table of Contents
Introduction....................................................................................................................3
Discussion......................................................................................................................3
Answer to question 1..................................................................................................3
Develop the plan to achieve any goals.......................................................................8
Empower the employees............................................................................................9
Answer to question no 2...........................................................................................10
Assertions of audit....................................................................................................11
Relating to the transactions class.............................................................................11
Relating to the assets, liabilities and equity balances..............................................12
Related to the presentation and disclosures.............................................................13
Risks of audit warranty provisions...........................................................................17
Conclusion....................................................................................................................18
References....................................................................................................................19

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AUDIT AND ASSURANCE SERVICES
Introduction
The above case study topic describes the main weakness of the fashion clothing stores
in jersey limited of Australia. Since the fashion industries are one of the promising sectors of
Australia and almost every people around the world specially the youths are very much
concerned about fashion. However currently the industry is facing specific issues with the
management which are directly affecting the growth of the company. The second case study
is related to the auditing of sweet sounds limited. The study report had also discussed the
main audit assertions related to the company, along with the audit risks associated with it.
Discussion
Answer to question 1
The fashion industries are one of the core areas to consider nowadays. This area
provides more opportunity and lucrative business prospect overall. The current generation is
very much concern about clothing and garments to look stylish. Similarly the jersey limited
in one such organisation which is doing the business effectively from a more extended
period. The company offers a wide range of fashionable garments to the customer for selling
purpose. The company had also acquired the right amount of profit over the years, and thus
they are looking to expand the business. Hence for this issue they have hired good amount of
store staff most of whom are younger people. However the company management does not
have any well-structured management system due to which the number of attrition rate has
increased overall. Thus it has become a big concern for the company. The fashion industries
of Australia have faced specific issues which are needed to be rectified and taken actions to
improve the same (Blandón, and Bosch, 2013). The fundamental problems related to the
current management system are as follows-

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AUDIT AND ASSURANCE SERVICES
Currently the company is dealing with specific issues related to the management
control of the company. Since the company management is thinking of expanding the
business, it is essential to have an effective control system both in internal as well as external.
The weakness of the organisation is related to all the features, factors, resources and the
internal procedures which had adversely affected the financing, actions, responsibilities and
process of organization at the operative and tactical level. Hence consequently the weakness
restricts the effectiveness of organisational objectives implementation and the limits and
success range. Thus the organisation with more weakness rather than strength cannot focus
over performance of the company in ranging the development of the organisation. Therefore
to perform broader range of the operating activities it is essential for the company to adapt
situations to determine threat. The company managers could look to implement different
strategies liked defensive strategy, mini-mini strategy in such case. Thus to cope with the
market strategy and the growing market opportunities to determine dominating weakness
turned into the challenge with some general meeting but have provided the opportunity to
deal with ambiguity for the managers to perform the overall analysis (Kinney et al.2013).
Area of knowledge and human resources
Jersey limited of Australia has faced specific problems in the areas of expertise and
human resources. Since the education and human resources both are considered as an
essential aspect to growing the business overall. Hence the weakness that the company faces
in this area are as follows-
 Low level of employee competency, lack of knowledge using ability and
technologies.

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AUDIT AND ASSURANCE SERVICES
 The management system had limited the free knowledge share, employees act
according to the principle of “more knowledge leads to more power” and to retain
more relevant information to themselves.
 . the company staffs are not ready to absorb and obtain knowledge to perform task.
 Dissatisfied workers and employees about the current working conditions, payment
system and social work problem could lead to high level of staff turnover.
 The executive does not care of the personal grooming of the employees. Thus there is
a lack of preparation to develop the competency of skills.
 The employees are not ready to learn new things and explore the new areas as a
whole.
 The employees are not risk takers, and the failures are strictly punished. Thus the
actual job atmosphere is hampered.
 Corrupt race amid the staffs looks to pleasure each other employees as latent
employees have affected productivity as a team and restricted to achieve particular
achievements.
 The location of the area could be also considered as a down moral aspect, and it
affects negatively over the mindsets and productivity.
Areas of logistics, production, technology and development
 These are considered as another critical area where there is a need for continuous
research and development. Thus it is essential to manage to meet all the required
needs and aspects so that the employees feel motivated as a whole. Hence the
weakness related to this aspect are as follows-
 Resistance management and the employment and the gaining of new technologies and
the operation into making.