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Audit assignment
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Date: August 16, 2017 Reference style: Harvard
Audit Assignment
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Audit assignment
Table of Contents
Contents
Table of Contents.............................................................................................................................2
Introduction......................................................................................................................................3
Question 1........................................................................................................................................3
Effect of analytical procedures on audit planning.......................................................................5
Question 2........................................................................................................................................5
Risk assessment procedures.........................................................................................................5
Inherent risk.................................................................................................................................5
Inherent risk factors in DIPL.......................................................................................................6
Question 3........................................................................................................................................6
Risk of fraud.................................................................................................................................6
Fraud risk factors in DIPL and their effect..................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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Audit assignment
Introduction
Purpose
The purpose behind this writeup is to perfom analytical procedures for Double ink printers
limited (DIPL), analysis results from analytical procedures and effects of results from analytical
procedures on audit planning. Moreover, this writeup will also explain regarding inherent risk in
the DIPL. At the end of the write up fraud risk factors of DIPL will also analyze.
Background
DIPL is printing company provides printing on demand i.e. company prints number of prints
require by the clients only not more not less. Previously this company was audited by Jay and
Associates and from the audit of the year ended 2015; new audit firm undertakes the audit of this
firm. The company makes purchases from Australian and Indian sources. The company also
provides electronically searchable books with publisher’s tile i.e. e-books.
Method of investigation
The write up will use Australian auditing standards for providing understanding as well as a
proof for performing analytical procedures, make decisions regarding inherent risk factors and
fraud risk factors.
Scope
Besides the audit procedures analysis for DIPL, this writes up will also present an explanation
about the Australian auditing standard 520 for analytical procedures, Australian auditing
standard 200 for inherent risk and Australian auditing standard 240 for fraud risk.
Question 1
Preliminary analytical procedures are those procedures which performed by the auditor to make
an estimate regarding the nature time and extent of substantive analytical procedures required by
the audit of the specific organization (Anon., 2016). Under preliminary analytical procedures,
auditor requires making an understanding regarding the business of organization for which audit
will perform (BIGGS et al., 1999). Background information of the company demonstrates that
company is in make revenues from two ways one is from printing books, magazines etc and
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