Audit, Assurance and Services

Audit, Assurance and
Services

Contents
INTRODUCTION.......................................................................................................................................3
QUESTION 1..............................................................................................................................................3
(a) Concept of reasonable assurance, and how reasonable assurance is determined. Explain why an
auditor cannot offer absolute assurance...................................................................................................3
(b) Concept of 'professional scepticism' and how it is not the same as assuming that managers are
always trying to deceive auditors.............................................................................................................4
QUESTION 2..............................................................................................................................................4
Explain the ethical problem in this case. Why is it a problem?................................................................4
What can be done about it?......................................................................................................................5
QUESTION 3..............................................................................................................................................5
Explain why determination of materiality is a matter of auditor judgment. Refer to both qualitative and
quantitative materiality assessments........................................................................................................5
Explain whether (and, if so, how) the information provided impacts on the auditor's assessment of
preliminary materiality............................................................................................................................5
QUESTION 4..............................................................................................................................................6
(a) What are the auditor's responsibilities for 'going concern assumptions?............................................6
Identify any significant events or conditions that individually or collectively may cast significant doubt
on SS's ability to continue as a going concern.........................................................................................7
QUESTION 5..............................................................................................................................................7
REFERENCES............................................................................................................................................9

INTRODUCTION
An audit is an assurance service of a kind. Assurance programmers can be compliance-based or
legislative. They focus on ensuring that protocols, rules and regulations are followed by a
corporation or agency, and have both internally and externally confidence in government reports.
Assurance services are audit operations which provide income reports or enforcement initiatives
with an impartial, objective review (Axén, 2018). The aims of these audits are to ensure that
financial reports are correct and activities are conducted in compliance with relevant laws and
regulations by management, the Board, and regulatory.
QUESTION 1
(a) Concept of reasonable assurance, and how reasonable assurance is determined. Explain why
an auditor cannot offer absolute assurance
Reasonable assurance requires recognizing that there is a remote possibility of not
avoiding or identifying material errors on a periodic manner. While not complete certainty, fair
certainty is a good threshold of certainty, nonetheless. A difference exists between the standards
of Nga and the performance levels of the auditor. Fair verification is given by an audit, not total
assurance. The audit improves the validity and integrity of the details used in the financial
statement, but does not ensure that the financial statement will not collapse or be free from errors
or corruption. In addition, this is attributable to the meaning of financial reporting. Judgments on
financial accounting and the selection and implementation of various forms of reporting are
needed. In the context of organisation benefit, there is generally not one 'correct' response
(Bradbury, 2017). The auditor does not confirm that the corporation's purchasing stage is
'correct,' but only offer evidence of the suitability of the formulation and application of the
income statement and the significant accounting. The essence of the assessment process is yet
another explanation the guarantee is not complete. Auditors are unable to evaluate every
expenditure and payment history, so they use filtering (which may imply that relevant objects for
evaluation are not chosen). It is difficult to obtain accurate information regarding certain
financial statements, customers can obstruct justice, and auditors have a short time period upon
which to execute the audit.