Financial Statement Analysis and Audit Risks
Added on 2020-03-13
13 Pages2653 Words73 Views
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Audit 1Audit, Assurance, and Compliance
Audit 2Table of ContentsIntroduction:...............................................................................................................................3Case Analysis:............................................................................................................................4Question 1:..............................................................................................................................4Question 2:..............................................................................................................................6Question 3:..............................................................................................................................6A) Two possible fraud activities:........................................................................................6B) Cause of fraud identified:..............................................................................................7Conclusion:................................................................................................................................8References:.................................................................................................................................9
Audit 3Introduction:The main purpose of this report is to develop the understanding and knowledge about theanalytical procedure for evaluating the impact o0f financial reports on the audit planningdecision. It discusses the important ratio in relation to DIPL that are important for thebuilding the audit planning decision. Along with this, report discusses about the two inherentrisks that may arise from the nature of DIPL business operations and impact of risks on thefinancial reports or statements. At the same time, it also discusses about the two differentfraud risks that may occurred from the business operations relating to misstatements from thefinancial reporting activities. Furthermore, it also represents the cause of the fraud in thefinancial reporting transactions in relation to business operations of DIPL. It also describesthe impact of the fraud activities on the audit planning and audit work.
Audit 4Case Analysis: Question 1: Preliminary Analytical procedures:This method enhances the efficiency of auditor in relation to audit of company financialstatements. Preliminary Analytical procedures involve the evaluations of the companyfinancial statements or information through measuring relationship between both financialand non-financial data. This procedure supports in planning, collecting the evidence and finalreview of the audit work. Along with this, analytical procedure helps the auditors indetermining the timing, nature, and scope of their auditing procedure (Humpherys et al,2011). The main purpose of this procedure is to develop the understanding of the auditorsabout the client and measuring audit risks through using the unexpected or expected data orbalances. Along with this, procedure involves the different tools such as account balance comparison,calculation of significant ratios, regression analysis, and ratio calculation through using thefinancial and non-financial information (Brazel et al, 2013). These different tools support theauditors in audit planning. The main purpose of this procedure is to find out the potentialaccount errors and understand business and its transactions. The analysis of ratio in analytical procedures for the DIPL financial report information for theyear 2013, 2014, and 2015 is as below:Double Ink Printers LtdName of ratio201320142015liquidity ratio:current ratio = Current assets / current liabilities1.4251.4671.501Current Assets53,85,93875,09,15096,00,929
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