logo

Auditing and Assurance, Assignment - HI6026

11 Pages2647 Words61 Views
   

Holmes Institute Sydney

   

Audit, Assurance and Compliance (HI6026)

   

Added on  2020-03-07

About This Document

In the HI6026 Assignment, we will discuss Auditing and Assurance, we also cover the Application of Several Analytic Techniques of analytics to the financial report as well as information on the DIPL, Results of the audit planning decisions, their results and influence,  Identification of inherent risk factors that arise from the business operations of the DIPL.

Auditing and Assurance, Assignment - HI6026

   

Holmes Institute Sydney

   

Audit, Assurance and Compliance (HI6026)

   Added on 2020-03-07

ShareRelated Documents
Running head: AUDITING AND ASSURANCEAuditing and AssuranceName of Student:Name of University:Author’s Note:
Auditing and Assurance, Assignment - HI6026_1
1AUDITING AND ASSURANCEAnswer 1:Application of Several analytic techniques of analytics to the financial report as well asinformation of the DIPL:There is a chance of development of the audit plan by the analytic techniques of thereport information of the financial nature of the DIPL. At the time the audit is undertaken, theplan of audit can be thought of as a specific guideline requiring to be maintained. In a morespecific manner it can be said that the task of maintenance cost of the audits is that in which theassessors are assisted. This is thought to be quite reasonable. It also helps to avoid any nature ofproblems of client as well as authority misunderstandings. The procedure or the way in which thedissemination of the financial declaration as well as the information is performed, are theanalytic approach to the declaration or the financial statement of the DIPL firm. Severalmechanisms assist the evaluation process along with the utility. It also facilitates the entireprocess and the mechanism along with the operations. The analytic approach for the declarationanalysis which is by nature, financial has certain benefits. It is possible for several accountants todecipher important information to help them in drawing major business conclusions. This systemof work also favours financial analysts.Analysing the financial declaration of a reference point which is common is helped by theanalytic approach to the common sizing. This also assists in the comparison of statementsfinancial in nature in terms of several time points or in terms of different corporations. Severallines of mentioned items in the economic report as well as the style of reporting can beunderstood and analysed by the assessors. Considering an example we can say that the nature inwhich a particular item is registered the items being the net assets as well as the net liabilities
Auditing and Assurance, Assignment - HI6026_2
2AUDITING AND ASSURANCEshould be considered also along with the owner equity in the financial reporting of the firm asalso the digression of the normal has a requirement to be established. The method of analysisneeds to be used for the plan execution as well as analysis in connection to the audit which isnothing but benchmarking. This is not improbable as benchmarking is regarded as a procedurefor analysis. The variance of the actual economic declaration found from the benchmark helps inevaluation of the deviation as also in the analysis of the reason behind the detected variance forthe root cause (Hayes, Wallage and Gortemaker 2014).In addition to this it can be said that ratio analysis is thought of as an analytic approach ofan appropriate nature that assists in the economic declarations in the assessment of the audit plan.Results of the audit planning decisions, their results and influence:The results of the planning decision regarding the audit and its plan are generallyinfluenced by the analytic method of thinking, and their results which are found such that thedissemination of financial statement information can be conducted. Citing an example it can besaid that the outcomes of the ratio analysis for example the current ratio of the firm namelyDIPL is calculated as 1.42 in 2013, 1.46 in 2014 and 1.5 in 2015. Also it can be said that theprofit margin or the ratio of profitability has been enumerated to be 0.068 in 2013, 0.60 in 2014and 0.06 in 2015. The specific profit ratio helps to reveal the state or condition of the incomeearned by the net sales of the DIPL firm (Arens et al. 2016). It can also be said that the netincome earned by the firm assist the assessor in knowing the nature of the expenses whether highor low. It also helps to understand whether the firm management control the requirement of thebudget curtail as well as the expenses of the firm. The favourable as well as the changes whichare unfavourable can be utilized as a reference factor in the audit or assessment of the DIPLfirm’s financial health as also the soundness along with the overall condition of the firm
Auditing and Assurance, Assignment - HI6026_3
3AUDITING AND ASSURANCE(Knechel and Salterio 2016). The ratio useful for determining the trends both desirable as well asundesirable is the solvency ratio (Cannon and Bedard 2016). It is calculated to be 0.62 in 2013,0.44 in 2014 and 0.21 in 2015. In order to evaluate whether the total cash flow of the economiccorporation is adequate or not in meeting the short and long term liabilities of the DIPL firm thethree –year period ratio proves useful. The assessors can understand the financial position of thefirm relatively in connection to this time period as well as factors unfavourable or undesirable inany way.Answer 2:Identification of inherent risk factors that arise from the business operations of the DIPL:It can be stated that there exists several significant factors which influence audit and alsoinvolve incidence of misstatements of the material in the announcements of economic natureconcerning specific issues. It can be asserted however that several forms of the systematic aswell as unsystematic risks are present which assist in the reflection of financial misstatements inthe declarations of the financial companies (Barton and Bruder 2014). There is also a probabilityof the detected risks being due to both financial as well as non-financial factors that ultimatelyhelp avoiding the a definite corporation for reflecting a modest, fair as well as free view forpertinent economic declarations. It can also be asserted that an evaluator has a possibility offinding it challenging to examine and recognise several risks. According to the opinion ofWilliam it can be said that the identified risks can be connected to several risks which areassociated with the omission with the risks of several diverse errors that cannot be considered fora specific book-keeper. All in all it can be said that the inherent risk has a chance of coming fromthe operations of business in connection to the DIPL (Beasley 2015).
Auditing and Assurance, Assignment - HI6026_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
The Financial Report and Information of DIPL
|11
|2621
|26

Assurance and Compliance Author Note: Question 1 3 Applying analytical procedures to the financial information for DIPL
|11
|2250
|29

HI6026 Audit, Assurance and Compliance | Holmes Institute Assignment
|10
|2094
|40

HI6026 - Audit, Assurance and Compliance1
|11
|2624
|227

HI6026 Aspects of Audit, Assurance and Compliance
|12
|2824
|59

HI5026 Auditing and Assurance Services
|13
|2968
|47