logo

HI6026 | DIPL | Audit Assurance & Compliance Report

11 Pages2458 Words30 Views
   

Holmes Institute Sydney

   

Audit, Assurance and Compliance (HI6026)

   

Added on  2020-03-13

About This Document

The report discusses the application of analytical procedures to the financial report information of DIPL. Also, It discusses the Identification of inherent risk factors that arise from the nature of business operations of DIPL and the Identification and explanation of two key fraud risk factors relating to misstatements arising from fraudulent financial reporting.

HI6026 | DIPL | Audit Assurance & Compliance Report

   

Holmes Institute Sydney

   

Audit, Assurance and Compliance (HI6026)

   Added on 2020-03-13

ShareRelated Documents
Running head: AUDIT ASSURANCE AND COMPLIANCEAudit Assurance and ComplianceName of Student:Name of University:Author’s Note:
HI6026 | DIPL | Audit Assurance & Compliance Report_1
1AUDIT ASSURANCE AND COMPLIANCETable of ContentsAnswer to Question 1:.....................................................................................................................2Answer to Question 2:.....................................................................................................................3Answer to Question 3:.....................................................................................................................5Reference List..................................................................................................................................8List of Appendix............................................................................................................................10
HI6026 | DIPL | Audit Assurance & Compliance Report_2
2AUDIT ASSURANCE AND COMPLIANCEAnswer to Question 1:Application of analytical procedures to the financial report information of DIPL The data sourced from the financial report of DIPL has been conducive in thedevelopment of the audit plan. The planning process has been based on particular guidelinewhich has been undertaken as per the audit process. This has helped the assessor in consideringthe audit cost and helps in the aversion of the misunderstanding of the clientele. DIPL hasconsidered the analytical approach with the dissemination of the information as per the financialdeclarations. The primary process of the evaluation of the analytical approach has beenconsidered based on the specific approach for the financial declarations, financial analysts andmanagement accountants (Yasin and Nelson 2013).The main consideration for the analytical approach has been further seen with thereference point formed as per common sizing. Common sizing has been seen to be conducive inthe comparison of the financial statements as per different period in varied range of corporations.The ratio analysis has been further compared based on the financial declarations in the planningof the audit (Bell, Causholli and Knechel 2015).Explanation of the way the results influence planning decisions for the auditThe various types of the decision of planning have been stated based on analyticalapproach and disseminating information in the financial statements. For example the currentratio of the various firms for DIPL has been considered as 1.42 in 2013, 1.46 in 2014 and 1.5 in2015. The profitability factor has been considered as per the ratio, which is calculated as 0.068 in2013, 0.60 in 2014 and 0.06 in 2015. The profitability and the profit margin of the company have
HI6026 | DIPL | Audit Assurance & Compliance Report_3
3AUDIT ASSURANCE AND COMPLIANCEbeen further able to reveal that the position of the net income which has been earned by thecompany in compared to the net sales. Despite of this consideration, the assessor needs tounderstand, if the expenses are low or high and the management team is having the necessity tocurtail the budget and time. The unfavourable and the favourable have been seen based on thesoundness in the financial position and audit assessment. Comparably in 2015 and 2013 thesolvency ratio of the company has been seen to be 0.62 and 0.21 (Lindeboom, van der Klaauwand Vriend 2016).Answer to Question 2:Identification of inherent risk factors that arise from nature of business operations of DIPLThe different level of the auditing factors has been considered based on the severalincidences of material misstatements in the financial announcements in a certain organisation.The various types of the systematic and the unsystematic risk have been further seen to be basedon the financial declarations of the corporation. It has been further assessed that the risks hasbeen considered on both financial as well as non-financial factors. Nevertheless, an evaluatorneeds to consider the detection of the various types of the risks. The risks may be further seen tobe linked with the risks interrelated to the omission and diverse errors as per the diversifiednature of the operation of business for DIPL (Giard et al. 2016).As per the given scenario it has been seen that several transactions were omitted by theaccountants otherwise by the management of the DIPL. This can be further sequentially based onthe different types of the inconsistencies in the planning and the sales activities. The varioustypes of the depictions of the financial declarations has been further associated to theaccomplishment of the profit from the revenue acquired from the sales. The present analysis has
HI6026 | DIPL | Audit Assurance & Compliance Report_4

End of preview

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

Related Documents
HI6026 | Audit, Assurance & Compliance Assignment
|9
|2015
|39

HI6026 - Audit, Assurance and Compliance - Individual Report
|11
|2064
|177

HI6026 - Audit, Assurance and Compliance | Holmes Institute | Assignment
|9
|2081
|78

HI6026 - Audit,Assurance & Compliance | Financial Report
|9
|2083
|49

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

Audit Assurance and Compliance- Assignment
|8
|1756
|83