Audit, Assurance and Compliance

Audit, Assurance and
Compliance

Contents
INTRODUCTION...........................................................................................................................................3
QUESTION 1.................................................................................................................................................3
(a). Write a letter to Nayan explaining the concept of reasonable assurance...........................................3
(b). Explain in the letter to Nayan the concept of 'professional scepticism’.............................................4
QUESTION 2.................................................................................................................................................5
(a). Explain the ethical problem and why it is a problem.........................................................................5
(b) What can be done about it..................................................................................................................5
QUESTION 3.................................................................................................................................................6
(a). Explain why determination of materiality is a matter of auditor judgment........................................6
(b). Explain whether the information provided impacts on the auditor's assessment of preliminary
materiality................................................................................................................................................6
QUESTION 4.................................................................................................................................................7
(a). Explain the auditor's responsibilities for 'going concern assumptions...............................................7
(b). Identify any significant events or conditions.....................................................................................8
QUESTION 5.................................................................................................................................................9
(a). Justify the events and accounting treatment......................................................................................9
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Audit & Assurance Compliances serves to maintain an overview of how businesses adhere
to Taxation Operating & Legal compliance requirements and ensure accountability in company
activities to meet the requirements of all shareholders. There is a need for assurance only occurs
when a party intends to take happiness in an issue formulated by a second player, and
confirmation is supplied and when an autonomous point of view can be services of a third party.
An audit is the review of an entity's financial statements of somebody outside of that entity, as
described in the financial statement (Brenninkmeijer and et.al, 2017). A balance sheet, an income
statement, a statement of adjustments in equity, an income statement and documents containing a
description of relevant accounting practices and other supplementary documents are contained in
the financial report. The aim of the audit is to determine if the data contained in the financial
report, taking in its entirety, represents the company's monetary condition. This evaluation
addresses many subjects that are mostly about the audit and auditors, and how they work in each
event-related organisation. The objective of this review is to ensure that business statements are
accurate and fair; all operations should also be carried out in accordance with regulations and
practices.
QUESTION 1
(a). Write a letter to Nayan explaining the concept of reasonable assurance
To: Nayan
Subject: Explaining the concept of reasonable assurance
Dear Nayan,
I hope you doing well and in good health. I am enjoying my new job and environment of
business. Thanks for your letter and it was great to hear from you. You asked me to tell you
about reasonable assurance. It requires for better understanding that there is still a potential
probability of not eliminating or finding material defects on a periodic basis. It needs a greater
understanding there is still a possible possibility that material defects will not be removed or
detected on a recurring basis (Davis, 2017). Similar assurance, if not total faith, is indeed a high
degree of certainty. There is a discrepancy between the requirements of the NGA (National