HI6026 - Audit, Assurance and Compliance, Question/Answer

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1AUDIT, ASSURANCE AND COMPLIANCE
Table of Contents
Answer to Question 1:................................................................................................................2
Answer to Question 2:................................................................................................................4
Answer to Question 3:................................................................................................................5
Answer to Part A:...................................................................................................................5
Answer to Part B:...................................................................................................................8
References:.................................................................................................................................9

2AUDIT, ASSURANCE AND COMPLIANCE
Answer to Question 1:
While developing the plan of audit relating to Double Ink Printers Limited (DIPL),
the analytical procedure related to financial information offers great benefits. On the other
hand, the plan of audit offers the needed guidelines and directions to the auditors during the
operations of audit. In other words, the plan of audit helps the auditors to maintain the audit
cost in a certain limit to curb confusion with the audit clients (Carson, Redmayne and Liao
2014). The procedure of evaluating the financial performance of the organisation could be
formed with the help of various mechanisms.
It has become possible for the financial analysts and accountants to utilise the
financial information in order to make various business decisions through the analytical
method. The common size analytical method helps in the process of evaluating the financial
declaration of the organisation from the prevalent referential points. The fundamental merit is
that it lends support to compare the financial statement from different financial timelines.
The financial analysts and accountants could make use of various lines of items from
the financial statements and accordingly, the base of preparation could be made for the firms.
For example, the process of registration of various accounting and financial items in the
financial statements like owner’s equity, overall liabilities and assets could be taken into
account along with the dissection of digression from the normal position (Carson et al. 2014).
One of the primary analytical processes related to financial information is benchmarking,
which could be used to evaluate the plan of audit. In addition, ratio analysis is a fundamental
analytical procedure associated with the financial information of a firm, as it could be used to
compare the performance of the firm with its competitors to develop the audit plan (Cohen
and Simnett 2014).