Audit of Aeris Environmental Ltd

Running head: AUDIT
Audit of Aeris Environmental Ltd
Name of the Student:
Name of the University:
Author’s Note:

1AUDIT
Executive Summary
The aim of the assignment is to conduct a risk based audit program on the Aeris Environmental
Ltd. The audit programme was conducted by analysing the various accounts of the company. The
substantive tests of transactions and substantive test of balances was evaluated for the company.
The assertion in contrast to the account balances of the company was also analysed. The audit
procedure followed by the auditor for assessing the risk of the various account of the company
was taken into account. The financial analysis of the company was evaluated with the help of the
ratio analysis for the company.

2AUDIT
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
1.0 Aeris Environmental Ltd.......................................................................................................3
2.0 Identification of Key Audit Risks..........................................................................................3
3.0 Ratio Analysis........................................................................................................................5
4.0 Material Account Balance.....................................................................................................6
5.0 Material Account Balances....................................................................................................7
6.0 Key Assertions of the Material Accounts..............................................................................8
7.0 Comprehensive Set of Audit Steps......................................................................................10
8.0 Sampling Plan......................................................................................................................12
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................14

3AUDIT
Introduction
The auditing of the Aeris Environmental Ltd was evaluated for conducting the financial
inspection of the various accounts of the company. The systematic examination and evaluation of
the various accounts of Aeris Environmental was taken into consideration for the examination of
the various accounts, documents and statuary record of the company. The key accounts for the
company was evaluated for the company by assessing the changes observed in the accounts.
There were many material account balances assessed by including the financial report of the
company. The audit evaluation for the company was evaluated by assessing the material account
balances of the company and the relevant financial report assertions was done for the company
(Vogel 2014).
Discussion
1.0 Aeris Environmental Ltd
The systematic examination and evaluation of the various accounts of the Aeris
Environmental Ltd was taken into consideration for the examination of the various accounts,
documents and statuary record of the company.
2.0 Identification of Key Audit Risks
The business of Aeris Environmental Company is considered for assessing the financial
statement of the business and different risks, which is faced by the business. The risks, which are
to be identified for the business, is from the perspective of audit (DeFond and Zhang 2014). The
main risks, which can be identified from the annual reports, is the significant decrease in the cash
balance of the business. The cash balance is shown to have fallen significantly in comparison to
previous year analysis, which suggest that, the management of the business (Beck and Mauldin