Audit Issues of CYBG PLC CDI 1:1 FOREIGN EXEMPT LSE

Running head: AUDIT ISSUES OF CYBG PLC CDI 1:1 FOREIGN EXEMPT LSE
Audit Issues of CYBG PLC CDI 1:1 FOREIGN EXEMPT LSE
Name of the Student
Name of the University
Author note

1AUDIT ISSUES OF CYBG PLC CDI 1:1 FOREIGN EXEMPT LSE
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Section 1.....................................................................................................................................3
Section 2.....................................................................................................................................6
Section 3...................................................................................................................................13
Conclusion................................................................................................................................14
Reference..................................................................................................................................16

2AUDIT ISSUES OF CYBG PLC CDI 1:1 FOREIGN EXEMPT LSE
Executive summary
The aim of the report is to analyse the necessity of the materiality concept while performing
the audit work of any organisation. The report contains the details of the audit process of the
CYBG bank. The first section of the report contains the detailed elaboration of the materiality
misstatements in the audit report. The second section give an explanation of the various ratios
of the company and based on these ratios the decision taken by the auditors. The last part
contains the cash flow analysis and the going concern identity of the organisation.

3AUDIT ISSUES OF CYBG PLC CDI 1:1 FOREIGN EXEMPT LSE
Introduction
It is essential for every organisation to maintain a clear and transparent financial
statement to avoid any unmodified report of the auditor and for that reason the organisations
should follow all the international standards of auditing. The international standard of
auditing states that the organisations should disclose all the material misstatements to the
auditor to avoid any risk of losing the going concern identity of the organisation.
Discussion
Section 1
Level of materiality to be used
For financial reporting materiality is the most significant factor that is to be measured
by the auditor. The international standard of auditing highlight the following points that are to
be considered by the auditors:
The material misstatements are considered if they could effect the decisions of users of the
financial statements.
The materiality can be adjudged based on the situation including the scope and nature of the
misstatements.
The user’s common needs as a group is also reflected as base for the judgement of the
materiality.