Audit Program for Australia Bank Limited Company
VerifiedAdded on 2023/06/07
|16
|1631
|139
AI Summary
This presentation outlines the substantive audit procedures developed by the team for the financial report of Australia Bank Limited Company. The team focused on the statement of financial position, income statement, statement of comprehensive income, statement of changes in equity, cash flow statement, summary of notes to the financial statements, and the declaration by the Director. The presentation also discusses inherent risk, control risk, key business risks, and how the group reduced risks. Additionally, it covers analytical procedures on the balance sheet, accounts identified as key matters, different material balances, material account balances and assertions, description of the assertions, and how to treat material significant matters.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
GROUP
ASSIGNMENT
Audit Program For Australia Bank
Limited Company
ASSIGNMENT
Audit Program For Australia Bank
Limited Company
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Introduction
The team developed a substantive audit procedures for the
financial report of Australia bank Limited for the period ended
30 September 2017
The team focused on;
Statement of financial position
Income statement
Statement of comprehensive income
Statement of changes in equity
Cash flow statement for year
Summary of the notes to the financial statements
The declaration by the Director
The team developed a substantive audit procedures for the
financial report of Australia bank Limited for the period ended
30 September 2017
The team focused on;
Statement of financial position
Income statement
Statement of comprehensive income
Statement of changes in equity
Cash flow statement for year
Summary of the notes to the financial statements
The declaration by the Director
Key Business
Risks
Inherent risk
Occurs when auditors fail to detect material
misstatement of financial statements.
Control risk
This is a risk that the internal control of the
organization fails to detect material
misstatements.
Detection risk
A risk that the auditors fails to detect a material
misstatement.
•Inherent risks
•Control risk
•Detection risk
Risks
Inherent risk
Occurs when auditors fail to detect material
misstatement of financial statements.
Control risk
This is a risk that the internal control of the
organization fails to detect material
misstatements.
Detection risk
A risk that the auditors fails to detect a material
misstatement.
•Inherent risks
•Control risk
•Detection risk
How the Group Reduced
Risks.
Collecting substantial evidence
Proper assignment of audit tasks to the members
Applying professional skepticism while conducting
the audit
Reviewing of the audit information from the
management of the company
Practicing independent judgment.
Risks.
Collecting substantial evidence
Proper assignment of audit tasks to the members
Applying professional skepticism while conducting
the audit
Reviewing of the audit information from the
management of the company
Practicing independent judgment.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Analytical Procedures on
the Balance Sheet
Type of financial ratio Calculation Ratio
Current ratio Current Assets/ Current
liabilities
813,399/716847
1.14
Debt to Equity ratio Total debt/ Total equity
764847m/48,552m
15.75
Operating margin ratio Operating income/Sales
6719m/9634m
0.70
Ratio of gross margin Gross profit/Sales
2286m/26724
0.10
the Balance Sheet
Type of financial ratio Calculation Ratio
Current ratio Current Assets/ Current
liabilities
813,399/716847
1.14
Debt to Equity ratio Total debt/ Total equity
764847m/48,552m
15.75
Operating margin ratio Operating income/Sales
6719m/9634m
0.70
Ratio of gross margin Gross profit/Sales
2286m/26724
0.10
Accounts Identified as key
Matters
The decisions to
recognize conduct
costs
Amount of credit for
the company
The amount of
deposits for the
depositors
Amount of loan for
the company
The value of assets
owned by the
company
The number of
accounts the
company opened in
the current year
The availability of the
company’s
information in the
treasury
Matters
The decisions to
recognize conduct
costs
Amount of credit for
the company
The amount of
deposits for the
depositors
Amount of loan for
the company
The value of assets
owned by the
company
The number of
accounts the
company opened in
the current year
The availability of the
company’s
information in the
treasury
Different Material
Balances
Balances
Cash and liquid
assets
Revenues
Trading securities
Loans and advances
Receivables
Trading derivatives
Payables
Current tax liabilities
Disbursements
Bonds, notes and
subordinated debts
Balances
Balances
Cash and liquid
assets
Revenues
Trading securities
Loans and advances
Receivables
Trading derivatives
Payables
Current tax liabilities
Disbursements
Bonds, notes and
subordinated debts
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Material Account Balances
and Assertions
Assets Assertions
Cash and liquid
assets
Accuracy
Timely
Revenues Accuracy
Cut off
Trading
securities
Accuracy
Cut off
Loans and
advances
Occurrence
Cut off
Receivables Accuracy
Classification
Liabilities Assertions
Trading
derivatives
Accuracy
Cut off
Payables Occurrence
Completeness
Current tax
liabilities
Occurrence
Cut off
Disbursements Classification
Accuracy
Bonds, notes and
subordinated
debts
Accuracy
Cut off
and Assertions
Assets Assertions
Cash and liquid
assets
Accuracy
Timely
Revenues Accuracy
Cut off
Trading
securities
Accuracy
Cut off
Loans and
advances
Occurrence
Cut off
Receivables Accuracy
Classification
Liabilities Assertions
Trading
derivatives
Accuracy
Cut off
Payables Occurrence
Completeness
Current tax
liabilities
Occurrence
Cut off
Disbursements Classification
Accuracy
Bonds, notes and
subordinated
debts
Accuracy
Cut off
Description of the
Assertions
Classification The team
assembled
evidence of the
same kind and
put together for
auditing.
Completeness This was to
ensure that the
processes for the
period were
complete. The
balances for the
period where
ascertained by
the team.
Accuracy The team
ensured that
the amounts
which were
and figures
were allocated
correctly and
fairly.
Cut off The team
ensured that
the amount
recorded on
the balances
were recorded
in the correct
period.
Assertions
Classification The team
assembled
evidence of the
same kind and
put together for
auditing.
Completeness This was to
ensure that the
processes for the
period were
complete. The
balances for the
period where
ascertained by
the team.
Accuracy The team
ensured that
the amounts
which were
and figures
were allocated
correctly and
fairly.
Cut off The team
ensured that
the amount
recorded on
the balances
were recorded
in the correct
period.
How to Treat Material
Significant Matters
Cash and liquid assets. The team ensured that the
cash balances recorded in the statement of financial
position reflected a true and fair view of the financial
statements
The revenue reported in the income statement of the
company was of material significance to the group
The team performed test control on the accuracy and
cut off of the company financial information.
The team focused on the control on the treasury
derivation like the SWAPs, futures and forwards.
The team also focused on the payables and current
tax liability of the company. This information was
necessary to ensure that the company in paying off
its debts.
Significant Matters
Cash and liquid assets. The team ensured that the
cash balances recorded in the statement of financial
position reflected a true and fair view of the financial
statements
The revenue reported in the income statement of the
company was of material significance to the group
The team performed test control on the accuracy and
cut off of the company financial information.
The team focused on the control on the treasury
derivation like the SWAPs, futures and forwards.
The team also focused on the payables and current
tax liability of the company. This information was
necessary to ensure that the company in paying off
its debts.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
CONT.
The team performed test control on the accuracy
and cut off of the company financial information.
The control tests was done to determine whether
the information was the accuracy and cut offs on
the underlying information.
The team also focused on the payables and
current tax liability of the company. This
information was necessary to ensure that the
company in paying off its debts
The team did more assertions on; loans and
advances, receivables, disbursements, bonds,
notes and subordinated debts.
The team performed test control on the accuracy
and cut off of the company financial information.
The control tests was done to determine whether
the information was the accuracy and cut offs on
the underlying information.
The team also focused on the payables and
current tax liability of the company. This
information was necessary to ensure that the
company in paying off its debts
The team did more assertions on; loans and
advances, receivables, disbursements, bonds,
notes and subordinated debts.
References
Annual Financial Report 2017. (2017). Financial Statements, [online] (ABN
12 004 044 937), pp.57-144. Available at: http://www.nab.com [Accessed
26 Sep. 2018].
Bertrand, A. and Coibion, A. (2009). Shareholder Suits against the
Directors of a Company, against other Shareholders and against the
Company itself under Belgian Law. European Company and Financial Law
Review, 6(2-3).
Chiappetta, F. and Tombari, U. (2012). Perspectives on Group Corporate
Governance and European Company Law. European Company and
Financial Law Review, 9(3).
Choi, D., Shah, C. and Singh, V. (2016). Which team benefits from
collaboration?: Investigating collaborative information seeking using
personal and social contextual signals. Proceedings of the Association for
Information Science and Technology, 53(1), pp.1-6.
Drake, M., Quinn, P. and Thornock, J. (2017). Who Uses Financial
Statements? A Demographic Analysis of Financial Statement Downloads
from EDGAR. Accounting Horizons, 31(3), pp.55-68.
Annual Financial Report 2017. (2017). Financial Statements, [online] (ABN
12 004 044 937), pp.57-144. Available at: http://www.nab.com [Accessed
26 Sep. 2018].
Bertrand, A. and Coibion, A. (2009). Shareholder Suits against the
Directors of a Company, against other Shareholders and against the
Company itself under Belgian Law. European Company and Financial Law
Review, 6(2-3).
Chiappetta, F. and Tombari, U. (2012). Perspectives on Group Corporate
Governance and European Company Law. European Company and
Financial Law Review, 9(3).
Choi, D., Shah, C. and Singh, V. (2016). Which team benefits from
collaboration?: Investigating collaborative information seeking using
personal and social contextual signals. Proceedings of the Association for
Information Science and Technology, 53(1), pp.1-6.
Drake, M., Quinn, P. and Thornock, J. (2017). Who Uses Financial
Statements? A Demographic Analysis of Financial Statement Downloads
from EDGAR. Accounting Horizons, 31(3), pp.55-68.
CONT.
Feng, N., Pevzner, M., Robertson, J. and Yahya-Zadeh, M. (2013). Comments by the Auditing
Standards Committee of the Auditing Section of the American Accounting Association on
International Standard on Auditing (ISA) 720 (Revised), The Auditor's Responsibilities Relating
to Other Information in Documents Containing or Accompanying Audited Financial Statements
and the Auditor's Report Thereon. Current Issues in Auditing, 7(2), pp.C1-C6.
Graham, L., Bedard, J. and Dutta, S. (2018). Practitioner Summary of "Managing Group Audit
Risk in a Multiple Component Audit Setting." Current Issues in Auditing.
Hirtle, B. (2014). Bank Holding Company Dividends and Repurchases during the Financial
Crisis. SSRN Electronic Journal.
Hope, J. (2015). Collaborate with registrar, financial aid to ensure compliance, meet enrollment
goals. Enrollment Management Report, 19(4), pp.6-7.
Hsu, J. (2018). Related Party Transactions, Parent Company Statements, and International
Financial Reporting Standards. SSRN Electronic Journal.
Kalinowski, J. (2010). Project management and presentation of information in financial
statements - company performance measurement or project performance
measurement. Comparative Economic Research, 13(3).
Khlif, H. and Samaha, K. (2013). Internal Control Quality, Egyptian Standards on Auditing and
External Audit Delays: Evidence from the Egyptian Stock Exchange. International Journal of
Auditing, 18(2), pp.139-154.
Feng, N., Pevzner, M., Robertson, J. and Yahya-Zadeh, M. (2013). Comments by the Auditing
Standards Committee of the Auditing Section of the American Accounting Association on
International Standard on Auditing (ISA) 720 (Revised), The Auditor's Responsibilities Relating
to Other Information in Documents Containing or Accompanying Audited Financial Statements
and the Auditor's Report Thereon. Current Issues in Auditing, 7(2), pp.C1-C6.
Graham, L., Bedard, J. and Dutta, S. (2018). Practitioner Summary of "Managing Group Audit
Risk in a Multiple Component Audit Setting." Current Issues in Auditing.
Hirtle, B. (2014). Bank Holding Company Dividends and Repurchases during the Financial
Crisis. SSRN Electronic Journal.
Hope, J. (2015). Collaborate with registrar, financial aid to ensure compliance, meet enrollment
goals. Enrollment Management Report, 19(4), pp.6-7.
Hsu, J. (2018). Related Party Transactions, Parent Company Statements, and International
Financial Reporting Standards. SSRN Electronic Journal.
Kalinowski, J. (2010). Project management and presentation of information in financial
statements - company performance measurement or project performance
measurement. Comparative Economic Research, 13(3).
Khlif, H. and Samaha, K. (2013). Internal Control Quality, Egyptian Standards on Auditing and
External Audit Delays: Evidence from the Egyptian Stock Exchange. International Journal of
Auditing, 18(2), pp.139-154.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
CONT.
Mahmud, S. (2010). Informed consent needs information. Indian Journal of
Medical Ethics, (3).
MohammadRezaei, F., Mohd-Saleh, N., Jaffar, R. and Hassan, M. (2015).
The Effects of Audit Market Liberalisation and Auditor Type on Audit
Opinions: The Iranian Experience. International Journal of Auditing, 20(1),
pp.87-100.
Liu, M. (2018). Did CEO’s Equity-Based Compensation Benefit Firms at All?
– Evidence From the Regime Before Adoption of Statement of Financial
Accounting Standards 123(R). International Journal of Accounting and
Financial Reporting, 8(2), p.1.
Ruh, A., Hanemann, T., Heldele, R., Piotter, V., Ritzhaupt-Kleissl, H.,
Hausselt, J., Hanemann, T., Heldele, R. and Hausselt, J. (2009).
Development of Two-Component Micropowder Injection Molding (2C
MicroPIM): Characteristics of Applicable Materials. International Journal of
Applied Ceramic Technology, 8(1), pp.194-202.
Ruhnke, K. and Schmidt, M. (2014). Misstatements in Financial
Statements: The Relationship between Inherent and Control Risk Factors
and Audit Adjustments. AUDITING: A Journal of Practice & Theory, 33(4),
Mahmud, S. (2010). Informed consent needs information. Indian Journal of
Medical Ethics, (3).
MohammadRezaei, F., Mohd-Saleh, N., Jaffar, R. and Hassan, M. (2015).
The Effects of Audit Market Liberalisation and Auditor Type on Audit
Opinions: The Iranian Experience. International Journal of Auditing, 20(1),
pp.87-100.
Liu, M. (2018). Did CEO’s Equity-Based Compensation Benefit Firms at All?
– Evidence From the Regime Before Adoption of Statement of Financial
Accounting Standards 123(R). International Journal of Accounting and
Financial Reporting, 8(2), p.1.
Ruh, A., Hanemann, T., Heldele, R., Piotter, V., Ritzhaupt-Kleissl, H.,
Hausselt, J., Hanemann, T., Heldele, R. and Hausselt, J. (2009).
Development of Two-Component Micropowder Injection Molding (2C
MicroPIM): Characteristics of Applicable Materials. International Journal of
Applied Ceramic Technology, 8(1), pp.194-202.
Ruhnke, K. and Schmidt, M. (2014). Misstatements in Financial
Statements: The Relationship between Inherent and Control Risk Factors
and Audit Adjustments. AUDITING: A Journal of Practice & Theory, 33(4),
CONT.
Rumniak, P. (2015). Consolidated reporting – beyond financial
statements. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu,
(388).
Ryan, S. (2015). Discussion of 'Were Information Intermediaries Sensitive
to the Financial Statement-Based Leading Indicators of Bank Distress Prior
to the Financial Crisis?'. SSRN Electronic Journal.
Sammut, J. (2012). Are Public Company Auditors Complicit in Financial
Statement Fraud?. SSRN Electronic Journal.
Seymour, M. and Geldenhuys, D. (2018). The impact of team dialogue
sessions on employee engagement in an information and communication
technology company. SA Journal of Human Resource Management, 16.
Singh, H., Woodliff, D., Sultana, N. and Newby, R. (2013). Additional
Evidence on the Relationship between an Internal Audit Function and
External Audit Fees in Australia. International Journal of Auditing, 18(1),
pp.27-39.
Stevens, R. (2014). The Consolidation of Assets and Liabilities within
Company Groups. The Dovenschmidt Quarterly, 2(3).
Rumniak, P. (2015). Consolidated reporting – beyond financial
statements. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu,
(388).
Ryan, S. (2015). Discussion of 'Were Information Intermediaries Sensitive
to the Financial Statement-Based Leading Indicators of Bank Distress Prior
to the Financial Crisis?'. SSRN Electronic Journal.
Sammut, J. (2012). Are Public Company Auditors Complicit in Financial
Statement Fraud?. SSRN Electronic Journal.
Seymour, M. and Geldenhuys, D. (2018). The impact of team dialogue
sessions on employee engagement in an information and communication
technology company. SA Journal of Human Resource Management, 16.
Singh, H., Woodliff, D., Sultana, N. and Newby, R. (2013). Additional
Evidence on the Relationship between an Internal Audit Function and
External Audit Fees in Australia. International Journal of Auditing, 18(1),
pp.27-39.
Stevens, R. (2014). The Consolidation of Assets and Liabilities within
Company Groups. The Dovenschmidt Quarterly, 2(3).
END
1 out of 16
Related Documents
Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
Unlock your academic potential
© 2024 | Zucol Services PVT LTD | All rights reserved.