Audit Program for Ridley Corporation Limited - ATP

ATP 1
Audit theory and practice

ATP 2
Executive summary
The purpose of the report is to identify auditing as a control function that is carried out at the
organizations to assure the proper functioning, operational efficiency and effectiveness. There
are two of audits that are carried out at the organizations one is internal audit carried out by the
management and other is external audit where management appoints external party for verifying
accuracy in financial and operational performance. This report is based on the development of
the audit program for Ridley Corporation Limited. It is ASX listed company that dealing in the
feeds and dairy products along with poultry, pig beef and pet food. The report identified the key
business risks such as operational and financial risks which involve currency fluctuations,
commodity, liquidity risk and interest rate risks. The other operational risks are cyclical
fluctuations, domestic grain harvest, risk of regional consideration and customer concentration
and so on. It is also identified that the company is complying with the accounting standards and
no material misstatements are identified during the commencement of the audit program.

ATP 3
Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Key risks associated with Ridley Corporation Limited...................................................................5
Operational risks..........................................................................................................................5
Financial risks..............................................................................................................................6
Audit risk model..............................................................................................................................7
Analytical procedures for the financial statements..........................................................................7
Calculation of the planning materiality of Ridley Corporation Limited.........................................9
Sampling plan for material account balances to be tested.............................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

ATP 4
Introduction
This report will be focused towards the analysis of the Ridley Corporation Limited operating in
the Food, beverage and tobacco industry. The report will also analyse the key business risks
associated with the company focusing in Inherent and control risk. It will evaluate risks in three
categories such as low, medium and high risk. The next part of the report will analyse the
financial position of the company for the past three years with the use of the financial ratios to
measure financial performance of the company. This will also help to identify the various
account balance that are considered as ‘material’ for Ridley Corporation and will provided the
reasons for the materiality of the various accounts. Thereafter, material accounts were selected
that consists of five liabilities and assets. Finally, sampling plan is developed for complete the
audit process of each material account.