Audit Strategies and Planning Memorandum

Running head: Audit Strategies and Planning Memorandum
Audit Strategies and Planning Memorandum
Name of the Student
Name of the University
Author Note

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Audit Strategies and Planning Memorandum
Executive Summary
The report deals with audit of the financial statement, it help the users to know how and why
an audit is done. It takes all the aspects which are required in the process of audit. The
report deals with the company name ABC Learning and show the auditor different audit
perspective related to the company. It show how the auditor should check the financial
books of the company and how it should treat the material misstatement in the financial
statement. Lastly the report concludes different trend of ABC Learning such as trend
analysis, common size, dupont analysis and Beneish M-Score model. It help the company to
know different trends of the company.

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Audit Strategies and Planning Memorandum
Table of Contents
Introduction............................................................................................................................ 3
Discussion.............................................................................................................................. 3
Overview of the company...................................................................................................3
Company Developments....................................................................................................3
Overall Analytical Review...................................................................................................4
Audit scope and Approach.................................................................................................6
Audit Planning Process...................................................................................................6
Scope of Work.................................................................................................................6
Control Environment Assessment...................................................................................6
IT General Controls Assessment.....................................................................................7
Responsibilities Related to Fraud....................................................................................7
Internal audit................................................................................................................... 7
Confirmation of Independence........................................................................................8
Materiality........................................................................................................................... 8
Risk Assessment and Areas of Audit Focus.......................................................................8
Audit Engagement and Reporting.......................................................................................9
Outline of Fees................................................................................................................... 9
Team of audit..................................................................................................................... 9
Conclusion........................................................................................................................... 10
REFRENCES....................................................................................................................... 11
Appendix.............................................................................................................................. 13

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Audit Strategies and Planning Memorandum
Introduction
Audit is the systematic examination or inception of the books of accounts, statutory
books and other important document related to the financial statement of the company. It is
done to know whether the company financial statements are showing the real value of asset
and liabilities (MINUTTI‐MEZA 2013). As financial statements is a base from which financial
user decide whether to do business with the company or not, so the financial statement
should be true and no material misstatements should be there in the books.
Audit is done by a professional who is termed as auditor. Auditor is the one who
perform the audit procedure in the company and comment whether the company is showing
true and fair view or not. It is done by many methods which the auditor think reasonable for
the company, the audit procedure is depend upon the company and each company audit is
done by different methods (Griffith 2015). Auditor can be of two type internal auditor and
external auditor, internal auditor are the one who are the employee of the company and they
do audit of the internal control and internal system of the company where as external auditor
are the outsider of the company who do audit of financial books of the firm.
Discussion
Overview of the company
The report is based on the company named ABC Learning. ABC Learning was one of
the largest early childhood education provider in Australia. It was founded in 1988 in
Ashgrove. It was a child care chains which was providing education to children. The purpose
of the company was to provide education from six weeks up to pre-school age. In some
centre they also provide before school, after school and vacation care services. It also own a
training centre which trained it child care staff.