Auditing and Assurance

Running head: Auditing and Assurance
Auditing and Assurance
Name of the Student
Name of the University
Author Note

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Auditing and Assurance
Executive Summary
The report includes details of the auditing process in the company. It show how the audit
help the company to analysis the financial statement of the company and give opinion in
regards with the true and fair view of the company. Lastly the report contain details of the
company internal control and inherent risk of the company and how the company can
overcome those risk it also contain the planning materiality of the company and also have the
calculation taking the total asset as the base for the calculation of the planning materiality.

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Auditing and Assurance
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Overview of the Company.....................................................................................................3
Threats to auditor Independence as per APES110.................................................................3
Safeguard which can be taken to remove the threats.............................................................4
Risk Assessment – Inherent risk............................................................................................4
Risk Assessment – Control risk.............................................................................................6
Planning Materiality...............................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Auditing and Assurance
Introduction
Audit is the process in which the individual check the financial statement of the
company and then gives its opinion regarding whether the financial statements are showing
true and fair view or not (Abu Naser, Al Shobaki & Ammar 2017) . It is done so that the
financial user can know whether the financial statement which is been made by the company
is free from any material misstatement and the user can easily invest in the same . As the
public company involves huge amount of public cash so to overcome the loss of the public
money this procedure have been introduced as this show the real position of the company and
also help the investors and other financial users to take their economic decision in regards
with the finance position of the company (Agyei-Mensah 2016). The process of the audit is
been carried out by the individual termed as auditor and it is the one who carry the audit
process in the company and give its independent view upon the financial statement of the
company that whether the financial statement are showing true and fair view or not.
Discussion
Overview of the Company
The assignment is based upon the company named DecaSport. It is a listed company
in Australia. The products in which the company deals is sport shoes, it deals with all kind of
luxury and high-tech sport shoes. It current purchase its product from the suppliers of china
and sale it products in Australia and it do its business by having a low margin of profit.
Threats to auditor Independence as per APES110
Self-Interest threat – This threat signify the financial interest which the auditor have
with the company as it able to get a good amount of the money from the client so this can
affect the auditor independence as the auditor may found out that the by giving them correct
opinion can affect their financial relationship with the company and to stop that the auditor