AUDITING AND ASSURANCE.

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

AUDITING AND ASSURANCE1
Executive Summary
The purpose of this report is to examine as well as analyze the case of two different
companies. In the research, work to find the key assertions at risk that is associated with
inventory and intellectual property. Further, the study states the processes that the auditor
follows for each risk ascertained and ASA 701 is mentioned as communicating key audit
matters for auditor in their report. At last, the study on both cases reflects a fair analyzing of
the company's position as well as the auditor's responsibility. This reflects an authentic and
transparent view of the company. Hence, it creates confidence in the investors for the auditors
and their finalized reports.

AUDITING AND ASSURANCE2
Table of Contents
Introduction....................................................................................................................3
Answer to Question 1.....................................................................................................4
(a) The assertion at risk related to the Company’s Inventory................................4
(b) Substantive Audit procedures for both the risk identified................................5
(c) The requirement of ASA 701 Communicating key audit matters....................6
Answer to Question 2.....................................................................................................7
(a) The assertion at risk related to the company's intellectual property intangible
asset ...........................................................................................7
(b) Substantive Audit procedures for both the risk identified................................8
(c) Communicating Key Audit Matters in the Auditor's Report..........................10
Conclusion....................................................................................................................11
References....................................................................................................................12

AUDITING AND ASSURANCE3
Introduction
For every business enterprises, it becomes a necessity to maintain their position more
positively. So that this can help the businesses to build up trust and creates an understanding
in the minds of the consumers. For keeping that kind of image of their company in the
market, the business must make some effort in respect to the information they disclose in the
required reports so that they can create transparency (Carson, Fargher and Zhang, 2016).
Auditing and Assurance services assist those companies so that they can find the risk
associated with them or any misconduct by the company so that they can rectify it.
The report based on two case studies and the company mentioned there that is
Computing Solutions Ltd. and Shimmers Pvy Ltd. The purpose of this report making is to
consider, evaluate and find the risks assertion or problems for each of the company through
proper auditing. The evaluation is done for making this report, ascertain the risk assertion that
each company faces in respect to inventory along with the other case relates to intellectual
property intangible asset. Along with that describes the substantive audit practice for both the
risk identified (Legislation.gov.au, 2019). Further, the study discusses the ASA 701
communicating key audit matters that confirms the authentication of the auditor’s report with
the recent changes and development by the IAASB. It reflects the responsibilities of an
auditor with better transparency and all the important audit matters necessary to conduct for
an accurate and fair report. (Hochman, Ayal and Ariely, 2014) The unbiased report will help
the company as well as the investors to overcome the problems and take a proper decision
concerning the growth of the organization and to earn a profit.