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Auditing and Assurance | Report

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Added on  2020-03-23

Auditing and Assurance | Report

   Added on 2020-03-23

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Running Head: AUDITING AND ASSURANCE1Auditing and AssuranceName:Institution:Course Code:
Auditing and Assurance | Report_1
AUDITING AND ASSURANCE2Executive Summary.The purpose of this report was to critically brief various stems involved in audit process to an audit team. The senior auditor also calculated financial ratios relating to AFT Pharmaceuticals Limited. This is one of the companies listed under Australian Security Exchange with ASX code ACW and GICS industry group of pharmaceuticals, biotechnology and life science. Therefore the team of auditors aimed at analyzing annual reports of the company so as to scrutinize the newclient’s audit.
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AUDITING AND ASSURANCE3Table of ContentsExecutive Summary.....................................................................................................................................2Table of Contents........................................................................................................................................3Introduction.................................................................................................................................................4Steps in planning the new clients audit.......................................................................................................4Acceptance of client and performance of initial audit planning..........................................................4Understanding the client’s business and industry...............................................................................6Assessing client’s business risk............................................................................................................7Performing preliminary analytical procedures....................................................................................8Australian Security Exchange listed company under analysis......................................................................9The financial entries of AFT Pharmaceuticals Limited as at 31st December 2016................................9Audit tests.................................................................................................................................................10Conclusion.................................................................................................................................................11References.................................................................................................................................................12
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AUDITING AND ASSURANCE4Auditing and AssuranceIntroduction.Auditing and assurance is a very critical aspect in development and accountability of any company or a firm. It is a key aspect in management of all undertakings in achieving a complete firm in terms of transparency and accountability. The purpose of this report is to critically analyze key steps in planning the new client of one of the company listed under Australian security exchange. According to the standards set by auditing and assurance requirements, financial records and data need to be fully scrutinized in order to assess the viability and vulnerability of a particular company in terms of financial management and resource allocations. This is typically done by calculation of financial ratios of a company. The present and most recent financial recorded documented in annual reports are very useful in audit process. As a senior auditor in the firm of NY partners aim at forming a team of auditors to assess the new client’s audit by use research analysis and computation of financial ratios. This report aim at critically analyzing AFT Pharmaceuticals Limited(Chopra, 2012). This is one of the companies listed under Australian Security Exchange with ASX code ACW and GICS industry group of pharmaceuticals, biotechnology and life science. Therefore my team of auditors aims at analyzing annual reports of this company so as to scrutinize the new client’s audit.Steps in planning the new clients audit.Typically, there are four main steps in planning the new client’s audit. These procedures will form a clear base of an audit process in relation to client’s expectations for his or her company or firm for this case. These steps include acceptance of client and performance of initialaudit process, understanding the business and industry of the client, assessment of client businessrisk and performance of preliminaries analytical procedures. Auditing process involves audit planning, control and recording (ISO 300) that will form basis of these four steps.Acceptance of client and performance of initial audit planning.This is a very crucial procedure in audit planning. The main reason for this step involves accepting the client need for conducting auditing process. It is a fact that many companies limit the auditing of their companies for no apparent reasons. They fear auditing their companies as if they are anticipating some irregular and illegal undertakings within their firms that need not be
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