Assignment about Auditing and Assurance in Australia

Running head: AUDITING AND ASSURANCE IN AUSTRALIA
Auditing and assurance in Australia
Name of the student
Name of the university
Student ID
Author note

1AUDITING AND ASSURANCE IN AUSTRALIA
Table of Contents
Section 1..........................................................................................................................................2
Level of materiality......................................................................................................................2
Materiality – quantitative estimate..............................................................................................2
Rational of choosing materiality level.........................................................................................3
Significant items under consideration of audit............................................................................3
Section 2..........................................................................................................................................4
Section 3..........................................................................................................................................6
Cash flow statement review.........................................................................................................6
Audit report review......................................................................................................................7
Reference.........................................................................................................................................8

2AUDITING AND ASSURANCE IN AUSTRALIA
Section 1
Level of materiality
As per AUS 202 aim of audit is to provide opinion on the financial statement of the
client. Opinions are provided on the basis of whether the data provided through financial
statements are free from the material misstatement, fraud and error. Planning materiality is the
misstatement amount that is set by the auditors at their audit planning state on the basis of
materiality to the financial statements. Various factors including qualitative, quantitative
information and reliability that can be placed on the data provided by management are
considered while establishing the materiality level (Auasb.gov.au, 2019). Generally materiality is
computed through considering different bases as follows –
 1% to 5% of sales revenue
 5% to 10% of net profit
 1% to 2% of total assets
 2% to 5% of shareholder’s equity (Byrnes et al., 2015).
Materiality – quantitative estimate
Considering the above bases, materiality level for Bendigo and Adelaide bank for the
year ended 30th June 2018 will be as follows –