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Report on Auditing and Assurance in Australia

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Added on  2020-04-07

Report on Auditing and Assurance in Australia

   Added on 2020-04-07

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Running head: AUDITING AND ASSURANCE IN AUSTRALIAAuditing and assuranceName of the studentStudent IDName of the universityAuthor note
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1AUDITING AND ASSURANCE IN AUSTRALIATable of ContentsExecutive summary....................................................................................................................2Answer 1....................................................................................................................................3(A)Accounting heads analysis..........................................................................................3(B)Ratio analysis for business risk assessment.................................................................6Answer 2....................................................................................................................................7(A)System of internal control.................................................................................................7(B)Internal control weakness for trade receivables and sales...........................................9Reference..................................................................................................................................11
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2AUDITING AND ASSURANCE IN AUSTRALIAExecutive summaryGPSA is an organization that was formed in 1992 and is occupied with the improvement andresearch of therapeutic hardware innovations, circulation and produce of medicinal types ofgear and speculation of the surplus store under the property market. The long time auditor ofthe company, Miller Yates Howarth was drawn closer to report in regards to the insidecontrol arrangement of GPSA, examination of the major budgetary proportions with respectto business hazard and inward control framework that can be connected to enhance thecontrol framework and limit the danger of extortion, mistake and error.
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3AUDITING AND ASSURANCE IN AUSTRALIAAnswer 1(A)Accounting heads analysisAccount receivable Account – Receivable is the sum that is receivable by the organization with respect toprovide the products and services. Consequently, the record related with the recordreceivable is the credit sales account. The ratio of account receivable is computed bymeasuring the net sales on credit for the normal receivable time. Analysis – it has been investigated from the given contextual analysis that every oneof the exercises related with receivables are performed by officials assigned forundertaking the receivables. For instance, the client may return any purchased productowing to any fault in the product, in the wake of taking note of down the reason ofreturn and finish of documentation, the credit note for the client is raised by the tradereceivable assistant. Further, the posting of journal and additionally receipts from theindebted individuals are passed on to him, who set up the bank store slip. Hence theassociated risk is regarded as high (Knechel & Salterio, 2016).. Risk related to audit – as every one of the exercises identified with the receivables areperformed by the trade receivable assistant, there associated a risk that the receivablemight be misused by the agent or the receivables may recorded at lesser sum. Audit steps for risk minimization – to lessen the dangers related with debt claim ofGPSA different exercises related with the receivables must be isolated amongdifferent representatives
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