Auditing and Assurance in Australia

Running head: AUDITING AND ASSURANCE IN AUSTRALIA
Auditing and assurance in Australia
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1AUDITING AND ASSURANCE IN AUSTRALIA
Executive summary
The task will focus on key assertion, substantive procedures for the same and importance of key
audit matters in context of 2 case studies provided. For each case the task will focus on the key
assertions involved with the items, substantive procedures to be followed for identified key
assertions and the matter that must be reported as key audit matters by the auditors. For each case
2b key assertions those are most significant will be found out.

2AUDITING AND ASSURANCE IN AUSTRALIA
Table of Contents
Introduction......................................................................................................................................3
Case of computing solutions Limited..............................................................................................3
(a) Key assertion for inventory...............................................................................................3
(b) Substantive audit procedure..............................................................................................4
(c) Communicating KAM as per the requirement ASA 701..................................................4
Case of Beautiful Hair Ltd...............................................................................................................5
(a) Key assertions for intellectual property............................................................................5
(b) Substantive audit procedure..............................................................................................6
(c) Communicating KAM as per the requirement ASA 701..................................................6
Conclusion and recommendation....................................................................................................7
Reference.........................................................................................................................................8