Auditing and Assurance

Running head: AUDITING AND ASSURANCE
Auditing and assurance
Name of the student
Name of the university
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AUDITING AND ASSURANCE1
Table of Contents
Requirement 1............................................................................................................................2
Requirement 2............................................................................................................................2
Requirement 3............................................................................................................................3
Requirement 4............................................................................................................................4
Requirement 5............................................................................................................................5
Reference....................................................................................................................................6
Appendix....................................................................................................................................7

AUDITING AND ASSURANCE2
Requirement 1
Analytical procedures are the kind of evidence that is applied during the audit
procedures. It indicates the probable issues associated with financial records of the client that
can be analysed more thoroughly. In accordance with Para A14 of ASA315, analytical
procedures carried out as the procedure for risk assessment may recognise different aspects of
the entity. In this regard the auditors is not aware and is in the position to help in analysing
risks related to misstatement for providing basis for designing as well as implementing
responses for assessing the risks (Auasb.gov.au 2020). Analytical procedure is carried out as
the procedures for assessing the risks that includes financial as well as non-financial
information. For instance, relationship among sales and square footage of selling space or
goods sold or volumes. In addition, analytical procedures assist in identifying existence of
unusual events or transactions and ratios, amounts as well as trend that may indicate the
matters those have implication of audit. Unexpected or unusual relationship those are
recognized may assist auditors to recognise risks related to material misstatement specifically
the risks associated with material misstatement occurring due to frauds (Auasb.gov.au 2020).
Requirement 2
Professional scepticism is the attitude that includes questioning mind, being alerts for
the condition that may signify possible misstatement owing to fraud, error and the critical
assessment regarding audit evidence. In other words, professional scepticism is required
while performing the effective audits in the under PCAOB (Accaglobal.com 2020 )
Professional scepticism plays crucial role in audit and considered as the integral part
for the skill set of the auditor. It enables appropriate exercise for professional judgment,
specifically regarding the decisions in context of –