Auditing and Assurance Services

Running head: AUDITING AND ASSURANCE SERVICES
Auditing and Assurance Services
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1AUDITING AND ASSURANCE SERVICES
Executive Summary
At the time such financial statements are developed, the auditors often make some sort of
assertions for their audit customers. The current report focused on certain assertions employed
for the given companies from the auditor’s perception in a way that the key audit matters are
ascertained. It was gathered that as per the requirement of this specific assertion, the audit clients
are anticipated to record each of their equity, assets along with liabilities at cost after subtraction
of accumulated depreciations and for this reason, accurate depreciation rate application is
conducted. Moreover, in addressing key audit matters ensuring conformation of the fact that
suitable compliance must be maintained by the organization with all the necessary accounting
guidelines and policies

2AUDITING AND ASSURANCE SERVICES
Table of Contents
Introduction......................................................................................................................................2
Answer 1: Risk and Material Misstatement of Advnced Computer Solutions Limited..................3
i. Major Risk Assertions with Respct to Inventory.....................................................................3
ii. Substansive Processes of Audit................................................................................................4
iii. Key Audit Matters Related with ASA 701...............................................................................5
Answer 2: Case of Green Machine Limited....................................................................................7
i. Two Key Assertions at Risk.....................................................................................................7
ii. Two Substansive Audir Processes............................................................................................8
iii. ASA 701 Requirement for Communicating Key Audit Matters..............................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

3AUDITING AND ASSURANCE SERVICES
Introduction
Almost all auditors are deemed to be some obligations that are evident in investigating
and evaluating the financial statements of companies so that it might be made certain that they do
not encompass any type of material misstatements due to any error or frauds. The stakeholders
related with these companies in order to analyses the fairness and honesty within companies
financial statements. At the time such financial statements are developed, the auditors often
make some sort of assertions for their audit customers. Such assertions signify implicit or
explicit depictions along with claims that are used by the management for developing financial
reports concerned with suitability of several elements along with financial statements
disclosures.
Several auditing assertions are employed in consideration to property, plant and
equipment, inventory and others which encompass cut off, valuation, occurrence, accuracy,
existence along with completeness. At the time consumers financial statements are audited, the
auditors must consider to investigate the audit assertions in a way that fairness of used judgments
and assumptions used by management to develop financial statements might be verified. Relied
on these investigations, the key audit matters must be determined in case the risks have
significance for taking audit measures. The current report might focus on certain assertions
employed for the given companies from the auditor’s perception in a way that the key audit
matters are ascertained.