Auditing and Assurance Services | Research Paper

Running head: AUDITING AND ASSURANCE SERVICES
Auditing and Assurance Services
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Executive Summary...............................................................................................3
2. Problem Statement...................................................................................................3
3. Methodology.............................................................................................................4
3.1 Introduction.........................................................................................................4
3.2 Outline of Research Method...............................................................................4
3.3 Research Onion..................................................................................................4
3.4 Research Philosophy..........................................................................................5
3.5 Research Approach............................................................................................6
3.6 Research Design................................................................................................6
3.7 Process of Data Collection..................................................................................6
3.8 Data Analysis Plan..............................................................................................7
4. Findings....................................................................................................................7
4.1 Identification and Assessment of Risk of Material Misstatement.......................7
4.2 Planning of Materiality and Performing the Audit...............................................8
4.3 Response of the Auditor to Risk Assessed........................................................8
4.4 Going Concern....................................................................................................9
4.5 Opinion Forming and Reporting on a Financial Report....................................10
4.6Modification of the Opinion in the Independent Auditor’s Report......................10
4.7 Emphasis on Matter Paragraph and Other Matter Paragraph..........................11
4.8 Code of Ethics for Professional Accountants...................................................12
4.9 Key Audit Matters..............................................................................................12
4.10 Auditor’s Responsibilities relating to Fraud....................................................13
5. Implications of Findings..........................................................................................14
5.1 Ethics and Culture.............................................................................................14
5.2 Inherent and Control Risks...............................................................................14
5.3 Internal Control.................................................................................................15

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5.4 Auditor’s reporting Obligations..........................................................................16
5.5 Auditor’s Independence, Duties and Continuity................................................16
5.6 Fraud and Misappropriates...............................................................................17
5.7 Whistle-blowing.................................................................................................18
5.8 Key Audit Matter...............................................................................................19
5.9 Business Risk....................................................................................................20
6. Conclusion and Recommendations........................................................................21
6.1 Conclusion........................................................................................................21
3.2 Recommendations............................................................................................22
7. References and Bibliography..............................................................................25

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1. Executive Summary
The research paper appropriately deals with the quality of reporting framework which
is used by the business of JB hi Fi ltd for the current period. The research paper
would be dealing with whether the business has included relevant key audit matters
in the financial report or not. The quality of the independent auditor’s report is matter
of question on which the research would be conducted. The analysis would be
showing the methodology which is utilized for the business for collecting appropriate
data and the same is analysed for identifying key findings from the research. The
research would be listing out key findings of the research on JB hi Fi ltd for the
period and ensure that appropriate reporting framework is used for representing key
financial information regarding the business.
2. Problem Statement
The main aim behind the preparation of this case study report is to address
the relationship as well as impact of different relevant auditing standards in related to
different aspects of auditing. The objective of this whole report is the assessment of
the true and fair standing of the financial reports of a high profile international
organization with the aim to criticize the auditor’s opinion provided in the
independent audit report through the consideration of the key audit matters
considered by the auditors of the organization. In order to proceed with this report,
JB Hi-Fi Limited is taken into consideration which is considered as one of the
leading retailers of electronic goods in Australia. The presence of the business
operations of JB Hi-Fi can be seen in the regions of Australian and New Zealand.
The major products of the company are consumer electronic goods, major
appliances and small appliances. The main problem statement of this study is to
discuss about the impact and relationship of the auditing standards in context of
different auditing theories, concepts, regulations, practices and others. Another
crucial aspect of this report is the risk of material misstatement and the determination
of the fact that the auditors of the selected company has been able in determining
such risk of material misstatements. It also taken into consideration the examination
of the going concern position of the company along with determining the fact that
whether the company has done any modification to the audit opinion that the
auditors have issued. This paper undertakes the analysis of the related auditing

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standards along with its impacts on the financial reports of the companies in order to
show true and fair value.
3. Methodology
3.1 Introduction
In order to collect appropriate information regarding the quality of audit
procedures which is applied on a reporting framework that the business
organizations use. The annual report for the business is the main source of
information which is considered. In addition to this, the financial information of JB hi
Fi for past years is also considered. The research would be relying more on
qualitative information considering the external sources for information as well as
internal sources would be analysed. The methodology of the research is an
important part of the study as different methods, approaches and philosophy which is
used for the research is discussed in this part. The information which is associated
with the key audit matters would be analysed from the auditor’s report which is also
involved in the annual report of the companies.
3.2 Outline of Research Method
The plan of the research methodology would be showing the approach which
is undertaken by the researcher for accumulating information which are essential for
drawing out conclusions from the research. The research method which is followed
for the research would be based on the nature of the topic and would also be
depending on the information which is available for the research. The research
would be applying concepts of epistemology and positivism approach for undertaking
the research process. The research paper would be following a descriptive
framework so that proper explanation is available in case of future reference. In
addition to this, the research paper would be following a deductive approach for
analysing information and testing out theories and different hypothesis.
3.3 Research Onion
The research onion is considered to be an integral part of the research
process and the same provides detailed explanation regarding the methods which
are conducted for research and also the different frameworks which is used for the
research(Mayer, 2015). The research onion would be explaining strategies and
procedures which are applied by the researcher for deriving appropriate conclusion

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in respect for the research which is conducted. The research onion is quite helpful in
planning the research process and the same includes important steps such as data
collection and formulating appropriate design for the research work. The researcher
has the option of choosing qualitative, quantitative or mixed approach for the
research and the approach which is adopted needs to be incorporated in the
research onion.
3.4 Research Philosophy
The research philosophy takes into consideration the approaches which is
utilized by the researcher in order to collect, process and interpret the data so that
appropriate conclusion can be drawn from the research. The researcher has different
options available to him for conducting the overall research process. It is to be noted
that the research philosophy is useful for collecting information and the same also
sets the tone for the entire research. The research philosophy which is adopted by
the researcher also depends on the nature of the topic which is selected for the
research in the first place. The research methodology would be addressing key belief
and approaches which the researcher intends to follow for the purpose of
accumulating information and identify key findings (Saunders et al., 2015). This
research paper is based on quality of reporting framework which is utilized by JB hi
Fi ltd and the key audit matters which are recognised in the annual report of the
business. Further the research paper would be focusing on the quality of reporting
for the business and whether the information which is included in showing true and
fair. In addition to this, non-financial aspects which are also included in the reporting
framework would be considered such as code of ethics, key audit matters and risks
of the business would be considered for the purpose of the research and appropriate
qualitative data would be collected for the same as well. The approach which is
undertaken in the research paper would be selected in such a manner so that
maximum results can be obtained from the same. As per the nature of the topic and
wide range of arguments and theories which are available for analysis, positivism
approach would be most appropriate in this case(O’Gorman, Lochrie& Watson,
2014). Positivism theory approach allows a business to appropriately identify
theories and practices which can helping the researcher to get results. In addition to
this, the analysis would also be using statistical as well theoretical approach for
collecting appropriate information for the purpose of the research.