Auditing and Assurance Services

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

1AUDITING AND ASSURANCE SERVICES
Table of Contents
Answer to Question 1:................................................................................................................2
Answer to Question 2:................................................................................................................2
Answer to Question 3:................................................................................................................3
Answer to Question 4:................................................................................................................4
Answer to Question 5:................................................................................................................5
Answer to Question 6:................................................................................................................5
References:.................................................................................................................................7

2AUDITING AND ASSURANCE SERVICES
Answer to Question 1:
Purpose of external financial audits:
The external financial audits are conducted with the intent to verify that the yearly
accounts provide a reasonable and genuine image of the accounts of an organisation and that
the utilisation of assets is made according to the items and points illustrated in the
constitution.
Nature of external financial audits:
External financial audits are developed with the intent to form a finite opportunity list
for benefitting an organisation and threats to be avoided (Carson, Fargher and Zhang 2016).
Thus, external audits are not intended to form an exhaustive list of all probable factors that
could affect the business; instead it aims to identify significant variables offering actionable
responses.
Answer to Question 2:
In Australia, the relevant legislator/body that looks after the operations of the audit
firms is “Australian Securities and Investments Commission (ASIC)”. There have been
significant audit regulation activities in Australia since the initiation of improved regulatory
requirements for auditors in July 2004. This body is accountable to administer the needs of
the Corporations Act 2001, since it is associated with auditor independence (Asic.gov.au
2019). With the help of audit oversight activities, ASIC assists in maintaining and increasing
the standard of conduct in the profession of audit. Although these activities seem to be
compliance focus and educational, enforcement action could be undertaken, in which
considerable non-compliance is detected. Along with ASIC, the “Auditor General Act 1997”