Auditing and Assurance

Running head: Auditing and Assurance
Auditing and Assurance
Name of the Student
Name of the University
Author Note

1
Audit and Assurance
Table of Contents
Question No 1............................................................................................................................3
Introduction............................................................................................................................3
Discussion..............................................................................................................................3
Company overview and its industry background...................................................................3
Going Concern Concept.........................................................................................................4
Financial Analysis of the company........................................................................................5
Risk of Material Misstatement...............................................................................................5
Assertions of each account mentioned above........................................................................6
Conclusion..............................................................................................................................7
Question No 2............................................................................................................................7
Introduction............................................................................................................................7
Discussion..............................................................................................................................7
Conclusion..............................................................................................................................9
Question No 3..........................................................................................................................10
PART 1.................................................................................................................................10
PART 2.................................................................................................................................10
References................................................................................................................................11
Appendix..................................................................................................................................13

2
Audit and Assurance

3
Audit and Assurance
Question No 1
Introduction
Auditing is technique from which inspection and examination of the financial report is
done. It is a process from which the auditor checks that the company financial statement are
showing true and fair view or not (Bell, Causholli & Knechel 2015). This process let the
financial user to know the market value of firm and also help to identify the current market
position of the company. Auditing is done by both employee of the company and the external
person. If the audit process is been carried out by the internal employee than it is termed as
internal audit, in this the employee check the internal management which the company has
and help them in regards of various problem which found in the internal management and
help them to minimize the internal control weakness (Brown, Preiato & Tarca 2014).. The
audit which is done by the external person is called statutory audit and the person who carry
such audit is been termed as auditor. The auditor do the audit process in the company and
give its opinion regarding the financial statement that it is showing true and fair view or not.
The financial user check the auditor opinion before making any decision regarding the
company so the auditor repot serves as a base for the financial user and help them to decide
whether to do the business with the company or not (Christensen et al., 2016).
Discussion
Company overview and background of the industry
This report deals with the company Daily Logistics Limited. It based upon logistics,
cargo and transportation, it was created in the year 2010 and the company was formed by
merging two small companies. The company business is it deal in providing transport
services of the items like iron ore, forestry and mineral products. It also some additional
services such as transportation of farming products, gas, oil and even lithium. It also had