Auditing and Assurance

Running head: AUDITING AND ASSURANCE
Auditing and assurance
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1AUDITING AND ASSURANCE
Executive summary
Purpose of the report is to highlight the issues associated to inventories of Computing Solutions
Ltd and intellectual property recognition of Beautiful Hair Ltd. The task will also deal with the
key assertion involved with the said accounts and the substantive audit procedures that can be
performed against those key assertions. Based on the identified key assertion it will be concluded
whether all the matters will be identified as Key audit matter for both the entities.

2AUDITING AND ASSURANCE
Table of Contents
Introduction......................................................................................................................................3
Case 1 – Computing Solutions Ltd..................................................................................................3
(a) Recognition and explanation of key assertion related to inventory..................................3
(b) Recognition and description of substantive audit procedure............................................4
(c) Explanation of requirement of ASA 701..........................................................................4
Case 2 – Beautiful Hair Ltd.............................................................................................................5
(a) Recognition and explanation of major assertion related to intellectual property.............5
(b) Identification and description of substantive audit procedure..........................................6
(c) Explanation of requirement of ASA 701..........................................................................6
Conclusion and recommendation....................................................................................................6
Reference.........................................................................................................................................8