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Auditing, Assurance and Services 10 Auditing, Assurance and Services

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Added on  2020-03-28

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AUDITING, ASSURANCE AND SERVICES AUDITING, ASSURANCE AND SERVICES 10 Auditing, Assurance and Services Author Note: Introduction 2 ASA 701 Communicating Key Audit Matters in the Independent Auditor’s Report 2 Collapse of ABC Learning 4 Five year ban slapped on ABC Learning centres 2013). ABC Learning auditor 5 Issues 6 Consideration regarding going concern 7 Communication with the management and other governing units 7 Recommendations and Conclusion 8 Reference List 10 Introduction This study deals with researching on topic and preparing a report on

Auditing, Assurance and Services 10 Auditing, Assurance and Services

   Added on 2020-03-28

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Running head: AUDITING, ASSURANCE AND SERVICESAuditing, Assurance and ServicesName of the Student:Name of the University:Author Note:
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2AUDITING, ASSURANCE AND SERVICESTable of ContentsIntroduction......................................................................................................................................2ASA 701 Communicating Key Audit Matters in the Independent Auditor’s Report......................2Collapse of ABC Learning..............................................................................................................4Five year ban slapped on ABC learning auditor..............................................................................5Issues................................................................................................................................................6Consideration regarding going concern...........................................................................................7Communication with the management and other governing units..................................................7Recommendations and Conclusion..................................................................................................8Reference List................................................................................................................................10
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3AUDITING, ASSURANCE AND SERVICESIntroduction This study deals with researching on topic and preparing a report on new auditingstandards ASA 701 (Allen and Ramanna 2013). This auditing standard is prepared for gettingbetter understanding of concepts on Communicating Key audit matters in the IndependentAuditor Report. The new auditing standard was developed in the wake of global financial crisis.This was developed so that shareholders should have better and full understanding of thecompanies where they plan to invest in. Even, investors had requested for earlier warnings ofpotential issues that takes place with respect to an entity skill to maintain as going concern thatresults in the revision of ASA 570 (Zadek, Evans and Pruzan 2013). The current segmentresearch on auditing issues that led to the expansion of new Auditing standard ASA 701Communicating key audit matters in the Independent Auditor Report. The study briefly explainabout the key audit matters that need to be revealed in the audit report to the members of ABCLearning Centres if the new auditing standards ASA 701 has practical in the period that led tocollapse of ABC Learning Centres as well as evaluating the usefulness of ASA 701. ABCLearning Centres is one of the Australian companies that were once a principal provider of earlychildhood education services. This company was listed in Australian Stock Exchange and basedin and across Australia (Eilifsen et al. 2013). The company went into voluntarily liquidation inthe year 2008 and purchased by Goodstart Limited by the year 2009. ASA 701 Communicating Key Audit Matters in the Independent Auditor’s Report The Auditing Standard ASA 701 explains matters relating to Communicating key auditmatters in the Independent Auditor Report. In this section, it explain with the compulsion as well
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4AUDITING, ASSURANCE AND SERVICESas accountability of the auditors to correspond effectively regarding audit matters that are ofmain significance in the report of auditors (Fontaine, Letaifa and Herda 2013). The AuditingStandards mainly addresses verdict of the auditors in regard to the nature of dealings that shouldbe communicated in the audit report and compiled in the final report as well. The main purposeof communication procedure is to improve in the valuation of report that is prepared by theauditors in order to provide clarity about the performance of audit activities (William, Gloverand Prawitt 2016). It is important to communicate the matter to the shareholders as they hadinvested money in the company and they should be communicated additional information so thatthey have proper understanding of the important matters in relation to financial report of anycompany. It is important to communicate important matters to the users so that they can properlyengage with the managerial actions as well as charged by Governance in order to build relationwith entity and management as a whole (Zadek, Evans and Pruzan 2013). It is the accountability of the auditor to issue an opinion on the financial statement oftrade enterprise and carry out audit performance where the auditor has the responsibly with theengagement terms of the audit (William, Glover and Prawitt 2016). It is the liability of theauditor to meet the terms of the audit engagements while signing the engagement letter wherethey agree that they will carry on the mission and compliance with the audit standard. The mainmission objectives should be taken into contemplation in order to decide variety of financialreports for assessing the structure of any business enterprise (Koh, Rajgopal, and Srinivasan2013).
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