Auditing and Assurance Service

Running head: AUDITING AND ASSURANCE SERVICE
Auditing and Assurance Service
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Author’s Note

1AUDITING AND ASSURANCE SERVICE
Table of Contents
Asset Accounts at Risk....................................................................................................................2
Identification of an Expense of the Business...................................................................................6
Reference.........................................................................................................................................8

2AUDITING AND ASSURANCE SERVICE
Asset Accounts at Risk
1.
Asset Account
2(a).
Explanation
2(b).
Key
Assertion
2(c).
Substantive Test of Details
Property, Plant
and Equipment
which is
valued at $
10,291.8
million
The valuation of property, plant
and equipment for the business
of AusNet Ltd for the year of
2018 is under the risk of being
materially overvalued. The
annual report of the company
for the year 2018 shows that the
value of the asset has increased
significantly in comparison to
value which is shown for
previous year (Wang &
Fargher, 2017). In addition to
this, it is also to be noted that
the same is also included in key
audit matters of the business
which shows that the item is of
material nature and may be
materially misstated. The
Valuation
ASA 315
The auditor needs to check
the valuation of property,
plant and equipment and the
same can be traced through
the supplier invoices when
the asset was actually
purchased (Bagshaw and
Selwood, 2014). The auditor
needs to apply the procedure
of verification in order to
assess that the treatments
which are shown in the
financial statement are
appropriate or not. In case of
expenses of capital nature,
the same needs to be added
to the value of property,
plant and equipment. The