Auditing, Assurance & Services ACC707

Added on -2020-02-23

| ACC707| 15 pages| 3428 words| 47 views

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AUDITING, ASSURANCE & SERVICES ACC7071
ContentsIntroduction................................................................................................................................3Introduction of New Auditing standard: ASA701 Communicating Key Audit Matters............4Background of ABC Learning Centre........................................................................................6Key Audit Matters that shall be reported in the Auditors report of ABC Learning Centre.......7Rise in Competition................................................................................................................7Financial Discrepancies not reported to Management...........................................................8Personal usage of company`s fund not reported...................................................................10New Government Policies that impacted Going Concern Concept.....................................11Usefulness of ASA701.............................................................................................................12Conclusion................................................................................................................................13References................................................................................................................................142
IntroductionAuditing and assurance services are regarded as one of the important services, as with thehelp of these services the stakeholders of every business organization can trust on businessorganization. In this report of audit and assurance, an auditor is appointed by the organizationto verify and check the accounts books of the organization. In addition to this, the job of anauditor is to represent the audit report to stakeholder and to the management of theorganization, with the help of audit report the analysis can be done such as key findingsduring the audit, the opinion of the auditor, key audit matters and other importantinformation. Shareholder and the investors of the organisation depend on the audit reportwhile making the decision regarding further investments. Besides this discussion is done on the findings presented in the auditing report, which leads tothe insolvency of the center. In this report, the discussion is done on the ASA701Communicating Key Audit Matters. Besides this report, an analysis is being done on failureor insolvency of ABC Learning center. 3
Introduction of New Auditing standard: ASA701 Communicating Key Audit MattersIn this report it has been noticed that there are several issues has been faced by the bigAustralian companies in the recent past as a result of this is failure or insolvency. In thisfailure there is a big company that has been fallen down and it concluded as execute likeABC Learning Centre, HIH Insurance, One Tel Phone Company, etc. there is the anotherreason for fallen down of these companies i.e. internal irregularities in business, financialissue is an another reason and the big reason is loop holes in audit and assuranceservices[ CITATION Joh151 \l 1033 ]. Due to this Australian auditing standard board has takenthe few steps for alternation so that loopholes can be blocked in existing auditing standard.By this changes the new auditing standards ASA701 Communicating Key Audit Matters isintroduced. Key Audit matters term defines the important matters which are recognized bythe auditors from their high experience and with the way of judgment method. In addition,this these are the most important matters in which auditors have to pay more attention to thismatters while performing the audit procedure[ CITATION Kne16 \l 1033 ]. Some of theprocedure have to follow for the results related to audit matters of the business organization:Important to identify the risk by using the method of ASA 315 this method is used in thoseaspects or areas where the risks have been taken by the higher level of management oforganization.Important areas and factors where the management decision is required and also theaccounting method is required for the Key audit matter[ CITATION Kne16 \l 1033 ]. The matterswhere is involvement of auditors judgment is necessary is known as key audit matters. As a result of this audit standard board has issued new auditing standards control and to getthe real face of the company in the market. In addition to this, the confidence of theshareholder and the investors were at risk of the business and the government has given theorder to protect and provide simplicity in the market. The government has introduced the newaudit act ASA 701[ CITATION Oba15 \l 1033 ]. The main work of AUASB is to introduce thenew act and raise the standard of auditing show that people can take the interest and focus onthe business and can produce the high-quality business. With the help of ASA701 has easedthe requirements and also help in providing the material and the applications forcommunicating on this key audit matters that can be used further in independent auditreports. The important factors of ASA701 are given below:4

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