Auditing & Assurance: Evaluating Audit Procedure at Trunkey Creek Wines (TCW)

Running head: AUDITING & ASSURANCE
Auditing & Assurance
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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AUDITING & ASSURANCE
Executive Summary
The main aspects of the study have evaluated the different types of the audit concerns in TCW.
In order to answer the various issues related to audit the first section of the study will evaluate
the ratios and additional information associated with the four accounts listed by your audit
partner, John Richards. This part of the study will also consider the any appropriate audit
measures which needs to be implemented for the audit risks. This will recommend the audit
measures with account of concern, analysis and audit risk. The second part of the study will
further consider the additional risk pertaining to the overall operations of the business. The latter
section of the study will provide explanation in the internal controls and also recommend the
effective risk control measures for the associated test of controls. This will be stated by points
grouped under weakness and provide justification for the same. The overall concerns for TCW
was recognised as per Controls Overridden by the CEO and management, Overreliance on
Detective Controls vs. Preventative Controls, Segregation of the duties and Informal and Formal
Controls related to the accounts payable and purchases.

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AUDITING & ASSURANCE
Table of Contents
Introduction......................................................................................................................................3
Question 1A.....................................................................................................................................3
Question 1B.....................................................................................................................................6
Question 2A.....................................................................................................................................8
Question 2B...................................................................................................................................10
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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AUDITING & ASSURANCE
Introduction
The discourse of the report is aimed to evaluate the audit procedure at Trunkey Creek
Wines (TCW). As per the given information the internal control functions at TCW is related to
define the system of internal control and create greater awareness of controls in the company.
These are mainly related to the factors such as enforcing effective internal controls. The
management staff at Trunkey Creek Wines (TCW) is depicted to receive bonus as per the target
ratios. This will further include the monthly sales volumes, variance of actual to budget
departmental overheads and profit before interest and tax. The board of the company further
aims to take active interest pertaining to the performance and also request for the explanations as
per the variance from the monthly budgets.
The first section of the study will evaluate the ratios and additional information
associated with the four accounts listed by your audit partner, John Richards. This part of the
study will also consider the any appropriate audit measures which needs to be implemented for
the audit risks. This will recommend the audit measures with account of concern, analysis and
audit risk. The second part of the study will further consider the additional risk pertaining to the
overall operations of the business. The latter section of the study will provide explanation in the
internal controls and also recommend the effective risk control measures for the associated test
of controls. This will be stated by points grouped under weakness and provide justification for
the same.
Question 1A
The consideration of the risks of audit are considered with audit measures with account of
concern, analysis and audit risk.