Auditing: Advice on Appropriate Auditing Assertions and Internal Control for DHL Assignment

Solution to question 1:0
Running head: Auditing
Auditing
Name of the Student-
Name of the University-
Author’s note-

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Solution to question 1:
Memorandum
To: Jek Porkins( Audit Senior, DHL assignment)
From: Sam Gomez ( Audit Manager, Samway Baker Fitzgerald )
Topic: Advice of appropriate auditing assertions.
Dear Jek Porkins,
The memorandum is constructed in the context of enhancing to the case of Dudley Health
Limited (DHL) which possesses substitute departments such as Neville’s and it contain of
reserved hospital in Tamworth. However, here is a key scam is recognized in the Pellegrino
shores under DHL. The deception happened in the procedure of senior staff members yield secret
payments from people in courtesy to decrease their payments. Furthermore, the elder staff
member also consumes an admittance to the subdivision catalog in which all occupants’ personal
facts are recorded. In this, she also finished numerous rackets including hypothetical to update
room place changes for inhabitants in argument of money (Suomi & Järvinen, 2013). Along, she
also decreases the resident’s age of halt in command to suggestion of equal worth to other
resident in favor of huge amount. This scam, gets \exposed by the associated worker who
eavesdrops the high-ranking staff members conversing the cheat with a resident.
In context to the fraud at Pellegrino, it can be stated that status risk could be the business
danger that leaves a damaging impress over the kindness of firm. The character hazard has a
great impact inside which folks observe the undesirable about the firm which openly unfair their

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deals or service consumption (Grant et al., 2014). Similarly, the case of Pallegrino obviously
portrayed the deception or false activity by the oldest staff associate. This case can consequence
in repute risk as individual notices the negative appearance about the Pallegrino hospital
facilities in the procedure that they care high dues for their amenities. These type of immoral
repetition result the firm in undesirable manner. However, this untrue activity can develop a
cause of character harm and it is signified that when goodwill of the firm tumbledown then it
became problematic for them to live for lengthier duration.
In context to explanation of department connected of Pallegrino shores, it dismisses to be
recognized that swindle give increase to the problematic in the explanation checking. This occur
in the procedure that due to older staff associate perform the deception work in period to present
the explanation or gather large quantity from populaces tend to generate the changes in version
(Kim & Lennon, 2013). It gives rise to unprincipled repetition in the reviewing report. Therefore,
the lowly auditing consequence leaves a negative influence on the firm doppelgänger for long
duration. So, it can be stated that Pallegrino shores con case most prospective to touch the
business maneuver or reputation on adverse manner.
Answer 2
(A)
As per the circumstance of St Neville’s, it is recognized that DHL internal audit element is
involved by swapping from Neville current patient revenue system to the DHL system. Here are
the stipulations of DHL system are as follows:-

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 There is great number of complaints from newly squared patients that the payment
invoice is line up to the medical fund and pensioner grant rates (Knechel & Salterio,
2016).
 There is a record of past patients which can be updated with the re-visit of patients.
 The system considered some patient fee invoices where for no motive they have payable
patients at a lower room rate than grasp on the rates folder.
Thus, these are some requirement of revenue system but it also includes numerous types of
problematic. So, if Neville switch towards DHL system then they incline to look lot of problem
due to DHL system comprise various grievances and complications.
In respect to this case, the regulator audit risk can be happened. In this audit, the mechanism
risk includes the inquiry in the correctness of quantity stated by firm worker in scheme. It also
combined the documentation of mistakes or responsibilities in journalism. So, this kind of audit
risk is much appropriate for the circumstance when Neville change to the DHL payment scheme
as this system comprise lots of problems and faults due to which patients have grumbles regards
to add the moreover custodies in their bill. This disgruntles them to superior degree (Cao et al.,
2015). So, the instance clearly reflects the mechanism audit risk in respect to low observing of
system disappointment to offer superiority customer amenities in the form of accurate calculation
of services and bid quick and worthy offering to them.
The control jeopardy major instigated by the poor planning or strategies and improper
internal control (Mack et al., 2018). These parts similarly arise in the DHL payment system in
which director does not brand proper preparation and plan to serve the correct bills to patients