Auditing in Company Financial Statement

Running head: Auditing
Auditing
Name of the Student
Name of the University
Author Note

1
Auditing
Executive Summary
The assignment show about the auditing in the company and the materiality concept which is
there in the financial statement of the company. It also show about the planning materiality
and risk assessment procedure which is been carried by the auditor in regards of the financial
statement of the company.

2
Auditing
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Overview of the Company.....................................................................................................3
Materiality in the Company financial statement....................................................................4
Planning Materiality...............................................................................................................7
Risk Assessment in Audit......................................................................................................7
Conclusion................................................................................................................................10
Reference..................................................................................................................................11

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Auditing
Introduction
The process of the inspection and evaluation of the financial statement of the
company is known as auditing. This process is to be carried upon the financial statement of
the company so that it can be know that the company had comply with all the rules and
regulation while preparing the financial statement of the company1. The process of auditing is
can be carried by both the employee of the company and the external auditor of the company.
The internal audit is been carried by the employer of the company it is been done so that it
can able to inspect the strategies of the management so that it can able to know the mistake
which are there in the strategy and help the company to overcome the mistake in the
strategy2. External auditor are the one who carry it audit process in the company as it from
external source so it can able to give an independent opinion on the financial statement of the
company. It have to carry some procedure in the company business so that it can able to
know how the company is performing its activities and it will able to judge the risk which is
been associated in the company so that the auditor is able to know the materiality and
misstatement in the financial statement and able to carry the audit process as related to it in
the company financial statement3. The report show about the Konekt Limited which is listed
in Australia, it contain an details of the concept of materiality and also show about the 5
account which are there in the company having material misstatement of the company. It also
1 Brusca, Isabel, et al., eds. Public sector accounting and auditing in Europe: The challenge
of harmonization. Springer, 2016.
2 Cannon, Nathan H., and Jean C. Bedard. "Auditing challenging fair value measurements:
Evidence from the field." The Accounting Review 92.4 (2016): 81-114.
3 Chiu, Victoria, Qi Liu, and Miklos A. Vasarhelyi. "The Development and Intellectual
Structure of Continuous Auditing Research 1." Continuous Auditing: Theory and
Application. Emerald Publishing Limited, 2018. 53-85