Auditing: Steps, Risks, Internal Controls and Reporting

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

1AUDITING
Table of Contents
Answer to Question 1......................................................................................................................2
Answer to Question 2......................................................................................................................3
Answer to Question 3......................................................................................................................5
Answer to Question 4......................................................................................................................6
References and Bibliography...........................................................................................................7

2AUDITING
Answer to Question 1
The issue that has been presented in the question is that as an audit senior with Rogers &
Brown the particular task of the auditing the proceedings of Reliable Printers Limited for the
year ended 30 June 2015. Furthermore, the steps of audit that have been asked in the question are
as follows:
 Initial agreements with the client – the initial agreements with the client include the audit
engagement letter. The engagement letter includes the specifications that have been
agreed by the auditor and the client. There are no details that have been disclosed in the
provided case study in regards to the audit engagement letter. However, it has been
mentioned in the case study that the auditing procedure previously had belonged to the
small audit firm Jones & Associates (William, Glover and Prawitt 2016).
 Planning of the audit – the planning of the audit involves the following of the certain
steps like the collection of the documents, preparation of the audit plan, discussion of the
plan with the client, conducting the required field work, drafting of the report and finally
setting up of the closed meeting with the client. The documents that have been requested
for the purpose of audit relate to the annual reports and the financial statements that
reflect the financial position of a corporate entity. Moreover, the different financial
document like the receipts and the invoice copies that have been incurred on the basis of
the financial transactions carried out by the corporate entity whose books are being
audited are also the potential documents that are required for the purpose of auditing. In
case of the selected firm of Reliable Printers Limited, the audit documents that have been
disclosed are the tax invoice, dispatch note in regards to the different financial
transactions that have been incurred by the firm. Moreover, the audit plan that will be
designed by the auditor for the purpose of evaluating the accounting statements of the
Reliable Printers Limited is that the different accounts like the purchase and the inventory
account, the receivables account, the revenue account, the cash receipts, the fixed assets
and other financial particulars that have been included in the financial report of the
corporate entity. Next, the proceedings will have to be discussed with the auditor and the
fieldwork has to be conducted (William, Glover and Prawitt 2016).