Auditing Solved Assignment

Added on - 21 Feb 2021

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Auditing
Table of ContentsINTRODUCTION................................................................................................................................3MAIN BODY.......................................................................................................................................3Question 1.............................................................................................................................................3a. Justification of company selected................................................................................................3b. Defining purpose and nature of external financial audits............................................................3c. Interpretation of social responsibilities of auditing firm with two example................................4Question 2.............................................................................................................................................4a. Two ethical issues........................................................................................................................4b. Three ethical principles at risk of breaching................................................................................5CONCLUSION....................................................................................................................................5REFERENCES....................................................................................................................................6
INTRODUCTIONThe term Auditing is a process of making cross examination of all the financials of the company fora respective financial period. The main motive behind conducting audit is to assess any error orfraud committed by the company in its business operations. With the help of Auditing process,auditor analyses accuracy and fairness of information as provided in the final accounts. The presentreport is based on PwC (PricewaterhouseCoopers) which is one of the Australia's biggest auditingas well as accounting firm. Report will define about nature and purpose of auditing firm withrelevant examples. Furthermore, explanation related to ethical issues and principles will be providedin line with applicable sections of Accounting Professional and Ethics Standards.MAIN BODYQuestion 1a. Justification of company selectedPwC (PricewaterhouseCoopers) is one of the multinational company delivering professionalservices with its business operations in 158 countries. It is having its headquarter in London and isserving across the world. Currently there are 250930 number of employees working in this firmhaving revenue of US$ 41.3 billion as on 2018 (PwC Wikipedia, 2019). PwC is engaged indifferent types of services including Assurance Advisory, Financial and Tax Advisory, ActuarialLegal frameworks, Tax Controversy, Management and Strategy consultation, Data and Analyticsetc.This firm works on three basic principles i.e. being good, bold and remain part of such phasewith the aim of becoming reliable in the accounting world. Also, another main objective is toremain ahead in the competitive world so as to pace with the society.b. Defining purpose and nature of external financial auditsExternal audit of financials is a process of conducting periodical, independent as well assystematic analysis of all the statements as prepared by the company for a specific accountingperiod. The process of external audit is undertaken by third party with some specific aim asmentioned under statue. PwC is undertaking external financial audit with main purpose of:1.Depicting about fairness, trustworthiness and reliability of all the information as provided bythe company related to their financial business transactions (Knechel and Salterio, 2016).2.PwC ensures each accounting record presented by the client company are containingcomplete information about business operations. Also, compliance has been made whilepreparation of final report in respect of all the applicable policies as laid down by theGenerally Accepted Accounting Principles.
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