Auditing Theory and Practice - Report
Added on 2021-06-17
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Aconex LtdExecutive SummaryThe working of an auditor should be in tune with the rules laid down by the audit regulations because it provides the best scope for the organization and the clients. Hence, it imperative that the process and measures must be in direct linkage to the regulations. The auditor should ensure that the operations are in tune with the prescribed standards so that the business does not face any issue and attain the best results. In this report, Aconex Limited has been selectedfor the purpose of study and audit plan has been undertaken considering the company Aconex. The report initiates the audit plan followed by the understanding of the client and identification of accounts. Thereafter, other parts relate to the concept of materiality. The report even states the skills that are necessary by an auditor to compute the necessary figures so that the evaluation can be done with ease.2
Aconex LtdContents1.Introduction...................................................................................................................................32.Key information.............................................................................................................................3a)Gaining knowledge and understanding the behaviour of clients...................................................3b)Assessment of Significant account.................................................................................................4c)Planning materiality.......................................................................................................................5d)Assessment of facts that might go wrong......................................................................................8Conclusion...........................................................................................................................................10References...........................................................................................................................................113
Aconex Ltd1.IntroductionOut firm was appointed as an external auditor for the audit of the financial report dates 30 June 2017. The audit fee appears at $5,50,000 and the same has been highlighted in the Engagement Letter that is in tune with the ASA 210 Audit Engagement. The audit report is prepared following the Corporation Act 2001that needs the company to appoint auditors so that audit can be conducted and a review of the financial report can happen as per the standards of auditing. The main aim of the report is to assure the financial report of Aconex Limited whether the financial report is free from material misstatement or not (Aconex, 2017). Further, another aim is to trace whether the financial report is prepared keeping into consideration the authentic view of the matters.It is imperative for an auditor to perform the task in an effective manner. The auditor must refer to the auditing standards that are ASA 300 Audit planning, this helps the audit in the manner that the engagement occurs in an effective mechanism. It is vital that the entity, as well as business environment, should be known to evaluate the procedure of audit so that an effective result can be attained (Hoffelder, 2012). In this report, the significant accounts that are exposed to risk are being discussed. This is done considering the comprehensive income, financial position statement, and notes to the financial statements (Aconex, 2017). The initial step by the auditor should be to trace that the companies have no element of risk in the previous financial statement so that the current audit is free from danger. Secondly, the new auditor must provide a letter to the management stating about the terms and conditions needed for the evaluation of the audit report (Niemi & Sundgren, 2012). As per auditing standard 210, a friendly connection must be present between the management and the auditor of the company. 2.Key informationa)Gaining knowledge and understanding the behaviour of clientsIt should be made clear that the organization's management and the auditor should work in the same manner and according to the same terms and conditions of the audit plan which will lead to smooth conduction of the operating activities of a business. It is also necessary for the auditor to work in accordance to the accounting standard 220 which clearly state that the auditor is liable to assess all the processes and methods that are being carried out by a 4
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