Auditing Standards and Corporate Ethics

Auditing
Theory and
Practice

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By student name
Professor
Date: 19 September, 2017.
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Executive Summary
Auditing is an important procedure that helps in judging the effectiveness of the accounts that are
prepared by the companies. The companies appoint auditors who are trained in this field and can
help the company in conducting the audit efficiently and at the end of it they issue an audit report
that will state their opinion on the financial statement of the company. There are many auditing
standards that been formed to help the auditors in this process. In the following report we will
discuss one such standard known as the ASA 701 Communicating Key Audit Matters in the
Independent Auditor’s Report. The small details and the overall analysis of this standard will be
done to get an insight on its formation and how it is helpful to the auditors..
Contents
Introduction...........................................................................................4
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Analysis................................................................................................................... 5
Downfall of the ABC Learning Centre.........................................................................5
Features of the ASA 701..................................................................................................8
Effect of the ASA 701 on the ABC crisis........................................................................9
Conclusion ......................................................................................................................10
Recommendations..........................................................................................................10
References...................................................................................................................... 11
Introduction
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