Auditing Theory and Practice 1 1 Running Head: Auditing Theory and Practice

Running Head: Auditing Theory and Practice
Auditing Theory and Practice
Name of the Student
Name of the University
Author’s note
Table of Contents

1
Auditing Theory and Practice
Introduction.................................................................................................................................................1
Discussion...................................................................................................................................................2
Solution to question A.............................................................................................................................2
Solution to answer B...............................................................................................................................5
Solution to question C.............................................................................................................................7
Conclusion...................................................................................................................................................9
Reference list.............................................................................................................................................10
Introduction

2
Auditing Theory and Practice
Auditing Theory is a systematic and independent evaluation relating to books, accounts, statutory
records of a company. Stakeholders effectively examiner and improve the performance of risk
management and governance of the concerned matter. The report is focused on analyzing differences
between internal control and the internal control in financial reporting prospect. The significant difference
has been discussed with a focus of determining the variable in implementing the factors within the firm
on maintaining the format effectively. The primary beneficiaries aligned in concern to public reporting on
the purpose of internal control. The primary benefit has been discussed upon financial reporting,
installation of requirement highlighted on the report whether firms in Australia shall apply the similar
technique. Negative assurances in report focusing on the internal controls discussed on how the share
prices are going to affect the market. Analyzing the nature of deficiency attributed to potential effect
causing on share market price of the country. The types of defects associated with the negative impact of
share prices in the market discussed efficiently.
Discussion
Solution to question A
Internal control
The auditing standard is applied to entities who are associated primarily performs auditing of the
entity. Internal control in this aspect helps to review the performance of employees who are assigned to
this task. Determining the best criteria applicable in context of analyzing the common threats associated
in the market (Tidd and Bessant. 2018). Involving matters about engagement included within the content.
Associating with particular length of services concerning on participation in considering within the
company. Internal controls take care of safeguards which assigned as common threats by maintaining the
control over the quality of the reporting.
Auditing sectors involved in considering the framework which thrives on maintaining the
measures where internal controls required in analyzing how much the auditors are independent while
performing in public areas. There are possible threats regarding the independence which is associated in
the market; internal controls are allotted to measure the risk and to control it correctly. Complexity is
generalized in the factor which issues significant in regards to the size concerning the full range of
shareholders (Hyndman and Athanasopoulos. 2018). Focusing on expanding the quality regarding
procedures and rules imparted for fixing up the problem. The legislation is established in concern to the
appointments made in focusing on maintaining a positive platform to curb miscommunication between
the employees and shareholder of the company. Internal control is useful in context to aid the entity