Auditing: Role, Process and Key Business Risks for TPG Telecom Limited

Auditing 1
Auditing

Auditing 2
Executive summary
The term is auditing is considered as an essential function that is carried out by the organizations
to identify the issues in financial statements and operational activities to ensure the functioning,
effectiveness and efficiency of the operational activities. Audit can be conducted in two forms
namely internal audit and external audit. The internal audit is carried out by the management and
external audit is carried out by appointing eternal party to analyze the financial operational
performance of the organization. In this report, TPG telecom limited is used to understand the
audit process and its role in analyzing the organizational performance. During the audit
procedure, it is analyzed that there are several business risks both in internal and external
environment that can influence the financial performance of an organization. It is essential for
the auditor to identify these risks and suggest an appropriate way to overcome these risks for
better performance. In addition, the auditors must follow a systematic audit procedure with
analyzing entire material accounts to identify the errors and fraud in the financial records. In this
concern, the auditors are recommended to have proper focus both on internal and external factors
that are influencing to business operations to attain the objectives of audit in professional
manner.

Auditing 3
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
About TPG telecom limited.........................................................................................................................5
Key business risks for TPG telecom limited................................................................................................5
Application of Audit Risk Model................................................................................................................7
Analytical procedure...................................................................................................................................9
Different material account balances of TPG telecom limited....................................................................12
Audit procedure using substantive approach.............................................................................................13
Sampling plan............................................................................................................................................16
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19

Auditing 4
Introduction
Auditing is an essential process for the organizations to analyze the financial performance and
effective business decisions. The successful organizations are using auditing as an exclusive
process of identifying the issues and misstatement in the financial records. The aim of this report
is to outline the role of auditing in an organization. In this concern, the report is describing
different audit steps and key business risks for an organization. TPG telecom limited is
considering to make understanding the about the concept of auditing in practical manner. TPG
telecom limited is a listed in ASX and forcing the telecommunication industry of Australia. In
addition, the report is also determining substantial tests of balances of different assets and
liabilities of the company with use of substantive approach of auditing. The report is also
analyzing the materiality items and carrying out the analytical procedures of TPG telecom
limited with considering different ratios and metrics. Auditing process is also plays and essential
role in attaining the outcomes of auditing in professional manner so that the report is also
discussing auditing process for TPG telecom limited in effective manner. Finally, the report is
describing a sampling plan to complete the audit process in successful manner.