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Auditing assurance and compliance - HI6026

   

Added on  2020-03-02

8 Pages1161 Words38 Views
By student name ProfessorUniversityDate: 20 August 2017.
Auditing assurance and compliance - HI6026_1
1ContentsQuestion no 1..............................................................................2Question no 2..............................................................................4Question no 3..............................................................................6Refrences....................................................................................81 | P a g e
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2Question no 1Audit is the post facto checking of the books of accounts and financial statements of the entity,whether profit oriented or loss making. The purpose is to confirm the stakeholders and themanagement that whether it is showing the unbiased and true status of the business and whether it canbe relied upon, it is not done with the view to find out the frauds and errors. It can be done in multipleways including substantive and analytical audit procedures. Substantive audit procedures are inherentand are the overall checking of the books of accounts using sales checking from invoices, purchasechecking, checking of incomes and expenses from the relevant supporting, and verification of assets andliabilities shown in the statement of accounts. In case these are not enough to expression an opinion onthe viability of the financial statements, auditors resort to the analytical audit procedures like keyfinancial ratio analysis, balance sheet review, trend analysis, bar charts, comparison of the actual fromthe budget and the forecasted figures, establishing the reason of the deviations, etc.[ CITATION Rai16 \l1033 ] In addition, these preliminary audit procedures guide the auditor in planning further and settingthe nature, extent and timing of the audit procedures to be set further. Besides, this entire auditor alsoneeds to check on the control procedures maintained in the entity like internal financial controls, whichhave assumed huge importance since the adoption of the IFRS and Sarbanes Oxley Act. If the level ofinternal control are weak in the entity, they need to perform more audit procedures as the risks aremultiplied, whereas if the internal control is strongly build in and there is a segregation of the duties,less risks are there and hence, less checking will suffice the cause[ CITATION Jon17 \l 1033 ]. In the givencase, DIPL, a printing press is getting its accounts audited by the new firm that is why the checking of theopening balances is become as necessary. The profitability, debt management and liquidity ratios havebeen analysed to check the financial position of the entity. In the absence of the industry trends, thecomparison in the basis opf industry has been ignored. Given below is the analysis table with the results.[ CITATION DeZ16 \l 1033 ]2 | P a g e
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