Audit and Assurance in a Digital World
Added on 2020-02-05
10 Pages2782 Words40 Views
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Accounting1
Table of ContentsINTRODUCTION...........................................................................................................................31) FACTORS IDENTIFIED FOR INHERENT RISK AT FINANCIAL report level ANDSTRATEGIC BUSINESS RISK ASSESSMENT ..........................................................................32) FACTORS AFFECT INHERENT RISK ASSESSMENT AT BALANCE SHEET ACCOUNT..........................................................................................................................................................43) GOING CONCERN AND FACTORS THAT AFFECTS DECISION MAKING PROCESS. .6CONCLUSION................................................................................................................................7REFERENCE...................................................................................................................................92
INTRODUCTIONAccounting is a process of recording, summarizing and reporting financial information oforganization. However, true picture of company's monetary position on the basis of whichfurther decisions are made for business operations. The present report is based on understandingcase study of One. Tel organization for analyzing financial position as well determining differentkinds of risks. It is well known global telecommunication company of Sydney, Australia thatprovides GSM mobile phone and internet services worldwide. Through this assignment, differentrisk assessment factors including strategic business and inherent are to be introduced thatpresents financial statements' true performance of organization. Including this, various businessand inherent risks can be understood that affects financial performance of organization.Moreover, concept of going concern including different factors is to be expressed for presentingorganization's position. Thus, learners are able to understand concepts of accounting and auditingfor identifying actual terms of accounting and financial position of entity for financial plans andcontrolling over risks occur at workplace through this report.1) FACTORS IDENTIFIED FOR INHERENT RISK AT FINANCIALREPORT LEVEL AND STRATEGIC BUSINESS RISK ASSESSMENT Auditing is an approach in which all financial statements including profit and lossaccount, balance sheet are checked out critically. Due to misstatement in financial records of thecompany, various risks are occurred as inherent and strategic business risks (Bagshaw, 2013).There are various reasons behind this obtaining these risks such as wrong recording of primebooks that considers as bases for preparing financial statements and reports. Besides this, due tosuspecting theft and fraud, misstatement in accounts are created. Including this, businessstrategic risks are obtained for presenting economic position of organization and reasons behinderrors in financial statements. However, for presenting financial report level, critical evaluationon monetary performance of entity is created that affects further operations. In this regard, bothinherent risks at financial report level and strategic business risks' factors can be assessed asbelow:-Inherent risks at financial report level:- It is related with misstatement in financialstatements and external factors as rapid changes in inventories, expiry of patents and so on.3
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