Developing an Audit Program for a Publically Listed Company

Running head: DEVELOPING AN AUDIT PROGRAM FOR SELECTED PUBLICALLY
LISTED COMPANY
Developing an audit program for a selected publically listed company
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DEVELOPING AN AUDIT PROGRAM FOR SELECTED PUBLICALLY LISTED
COMPANY
Executive summary:
The current paper elucidates the development of an audit program of one of the companies
listed on ASX that is Huon Aquaculture group limited. Such program has been developed by
adopting the appropriate analytical procedures and the application of audit risk model. For the
purpose of analyzing the financial position, the auditor has employed the analytical
procedures of ratio analysis that assist them in evaluating the trends of several accounts. In
addition to this, the materiality has been computed by using the appropriate threshold and
judgment. For each of the accounts balances identified, the steps taken by the auditor and the
test of control designed have been outlined in later part of the paper.

DEVELOPING AN AUDIT PROGRAM FOR SELECTED PUBLICALLY LISTED
COMPANY
Table of Contents
Introduction:...............................................................................................................................4
Discussion:.................................................................................................................................4
Understanding the nature of business entity:.............................................................................4
Identification of key business risk:............................................................................................5
Identification of material accounts balances:.............................................................................7
Performing analytical procedures of the financial position statement:......................................8
Identification of material accounts balances and computation of materiality for planning
purposes:..................................................................................................................................11
Conclusion:..............................................................................................................................14
References list:.........................................................................................................................15

DEVELOPING AN AUDIT PROGRAM FOR SELECTED PUBLICALLY LISTED
COMPANY
Introduction:
The objective of the paper is to develop an audit program for the company that is
listed publically on ASX. For the development of audit program, it is required by the auditor
to conduct an analysis of the business risk faced by the entity and the nature of business. The
paper also demonstrates the application of audit risk model for assessing the control and
inherent risk faced by the company. The selected organization for which the audit program
would be developed is from the food beverage and tobacco sector that is Aquaculture group
limited is the family owned business and vertically integrated producer of salmon in Australia
(investors.huonaqua.com.au, 2019). The operations of company comprised of all the aspects
of supply chain from marine farming, hatcheries, processing to marketing and sales. Huon is
also engaged in selling a range of value added products with the focus on producing high
quality fish using the methodology exhibiting excellent characteristics. Development of audit
program of the company has been done by employing analytical and substantive procedures
along with developing sampling plan for each of the material account balances that have been
identified (Anderson & Fleming, 2016).
Discussion:
Understanding the nature of business entity:
Huon Aquaculture group focuses on growing the wholesale business with the
increased focus on the retail market resulting from the supply chain agreements. It is a fully
vertically integrated company and is engaged in everything from breeding brood stock for the
production of eggs to the processing of salmon on the plate. The objective of company is to
expanding the production for tapping into the growing appetite for salmon worldwide and
thereby meeting the demand of local. Huon has been fortunate enough for farm in the healthy
environment of Tasmania. The organization is looking for the expansion of offering the farm