D-MERTON's Accountant and Audit Partner Responsibilities

The assignment provided details about the roles and responsibilities of accountants and audit partners in D-MERTON. It includes tasks such as maintaining up-to-date knowledge for company standards, policies, and regulations, developing innovative ideas to extend services for clients, attending meetings with clients as per industry trends, and ensuring effective functioning at workplace. The document also references various sources related to accounting, auditing, and finance.

FALSE ASSURANCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
QUESTIONS...................................................................................................................................1
1. Provide brief introduction for these three persons..................................................................1
2. Responsibilities of TYSL accountants in relation to prevent and detect frauds and errors in
D-MERTON................................................................................................................................2
3. Three ethical which may affect independence of TYSL accountants to conduct audit of D-
MERTON and how to reduce it..................................................................................................2
4. Two inherent risks and how to control in by TYSL accountants to respond each risk in
planning and audit.......................................................................................................................3
5. How cancellation the product and system affect to D-MERTON's financial position...........4
6. Do you believe that Sarah Hancock has exercised her duty as the care audit partner ...........5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
False assurance determines film drama which created to facilitate in discussion about
accountants, auditors and company directors. In this aspect, people act when they face difficult
situation (Buchanan, 2014). Present study based on D-MERTON in which different types of
financial performances has been explains with generic themes and setting. For gaining insight
knowledge of the company, it covers responsibilities of TYSL accountants to prevent and detect
frauds.
QUESTIONS
1. Provide brief introduction for these three persons
Perso
n A
He is Alex Frayn who Chief Financial Officer. As the CFO
of D-MERTON, he is responsible for the every activity of
the enterprise which performed in the past, present and
future as well. Furthermore, Alex also taking responsibility
for future financial situation and risk as well. His duty is to
predict best and effective economy strategy that forecasting
to make prediction for successful operations within the
future. In addition to this, he is also responsible towards
stakeholders due to many decisions based on the financial
information which accurate so that it require in accuracy.
Perso
n B
She is Liz Harris who is positioned on Audit Committee
chair. She is responsible in D-MERTON for oversight of
financial reporting and disclose them. Among all board
members, she responsible for making on regular basic
reports.
Perso
n C
She is Sarah Hancock who is audit partner and responsible
for signing and approving the firm audit report. She works
on financial statement of client and manages it. The audit
partners are responsible to all the clients and employees
those admitted and made financial investment.
1

2. Responsibilities of TYSL accountants in relation to prevent and detect frauds and errors in D-
MERTON
The main cause of each issue is requires presenting its origin with identifying errors and
frauds. It makes strong likelihood to start operations within the organisation. In this way, internal
auditors and control managers play important role (Murphy, McAlea and Mullins, 2016). Main
question that arisises to control and help in discharging errors and frauds, there are several
elements considered in TYSL accountants. They are as follows:
 Implement and strengthen physical control in the business: Main importance of
implementing physical control within the fraud prevention overlooked with many
physical barriers. Internal fraud takes place due to people who internally do not take any
responsibilities (Ferran and Ho, 2014). In order to prevent fraud, TYSL accountants has
responsibilities in D-MERTON to discover all relevant information at workplace.
Therefore, it will help to solve business issues in significantly.
 Develop preventive and detective internal controls: Another responsibility of TYSL
accountant is prevention and control through development of effective functions in D-
MERTON.
 Introduce fraud awareness programs in enterprise: Another responsibility of TYSL
accountant is to prevent and control frauds in D-MERTON. Therefore, it will help in
identifying errors that might create big issues in the business (Dai and Vasarhelyi, 2017).
Auditing standards: Following are auditing standards implemented in the D-MERTON'S:
 ASA 100: This preamble to AUASB standards
 ASA 101: It preamble to the Australian auditing standards
 ASA 102: Compliance with ethical requirement to perform audits. In addition to this,
reviews and other Assurance engagement included in D-MERTON'S.
3. Three ethical which may affect independence of TYSL accountants to conduct audit of D-
MERTON and how to reduce it
Ethics defines as the primary field which could be applied in business and also important
part of it, human, study of moral values, judgements towards accountancy. It can be included in
2

professional ethics which could be expanding government group, professional organisation and
organisations (Harvey and McCrohan, 2017). Ethics are taught in the accounting courses in
higher educational institute and companies training programmes as well. Because of the diverse
range of accountancy services and recent corporate collapse, D-MERTON ethical standards are
accepted in the accounting profession. Government and organisation develop regulations and
remedies for improving ethics in the accounting profession.
Nature of the work carried by the accountant and auditors which requires high level of
ethics. Shareholders and other people of the company use this information to make informed
decision about investment (Peters and Romi, 2014). They rely on the opinion of TYSL
accountants who prepare financial statements. However, it becomes difficult to control
accountants and auditors and ensure that they consider public interest without being biased. to
consists interest of public. Further, because of the accounting scandals in businesses, critics have
been stated which need to be responded.
In order to solve this issue, new regulations need to be made for scandals that include for
corporate law economic reform. Improper leadership and ill-culture create threat and problem to
lack of competence of professional body support (Couture, 2015). In D-MERTON, TYSL
accountant require implementing principles and rules to develop international accounting
standards. They can also report to many stakeholders on several concerns in usage of rules based
accounting. In addition to this, they have to include understandability, relevance, materiality,
reliability and comparability. These practices never make international standards in the world
domain.
Regulatory compliance becoming increasing continuously and it is very complex to reach
of regulators continuous to expand.
Regulatory compliance and reporting:
 Regulatory compliance with the financial and non financial reporting requirement.
 Risk effectively managed with regulatory risk.
 Corporate governance is strong.
3

Auditing and assurance board of standards: It is the independent, statutory agency who
responsible to enhance standards and guidance for auditors.
Australian accounting standards: It makes standards of accounting for private, public and non
profit sectors. They are also participates in respect to formulate international standards of
accounting.
Australian financial security authority: It provides improved financial outcomes for several
people such as customers, business and community. Security laws, regulations and personal
insolvency develop effectively.
4. Two inherent risks and how to control in by TYSL accountants to respond each risk in
planning and audit
With the help of standards, concept will be develop that the auditor required to
understand of business risk to extent relevant to the financial statements. In audit plan of D-
MERTON, TYSL accountants facing issue in making decisions, programs and procedures.
Following are two main risk take place in business:
 Financial risk: There is high financial risk because standards are continuously changed
and implementation of IT system also needed high cost (Buchanan, 2014). Therefore, it is
the biggest issue which is faced by TYSL accountants in D-MERTON. In order to solve
this issue, new investment need to be implemented by the company. Therefore, it will
help in making decisions and respond towards problem in systematic way. In this risk,
TYSL accountants need to arrange fund to reduce financial risk from the business unit.
Therefore, it will be profitable to supply relevant things at workplace. There are different
types of financial risks, can be occurs at workplace of chosen business. They are as
follows:
4

 Competitors: Competitors performances also create impact on the organisation to
develop effective functions and operations. In this aspect, TYSL accountants need to
assess their competitors’ performances to enhance their own outcomes. In this manner,
they can easily control risk and issues which could impact the organisation. TYSL
accountant need to focus on analysis of competitors’ outcomes which helps to cater
relevant information for D-MERTON.
5. How cancellation the product and system affect to D-MERTON's financial position
When product cancellation in the D-MERTON, it will affects to its system and financial
position in negative aspect. This is because, at workplace of chosen business high cost
implemented to implement this product. Therefore, financial position hampers specific revenue
sources. Cash flow statements also analyse actual level of cash flowing into and out from the
enterprise. As per the income statement, cash-flow statement measures activity over the period
(Ferran and Ho, 2014). However, fluctuation in operating, investing and financing cash reflect on
the balance sheet from period to period. In respect to change in the cash also needs to be taken
from external sources. Uses of this includes sales of common stock, changes in short and long-
term loans, etc.
5
Illustration 1: Financial risk
(Source: Financial Risk and Its Types, 2017)

In addition to this, balance sheet also provide summary that make changes in profits and
revenue due to decreasing or increasing of assets and liabilities. In order to generate more profits,
each product offer to consumers. With regard to supply products, demand and design plans
related and based on the factors of consumer preferences (Harvey and McCrohan, 2017). With
cancellation of products, D-MERTON also loss opportunity for sales. These circumstances have
impact on the group performances and financial position.
6. Do you believe that Sarah Hancock has exercised her duty as the care audit partner
Yes, I believe that Sarah Hancock exercised her responsibility as the care audit partner.
She is responsible for auditing and making financial report to send it to client. She makes
financial statements for clients and managers (Buchanan, 2014). In this way, she performs
several responsibilities and duties which are explained below:
 Plan and manage audit engagement: In respect to ascertain effective functions, Sarah
Hancock focusing on plan and managing audit programs in D-MERTON. In this way, she
fulfils her duty in significant manner as care audit partner. It is helpful to attain more
effective results at workplace for audit. In this duty, she exercised continuousl to do work
to meet with client requirement.
 Understand client business and provide audit services to meet their expectations:
With the help of understanding client business and providing them audit services, Sarah
Hancock can also work in D-MERTON to meet client expectations. It helps to understand
customer expectations to enhance profitability (Murphy, McAlea and Mullins, 2016).
 Maintain up to date knowledge for company standards, policies and regulations:
Sarah Hancock also require maintaining their knowledge for ascertain company
standards, policies and regulations as well. It helps to develop business performances of
D-MERTON.
 Develop innovative ideas to extent services for client: Sarah also possess some
innovative ideas through which she can extent services for client. It will help to
understand customer requirement to meet its objectives and goals (Harvey and
McCrohan, 2017). In D-MERTON, innovative ideas help to understand the services
which are required by client.
 Attend meeting with clients as per industry trends: According to industry trends, Sarah
Hancock need to arrange meeting with clients. It will help to understand their
6

requirement and behaviour towards business products. Hence, she can work effectively in
making their financial data (Audit Partner Responsibilities and Duties, 2017). From the
above duty, it can be stated that Sarah work effectively her duties to make financial
reports and outcomes.
CONCLUSION
From the above report, it can be concluded that in D-MERTON, there are several people
work together for developing results and assess performances at workplace. Furthermore, it
summarized about responsibilities of accountants also explains in the present business to analysis
performances Moreover, it articulated about duty of audit partner to make effective functioning
at workplace.
7

REFERENCES
Books and Journals
Buchanan, J. M., 2014. Public finance in democratic process: Fiscal institutions and individual
choice. UNC Press Books.
Couture, W. G., 2015. False Statements of Belief as Securities Fraud. Law Review, 43, p.351.
Dai, J. and Vasarhelyi, M. A., 2017. Towards Blockchain-based Accounting and Assurance.
Journal of Information Systems.
Ferran, E. and Ho, L. C., 2014. Principles of corporate finance law. Oxford University Press.
Harvey, J. W. and McCrohan, K. F., 2017. Improving AACSB Assurance of Learning With
Importance-Performance and Learning Growth: A Case Study. Marketing Education
Review. pp.1-15.
Murphy, F., McAlea, E. M. and Mullins, M. eds., 2016. Managing Risk in Nanotechnology:
Topics in Governance, Assurance and Transfer. Springer.
Peters, G. F. and Romi, A. M., 2014. The association between sustainability governance
characteristics and the assurance of corporate sustainability reports. Auditing: A Journal
of Practice & Theory. 34(1). pp.163-198.
Online
Audit Partner Responsibilities and Duties, 2017. [Online] Available through:
<https://www.resumebaking.com/job-responsibilities/audit-partner-responsibilities/>.
[Accessed on 12th September 2017].
Financial Risk and Its Types, 2017. [Online] Available through:
<https://www.simplilearn.com/financial-risk-and-types-rar131-article>. [Accessed on 12th
September 2017].
8