Financial Analysis Report on Audit Planning for Small Company

Accounting
Financial Analysis
Report
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Date

Executive summary
A financial analysis report has been prepared on the audit planning of one of the small companies
given in the report. The audit planning report will be handed over to the audit partner once it is
prepared and completed by the audit senior.
The report highlights how to determine materiality for an enterprise and what are the factors to be
considered while doing fraud risk analysis. The preliminary analytical review of the company has also
been done and based on the same, the critical accounts have been identified and audit assertions
and audit procedures to be implemented have also been stated.

Table of contents
Executive summary.................................................................................................................................i
Table of contents...................................................................................................................................ii
1. Introduction...................................................................................................................................2
1.1 Authorisation.........................................................................................................................2
1.2 Limitations.............................................................................................................................2
1.3 Scope.....................................................................................................................................2
2. Question 1: Materiality..................................................................................................................3
Preliminary assessment of materiality for the financial report on total asset...................................3
A discussion of appropriateness of this figure for client....................................................................3
Possible impact of the changing the preliminary assessment on the audit budget...........................3
3. Question 2: Preliminary Analytical review - Trend analysis...........................................................4
4. Question 3: Income statement accounts having risk of material misstatement............................5
5. Question 4: Audit procedures to be employed..............................................................................5
6. Question 5: Fraud Risk Analysis.....................................................................................................6
7. Conclusion.....................................................................................................................................6
Reference:.............................................................................................................................................7
Appendix...............................................................................................................................................8