Ask a question from expert

Ask now

HI6026 Auditing Theory and Practice

13 Pages2907 Words100 Views
   

Holmes Institute Sydney

   

Audit, Assurance and Compliance (HI6026)

   

Added on  2020-03-01

HI6026 Auditing Theory and Practice

   

Holmes Institute Sydney

   

Audit, Assurance and Compliance (HI6026)

   Added on 2020-03-01

BookmarkShareRelated Documents
Running head: AUDITING THEORY AND PRACTICEAuditing Theory and PracticeName of Student:Name of University:Author’s Note:
HI6026 Auditing Theory and Practice_1
1AUDITING THEORY AND PRACTICETable of ContentsAnswer to question 1:......................................................................................................................2Explanation:.................................................................................................................................3Answer to question 2:......................................................................................................................4Answer to question 3:......................................................................................................................7Answer to part A:.........................................................................................................................7Answer to part B:.........................................................................................................................9References:....................................................................................................................................10
HI6026 Auditing Theory and Practice_2
2AUDITING THEORY AND PRACTICEAnswer to question 1:The investigative method corresponding to the fiscal information of the DIPL could befacilitated in the groundwork of the audit plan. Such an arrangement can be done in a specificway, focussing on the guidelines, which is important to be complied to at the time of undertakingof the audit. Chiefly, the assessor is enabled to maintain the total amount of the audit at asignificant level which assists in the reduction of the thought processes related to the clients(Zureigat 2015). The diagnostic approach to the financial statements of the DIPL shows theinformation dissemination method from it. Such an evaluative method, is possible to beconducted by the use of a number of methods and techniques. With the help of the evaluationanalysis method with regard to the financial announcements, several accountants as alsoeconomic analysts can use the financial announcements to understand and evaluate them toarrive at crucial business decisions (Barr-Pulliam et al. 2017).The type of the common sizing analytic method allows the fiscal announcementsassessment to a common point of reference. This causes the possible contrast of the fiscalstatements in association to the several items lines stated in the financial report along with themethod of reporting. As an example, it can be said that, the registration of the items like theassets, liabilities as well as the equity of the owners in the fiscal reporting of the company alongwith the investigational digression form the normal scenario (Bayer and Cowell 2016).Theprocedure of benchmarking is considered as a fiscal procedure and it should be utilised for theassessment of the audit plan. The variance of the original financial declaration from the basicenables the deviation understanding as well as the evaluation of the recognised variance reason.Along with this, the ratio analysis can be adjudged as a suitable analytical method which can be
HI6026 Auditing Theory and Practice_3
3AUDITING THEORY AND PRACTICEused for contrasting the fiscal declarations along with the assessment of the audit plan (Bepariand Mollik 2015).Explanation:The results of the choices of planning, related to the audit and its planning are influencedmajorly by the analytical method of disseminating the sources from the financial reports. Thefollowing report is considered:Particulars201320142015Solvency ratio0.620.440.21Profit margin0.0680.600.06Current ratio1.421.461.50The table shown above states the present DIPL ratio which has improved over the years.On the other hand, it can be said that the profit margin has been seen to change rapidly all overthe time periods. Taking the assistance of the specific ratio, the net profit of the specificcompany, can be compared with the total generated revenue (Bryce, Ali and Mather 2015).However, there is a chance of carrying high value to the assessor in obtaining an overview of thestatement regarding the fact that the expenses are higher or lower as also regarding whether themanagement requires budget reduction as also its total expenses. Any favourable or unfavourablealterations in the ratio can be utilised as a factor for the reference in order to ascertain thesoundness of the financial condition of the DIPL. For example, the calculated solvency ratio inthe above table helps in revealing the feasible as well as the unrealistic trends in the total fiscalposition of the specific firm. In a similar manner, the contrast of the ratio could give an insightinto the long as well as short term business necessities. Thus it is possible for the auditors to gainan insight into the DIPPL’s relative position over the entire time period along with the evaluation
HI6026 Auditing Theory and Practice_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
HI6026 - Audit, Assurance and Compliance1
|11
|2624
|227

HI5026 Auditing and Assurance Services
|13
|2968
|47

Audit AUDIT AUDIT 7 Audit Author's Note
|12
|3097
|66

The Financial Report and Information of DIPL
|11
|2621
|26

HI6026 - Audit, Assurance and Compliance | Assignment
|12
|2880
|56

HI6026 | Audit, Assurance & Compliance Assignment
|9
|2015
|39