Importance of Audit Expert in Double Ink Printers Ltd

HI6026 Audit, assurance and compliance
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Table of Contents
Introduction:....................................................................................................................................3
Task 1...............................................................................................................................................4
As part of your planning process, you are considering whether you will need to use the
services of an expert in the audit of Double Ink Printers Ltd (DIPL).........................................4
Task 2...............................................................................................................................................7
2. (a) As part of your planning process, you are considering whether you will need to use the
services of an expert in the audit of Double Ink Printers Ltd (DIPL).........................................7
2. (b) Explain why the identified factors are relevant to the calculation of the preliminary
figure for overall materiality........................................................................................................9
2. (c) Describe how the identified factors will influence preliminary figure for overall
materiality in the audit planning process...................................................................................11
Conclusion:....................................................................................................................................13
References:....................................................................................................................................14
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Introduction:
The project report highlights the need and importance of the audit system and compliance
procedure in the working operations of the Double Ink Printers Ltd (DIPL) and the need of
developing an effective planning process so as to implement it in its operation. The report further
explains the need and benefit of employing an audit expert for conducting the audit work so as to
have a true and fair view over the conduct of the concerned company. The project report also
highlights the concept of materiality and its significance in the concerned company at the
preliminary stages so as to enable the company to carry its operation in an effective manner.
Apart from this, the project report highlights the factors that would influence the concept of
materiality. The report has given key areas to be focused throughout the report enabling the
concerned organization to make a value judgment and thereby capturing a great share in the
market.
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Task 1
As part of your planning process, you are considering whether you will need to use the
services of an expert in the audit of Double Ink Printers Ltd (DIPL).
Auditing of the company will provide the management of the company with a true and fair view
with regard to the income statement and the balance sheet of the company. The proper working
procedure of audit will provide the management of the company to gain valuable information
such as cost assessment, control procedure, to enhance the quality of the overall environment of
the company so as to increase the productivity level of the organization. As such, there exists a
great need for the appointment of the audit expert who could facilitate the management of the
company in the generation of the actual working pattern and position of the company.
According to Benli, et. al. (2014), the work of an audit expert is to be performed by such
individuals or organization which helps in possessing the required information to the company
and have relevant skills and knowledge in the field of accounting and auditing course of actions.
Audit expert is a person who assists the auditor in its working in the compilation of the suitable
audit evidence. The skill and knowledge of the auditor decide the viability and the need for the
information collected in his audit process. An audit expert needs to have the following skills and
knowledge such as:
Vision power: An audit expert needs to deal with various clients in various industries, therefore
it calls the auditor to clearly understand the nature of the business the client is dealing so as to
develop a clear picture of all the issues related to the concerned business.
Oversee a big scenario: An audit expert is required to understand and evaluate the working
operations and pattern quickly so as to enable him to develop all the planning stages with regard
to his audit working. Development of the audit planning stages requires an in-depth knowledge
and expertise level, therefore an auditor is required to oversee in a broad sense (Tepalagul & Lin,
2015).
Decision-making ability: Auditor expert after collection of information is required to evaluate
the relevant and irrelevant information. Therefore it requires the auditor to understand and judge
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