(PDF) Integrity Management

Running head: AUDIT
Audit
Name of the Student:
Name of the university:
Authors note:

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Table of Contents
Introduction:....................................................................................................................................2
Business information:......................................................................................................................2
Integrity and responsibility of the management:.............................................................................3
Auditor’s independence and transparency:......................................................................................3
Risk associated with the audit engagement:....................................................................................4
Preliminary audit planning:.............................................................................................................5
Risk assessment:..........................................................................................................................5
Approach:........................................................................................................................................6
Pre-engagement activities:...............................................................................................................7
Staffing and time budget:.................................................................................................................7
Materiality:......................................................................................................................................8
Internal controls within the company:...........................................................................................10
Documentation...............................................................................................................................12
Sampling decisions:.......................................................................................................................12
Performance of planned audit programs:.......................................................................................13
Audit findings:...............................................................................................................................16
Conclusion:....................................................................................................................................17
Reference.......................................................................................................................................18

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Introduction:
The purpose of the Audit Planning Memorandum is to provide a brief to the Audit
committee on the approach that have been adopted for the audit of Rogers Communications.
The main aim of auditing is to provide independent opinion on the financial statements of an
organization. The opinion of the auditors on the financial statements will help the users of the
financial statements to take correct decisions affecting their interests in such organizations. Audit
must be carried out in accordance with the Generally Accepted Auditing Standards in order to
ensure that the audit opinion is in accordance with the standards on auditing (Gildenhuis & Roos,
2015). In this document, an audit shall be conducted on the financial statements of Rogers
Communications, one of the largest companies in terms market valuation in the whole of
Canada. The document shall contain the procedures to be followed in the audit of the financial
statements of Rogers Communications from pre-audit engagement to the conclusion of the audit
of the company.
Business information:
Rogers Communications is one of the largest companies in the whole of Canada and it
operates in the field of communications and technology. To be more specific the company
operates in the field of wireless communications, cable television, telephone, internet and other
forms of communications in the country and other parts of the world. Founded in the year 1960
by Rogers Vacuum Tube Company the company has it’s headquarter situated in Toronto,
Ontario, Canada. Alan Hoe is the current chairman of the company with Joe Natale as the
president and Chief Executive Officer of the company (Krahmer & Phillips, 2016). The
company’s shares are listed on the Toronto stock exchange and New York Stock Exchange with
the ticker RCI. Over the years, the company has invented new ways to enrich the experience of

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its customers by providing wireless network services as well as internet connectivity with
unrivalled quality and transmission power. Bell Canada is the primary competitor of the
company with substantial media assets to provide similar wireless network, cable television,
telephone services and internet connectivity.
Integrity and responsibility of the management:
The management over the years have conducted the business operations with honesty and
integrity to take the company to the top of the telecommunication and network business in the
country. The company is not only the largest telecommunication company in the country but also
one of the largest companies in all across Canada. Over the years, the annual reports of the
company containing the financial statements of the company have been prepared in accordance
with the International Financial Reporting Standards increase the confidence of the auditors on
the integrity and honesty of the management (Council, 2015).
The management is responsible for the preparation and presentation of the financial
statements of the company and the auditors are only reasonable to express an appropriate opinion
on the financial statements of the company. Thus, the use of appropriate accounting standards to
prepare and present the financial statements of the company is the responsibility of the
management and the auditor has nothing to do with the preparation and presentation of these
statements (Rose & Rose, 2014).
Auditor’s independence and transparency:
The Canadian Auditing standard (CAS) 260 “Communicating of Audit matters with
those charged with Governance” requires that the auditor should communicate any relationship
that exists between the company and the auditor. The auditor of the company is required to be

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independent of the entity so that the auditor can provide an unbiased opinion on the financial
statement of the company (Miro et al., 2015). It is important to consider the independence while
appointing the auditor of the company and at the. Planning stage. Thus, no employee of the
company or any person who has any interests associated with the company shall be appointed as
the auditors of the company. In this case, the Auditor is independent of the entity and it can be
assured that the audit firms conforms to the highest level of governance standard.
Risk associated with the audit engagement:
The professional standards requires the auditor to consider these two kinds of risks:
 Fraudulent revenue recognition;
 Management override of control;
There are certain risks that revenues are recognised fraudulently to provide a different picture
of the financial situation of the organisation. The auditor should assess the risk of fraudulent
revenue recognition both at the time of accepting the engagement and at the planning stages of
audit (Okafor, 2015).
The management has the position of power to manipulate the accounting records and prepare
a financial statement with the fraudulent intention. The auditor should assess this risk at the
planning stage. In order to assess this risk test of control is conducted. In addition to this
substantive audit, procedure is conducted over the accounting estimates, journal entries and
significant transactions that occur in the normal course of business (Rahma et al., 2016).
There are two types of risks associated with the expression of audit opinion. Firstly, the
risk of expressing an opinion that the financial statements of the company are free of material
errors and misstatements whereas these are not. Secondly the risk of expressing an opinion that

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the financial statements of the company are not free from misstatements whereas the financial
statements not contain any material errors or misstatements (Chonowitz, 2015). The auditors are
mainly concerned with the risk of expressing an inappropriate opinion on the financial
statements that the statement are free of material errors where in fact the statements contain
material errors.
After appraising the findings from the pre-engagement activities, the auditors shall
determine whether it would be appropriate to accept the engagement as auditor of the company
to express an appropriate audit opinion on the financial statements of the company.
Preliminary audit planning:
Preliminary audit planning is mainly dependent on the identified risks in the audit of the
financial statements of the company. Generally the pre-engagement activities and preliminary
investigation about the affairs and operations of the company will help us to identify the risks
associated with the audit of the financial statements of the company (Onoja & Usman, 2015).
Based on the findings of preliminary audit planning shall be made. The preliminary audit
planning of the company shall have to be made after considering figures and trends identified
from the brief financial statements of the company, i.e. income statement, Balance sheet and cash
flow statement of the company.
Risk assessment:
In order to assess the risk of material misstatement at the overall financial statement level
it is important to have significant knowledge about the financial performance and position of the
company. The auditors will use the financial statements of the company, i.e. Income statement of