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Modern Auditing and Assurance Service - Assignment

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Added on  2020-05-16

Modern Auditing and Assurance Service - Assignment

   Added on 2020-05-16

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Running head: MODERN AUDITING AND ASSURANCE SERVICEModern Auditing and Assurance ServiceName of the Student:Name of the University:Author Note
Modern Auditing and Assurance Service - Assignment_1
1MODERN AUDITING AND ASSURANCE SERVICETable of ContentsIntroduction......................................................................................................................................3Audit Planning............................................................................................................................3Analytical Review.......................................................................................................................3Preliminary judgment of materiality...........................................................................................4Accounts Receivable.......................................................................................................................4Rationale for Selection................................................................................................................4Assertion and Explanation..........................................................................................................5Recommended Audit Procedure.................................................................................................5Inventory..........................................................................................................................................5Rationale for Selection................................................................................................................5Assertion and Explanation..........................................................................................................6Recommended Audit Procedure.................................................................................................6Cost of Sales....................................................................................................................................6Rationale for Selection................................................................................................................6Assertion and Explanation..........................................................................................................7Recommended Audit Procedure.................................................................................................7Service Fees (Revenue)...................................................................................................................7Rationale for Selection................................................................................................................7Assertion and Explanation..........................................................................................................7Recommended Audit Procedure.................................................................................................8Wages Account................................................................................................................................8Rationale for Selection................................................................................................................8Assertion and Explanation..........................................................................................................8
Modern Auditing and Assurance Service - Assignment_2
2MODERN AUDITING AND ASSURANCE SERVICERecommended Audit Procedure.................................................................................................8Other Income...................................................................................................................................9Rationale for Selection................................................................................................................9Assertion and Explanation..........................................................................................................9Recommended Audit Procedure.................................................................................................9References......................................................................................................................................10
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3MODERN AUDITING AND ASSURANCE SERVICEIntroductionAudit PlanningAudit planning essentially refers to the planning by an auditor in regards to the systematicaudit process that is carried out for the evaluation of the financial statements in order to ensurethat the accounting statements reflect the true and fair view of the financial condition of thecompany. The audit of the accounting statements of a corporate entity is carried out in eachfinancial year. A quality audit plan reflects the particular regulations and policies that should bestrictly followed by an auditor for the successful execution of the auditing procedures. The majorbenefit that can be facilitated by the providence of an audit plan is that, by the following of theaudit plan, an auditor can obtain enough evidence for the required examination and evaluation ofthe financial and non-financial proceedings of the company. The auditing procedure or planeffectively includes the testing of the various account balances for the identification of thematerial misstatements in the books of accounts. Thus, the audit testing of accounts forms acrucial part of audit planning van (Buuren caes et al., 2014).Analytical ReviewThe analytical review of the trial balance has been asked in the question can beeffectively carried out by the horizontal trend analysis of the account balances of the financialstatements of the company. The advantages that can be accrued from the analytical review of thetrial balance is that the auditor can identify the material misstatements in the different accountbalances. The misstatements may have occurred either due to the fraud carried out by theconcerned employee of the organization willingly or on the account of carelessness. Theanalytical review of the chosen accounts that have been carried out in this particular report hasbeen effectively carried out by the horizontal trend analysis of the account balances.Preliminary judgment of materialityThe preliminary judgment of materiality refers to the particular amount of materiality thatis effectively carried out by the auditor in order to ascertain the maximum permissible amountthat can be allowed in case the financial accounts are misstated. This particular amount ofmateriality that is fixed by the auditor, is the maximum amount by which the accounts ifmisstated, will not hamper the quality of the financial statements and they will continue
Modern Auditing and Assurance Service - Assignment_4

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