ACC5AAS - Auditing And Assurance Services
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La Trobe University
Added on 2019-10-31
ACC5AAS - Auditing And Assurance Services
La Trobe University
Added on 2019-10-31
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PLANNING OF AUDIT AND RISK ANALYSIS – MAYNE PHARMA LIMITEDStudent Name: Student ID:
EXECUTIVE SUMMARYThe title of the report is planning of audit and the analysis of the risk. As the title suggests thereport has been flowed on the planning of the audit and what matters the auditor shall considerwhile planning the audit. The first objective of the report is to plan the audit so that the auditteam can perform the audit function very effectively. The second objective of the report is toanalyze the annual report of the company very effectively and to analyze each and every item ofthe financial statements critically so as to cover each and everything in the audit plan. With thesetwo major aims the study has been performed with separate headings and sub headings wherevernecessary.
ContentsEXECUTIVE SUMMARY.................................................................................................................................2INTRODUCTION...........................................................................................................................................4UNDERSTANDING OF CLIENT’S BUISNESS....................................................................................................4BUSINESS OPERATIONS...........................................................................................................................5INDUSTRY IN WHICH IT OPERATES..........................................................................................................5REGULATIONS FOR PHARMACEUTICAL GOODS...........................................................................................6FINANCIAL STATEMENTS ANALYSIS.............................................................................................................7BALANCE SHEET.......................................................................................................................................7PROFIT AND LOSS....................................................................................................................................8CASH FLOWS............................................................................................................................................9IDENTIFICATION OF RISKS..........................................................................................................................10GOING CONCERN ASSUMPTION................................................................................................................11SOCIAL RESPONSIBILITY AND REPORTING.................................................................................................11CONCLUSION.............................................................................................................................................12REFERENCES..............................................................................................................................................13
INTRODUCTIONAccounting is the activity which records the transaction of businesses on daily basis and resultsare reported to the management of the company at the regular intervals. Auditing is an activitythrough which the books of accounts are checked and verified by the independent third partiesappointed by the company and is known by the name of auditors of the company. Auditors arerequired to plan their audit first depending upon the nature of the business of the company andthe size of the company. For the purpose of this report, Company – Mayne Pharma Limited hasbeen selected for the study. In this report, at first the understanding of the business of the clienthas been discussed and how they are performing their functions. In the second section,regulations and the rules that the pharmaceutical companies are required to comply with havebeen detailed. In the third section, annual report of the company for the financial year ending twothousand sixteen has been discussed in relation to the changes made in each item of the balancesheet and profit and loss account. After that the risk associated with the business identified andthe going concern assumptions are verified. At the last the reference has been made to theconcept of social responsibility as to how the company has been performing the same. With thisthe study has ended up with the conclusions. UNDERSTANDING OF CLIENT’S BUISNESSThe beginning of every audit starts with the understanding of the business of the company as tohow the company’s main business activities and how does it functions. As per the recentintroduction of the auditing standard number 315 which states through the paragraph numbereleven that the auditor shall have the understanding of the nature of business of the prospectiveclient before proceeding to the conduct of an audit. In the given case following are theunderstandings that has been obtained from the Mayne Pharma group limited annual report(AASB, 2006).BUSINESS OPERATIONSThe company is the public limited company and listed in the Australian Stock Exchange. Themain focus on the company’s business is for supplying or transporting the medicines or the drugsat the place where it is required. In other words, the main business of the company is to deliver
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