Professional Auditing

Running head: PROFESSIONAL AUDITING
Professional Auditing
Name of the Student:
Name of the University:
Author’s Note

PROFESSIONAL AUDITING
1
Executive Summary
The main purpose of the assessment is to analyse the financial statement of Konekt Limited for
the year 2018 for analysing if there are any material misstatement in the financial statement of
the business. The assessment would also be ascertaining the risks which is related to the five
account balances as identified in the annual report of the business. The assessment would also be
checking the materiality of the items which are shown in the annual report of the business. The
assessment would also be computing the planning materiality of the business for assessing
whether the items which are shown in the annual report are free from material misstatement or
not. The assessment would also be applying audit risk model for assessing the three types of
risks of the business.

PROFESSIONAL AUDITING
2
Table of Contents
Introduction......................................................................................................................................3
Key Information...............................................................................................................................3
Nature of the Clients Business.....................................................................................................4
Audit Program.............................................................................................................................4
Identification of Materially Misstated Account Balances...........................................................5
Planning Materiality....................................................................................................................7
Audit Risks of the Selected Account Balances............................................................................9
Conclusion.....................................................................................................................................14
Reference.......................................................................................................................................15

PROFESSIONAL AUDITING
3
Introduction
The main purpose of the assessment is to analyse the business of Konekt ltd which is
engaged in providing health and risk management services in Australia. The analysis would be
conducted from the perspective of audit in order to asses if the financial statement is showing
true and fair view of the annual report of the business (Konekt.com.au. 2019). The report would
be forming an appropriate audit plan which would focus on collecting evidences on the basis of
which an audit opinion would be formed. The initial steps which are undertaken by the auditor
would be considered for collecting evidences and also proper application of relevant auditing
standards would also be shown in the report. In addition to this, five material accounts which are
shown in the annual report would be assessed in order to ensure that the balances which are
shown are free from material misstatement or not. The report would also be considering the audit
risks which are associated with the five balances which is shown in the annual report of the
business. The assessment would also be showing application of audit risk model to determine the
different risks which are applicable to the five accounts which are considered in the assessment.
Key Information
The first step which is really important if an auditor is conducting audit for a business is
planning the activities of audit process. Appropriate planning results in smooth conducting of the
process of auditing and the auditor is also able to collect important audit evidences relating to the
business. One of the key steps which the auditor of the company needs to undertake is
computation of planning materiality which would help the auditor determine if the financial
statements are showing accurate view of the results. The auditor needs to adhere to relevant
auditing standards during the course of audit and simultaneously apply audit procedure for the