Professional Auditing: Audit Plan for Konekt Limited

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

PROFESSIONAL AUDITING
1
Executive Summary
In this assessment we would be applying our detailed knowledge for conducting the audit of
Konekt Limited for the year 2018 in order to ascertain whether the financial statements are
appropriately presented and ensure that the financial statements are free from any material
misstatement. We would be preparing the audit plan for the business after confirm terms of our
engagement as per ASA 210 Terms of Audit Engagements and according the guidelines
provided by ASA 300 Planning an Audit of a Financial Report. The report would be analysing
the risks which are faced by the business and the same would be done in accordance with ASA
315 Understanding the Entity and its Environment and Assessing the Risks of - Material
Misstatement. In addition to this appropriate documentation of the key matters would be done on
the basis of ASA 220 Audit Documentation. We would be considering the planning materiality
for the business on the basis of which it would be identified if the financial statements are free
from material misstatement or not. The guidelines which are provided in ASA320 Materiality
and Audit Adjustments would be considered for such a case. Once the risks have been identified,
the auditor would take appropriate steps considering the guidelines of ASA330 The Auditor’s
Procedures in Response to Assessed Risks. Finally, the report would be including an opinion as
to estimate if the financial statement are showing true and fair view of the annual reports of
Konekt Limited or not.
Table of Contents

PROFESSIONAL AUDITING
2
Introduction......................................................................................................................................3
Key Information...............................................................................................................................3
Nature of the Clients Business.....................................................................................................3
Audit Program.............................................................................................................................4
Identification of Materially Misstated Account Balances...........................................................5
Planning Materiality....................................................................................................................7
Audit Risks of the Selected Account Balances............................................................................8
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................15

PROFESSIONAL AUDITING
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Introduction
The main purpose of the assessment is to analyse the financial performance of Konekt
Limited from the perspective of audit. The assessment would be considering the audit program
which is to be formulated for the purpose of assessing whether the financial statements are
showing true and fair view. The assessment would be focusing on gaining an understanding of
the business of Konekt Limited in order to effectively formulate a plan which can help the
auditor to collect appropriate audit evidences (Konekt.com.au. 2019). In addition to this, the
assessment would also be identifying five significant account balances which are subjected to the
risks of being materially misstated. In order to identify the accounts which are materially
misstated, planning materiality is to be computed. In addition to this, what are the risks which is
faced by the five account balances which have been recognised would be discussed in details.
Key Information
In order to effectively conduct an audit for a business, appropriate planning is required to
be conducted by auditor so that more audit evidences can be collected. The audit planning
process also involves estimation of planning materiality on the basis of which performance
materiality of different items are computed (Coetzee and Lubbe 2013). The auditor would also
be requiring to perform appropriate audit procedure so that each and every item which is
represented in the annual reports of the business can be analysed.
Nature of the Clients Business
The business which is considered for the purpose of conducting audit is Konekt Limited
which is private listed company operating in Australia and the company is known for the health
and risk management solutions which is provided by the business. The company is one of the