Auditing Theory and Practice 2022 Report

Running head: AUDITING THEORY AND PRACTICE
Auditing Theory and Practice
Name of the Student
Name of the University
Author’s Note

1AUDITING THEORY AND PRACTICE
Table of Contents
1. Executive Summary...............................................................................................................2
2. Identification of Inherent Risks..............................................................................................3
AGL Energy Ltd....................................................................................................................3
Qantas Ltd..............................................................................................................................4
3. Audit Procedures for the Identified Inherent Risks................................................................5
References..................................................................................................................................7

2AUDITING THEORY AND PRACTICE
1. Executive Summary
The main purpose of this report is to undertake the audit planning for two Australian
companies while considering the needed audit planning strategies; they are AGL Energy Ltd
and Qantas Ltd. This report involves in assessing the inherent risks of these companies,
designing the audit procedures for the identified inherent risks, analytical review, substantive
audit procedures and audit report. Inherent risk analysis shows that these companies faces
inherent risk mainly because of intense competition in the market, presence of complex
accounting judgments and assumptions, dependence on government and fluctuation in fuel
and exchange rate. The auditors will be required to undertake the process to check and verify
the opening balances and analytical tests for obtaining more relevant and appropriate
information.