logo

Report on Auditing and Assurance - HI6026

13 Pages2135 Words142 Views
   

Holmes Institute Sydney

   

Audit, Assurance and Compliance (HI6026)

   

Added on  2020-03-02

About This Document

HI6026 - The following document is based on your reading and understanding the document. The paper has some questions answer based on your learnings. The paper has following questions 1. Explain how results influence planning decisions for the audit if analytical procedures to the financial report information of DIPL for the last three year is applied. 2. Conduct risk assessment and find inherent  risk factors that arise from the nature of DIPL’s business operations.

Report on Auditing and Assurance - HI6026

   

Holmes Institute Sydney

   

Audit, Assurance and Compliance (HI6026)

   Added on 2020-03-02

ShareRelated Documents
Running head: AUDITING AND ASSURANCEAuditing and AssuranceName of the Student:Name of the University:Author Note:
Report on Auditing and Assurance - HI6026_1
2AUDITING AND ASSURANCETable of ContentsQuestion 1........................................................................................................................................3Part A...............................................................................................................................................3Application of analytical procedures to the financial report information of Double Ink PrintersLimited.............................................................................................................................................3Profitability Analysis...................................................................................................................3Liquidity Analysis.......................................................................................................................6Efficiency Analysis......................................................................................................................7Solvency Analysis.......................................................................................................................8Part B...............................................................................................................................................8Impact of analytical review on audit planning for the year ending 30th of June 2015.....................8Question 2........................................................................................................................................9Identification of inherent risk factors that arise from the nature of business operations of DoubleInk Printers Limited.........................................................................................................................9Question 3......................................................................................................................................11Part A.............................................................................................................................................11Key risk factors related to misstatement in financial reporting.....................................................11Part B.............................................................................................................................................12Effect of risk factors on conduct of audit......................................................................................12Reference List................................................................................................................................13
Report on Auditing and Assurance - HI6026_2
3AUDITING AND ASSURANCEQuestion 1 Part A Application of analytical procedures to the financial report information of Double InkPrinters Limited Ratio analysis technique had been applied for the analytical review after evaluating thefinancial reports of Double Ink Printers Limited for three consecutive years (William, Glover andPrawitt 2016). Profitability AnalysisProfitability RatioDouble Ink Printers Limited201320142015Gross Profit 600450060795006604500Net sales 342120003769950043459500Gross Profit 17.5508593516.126208615.1969075Double Ink Printers Limited201320142015Net Income 235919022913622972183Net Sales 342120003769950043459500Net Profit 6.8957967966.07796396.83897192Double Ink Printers Limited201320142015Net Income 235919022913622972183Total Assets 129300001590390026147991Return on assets18.2458623414.407547811.3667738Double Ink Printers Limited201320142015
Report on Auditing and Assurance - HI6026_3
4AUDITING AND ASSURANCENet Income 235919022913622972183ShareholderEquity 91500001078365012250491Return onEquity 25.7834972721.248482724.2617459The above table shows profitability ratio of Double Ink Printers Limited and each ratioindicate the profitability position of business enterprise. The gross profit ratio of Double Ink Printers Limited for three consecutive years hasdeclined from 17.55% to 16.13% n 2014 and then again 15.20% in the year 2015. The net profit of Double Ink Printers Limited for three consecutive years is 6.90%, 6.08%and 6.84%. Increased net profit ratio for the year 2015 is because of higher interestexpense for that year borne by Double Ink Printers Limited (Simnett, Zhou and Hoang2016). The return on assets of Double Ink Printers Limited for three consecutive years is18.25%, 14.41% and 11.37%. Declined trend of return on assets for the company is notpreferable and should engage in further acquisition of assets in the near future. The return on equity of Double Ink Printers Limited for three consecutive years is25.78%, 21.25% and 24.26% (Simnett, Carson and Vanstraelen 2016).
Report on Auditing and Assurance - HI6026_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
HI6026 Audit, Assurance and Compliance | Study
|12
|2632
|58

HI6026 - Audit, Assurance and Compliance - Case Study
|10
|2515
|43

Analytical Review on Audit Planning for Double Ink Printers Limited
|14
|2717
|309

Audit - Double Ink Printers Limited | Financial Reports
|8
|1477
|54

Assignment | Audit, Assurance and Compliance (HI6026)
|10
|2449
|39

HI6026: Audit, Assurance and Compliance | Assignment
|11
|2377
|41