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Sample Assignment on Auditing

   

Added on  2021-06-14

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Running head: AUDITAuditName of the Student:Name of the University:Authors Note:
Sample Assignment on Auditing_1

1AUDITExecutive summary:The various aspects that might affect the BML Ltd. performance over the years have beendiscussed in the following report. Finding out the weakness in the internal control of thecompany and to suggest the ways of remediating them is the prime focus of the report. Forachievement of the purpose various financial and non-financial information available with theauditor will be utilised.
Sample Assignment on Auditing_2

2AUDITTable of ContentsIntroduction:...............................................................................................................................3Analysis of the ratios and the additional information as listed out by audit partner, Ms.Leanne Hopkins:........................................................................................................................3Analysis of the ratios and the additional information to determine the risks faced by thecompany:....................................................................................................................................6Internal controls that are effective, risks that they alleviate and the test of control to checkthem............................................................................................................................................9Identification of the weaknesses in the internal control for contract payroll:..........................10Conclusion:..............................................................................................................................11Reference..................................................................................................................................12
Sample Assignment on Auditing_3

3AUDITIntroduction:The following report presents the analysis of all the financial and the non –financialaspect so the company. The purpose of the analysis is to determine the weaknesses that arepresent in the internal control of the company. After the weaknesses of the internal control ofthe company are being identified, an effort will be made to determine their implication on theaudit risk of the company. In addition to that an effort will be made to alleviate, the variousrisk faced by the company (William et al., 2016).Analysis of the ratios and the additional information as listed out by audit partner, Ms.Leanne Hopkins:AccountAnalysis Audit riskAudit steps toreduce risk Plantandequipment It has been seen over the period of18 months that the assets of thecompany had to encounter asignificant decrease in their utilitydue to the obsolescence of themechanical equipment’s prior to theuse oftechnology-aided machinery.The company is facing the risk oflosing its present customers and theviability of its operations in theevent it fails to replace the agingmachinery with the new computeraided ones (Rezaee et al.,2018).The requirement of the company inrespect of the plant and machineryhas changed drastically over theperiod. The company needs toaddress the issue of incapacity ofthe present fleet of machinery togenerate the revenue and incomefor the company and the issue ofadopting a policy of depreciationthat can better reflect the recentchanges in the environment of thecompany. Of the significant audit riskpresent in the present caseis that of the right treatmentof the deprecation or ratherdetermination of a policythat will most efficientlyreflect the changes that hashappened in the recenttimes in respect of the valueof the assets and factor inthat information todetermine the depreciationamount of the assets (Wanget al., 2015). In addition tothat, the present share of themarket held by thecompany has reducedsignificantly over the years.The company needs toaddress the issue veryobjectively to determine thereal reduction in the valueof the assets (Alles et al.,2018). The reason beingthat the circumstance inwhich the machineries werebought and the presentcircumstances of thecompanySeveral steps can betaken by the auditorto reduce the risks.On of them includethe physicalverification of theassets. The reasonbeing that the auditorwill get an idearegarding the revenuegenerating capacity ofthe asset. In additionto this, the auditormust make sure thatthe company makesuse of suchaccounting policy inrespect of thedepreciation thatobjectively recognisesthe amount to berecorded in thefinalcoalstatementsofthe company inrespect of thedepreciation.
Sample Assignment on Auditing_4

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