logo

AUDITING AUDITING Auditing 1 1 Auditing 2016 and 2017 2 Retail Food Group

   

Added on  2021-05-31

18 Pages4534 Words377 Views
Running head: AUDITINGAuditingName of the Student:Student ID:Signature:

AUDITING1Table of ContentsIntroduction:...............................................................................................................................2Critically evaluation of the audit reports for 2016 and 2017.....................................................2Providing an assessment of the internal control environment of Retail Food Group................5Assessing the business risks associated with Retail Food Group..............................................7Evaluating operations of Retail Food Group from an ethical perspective.................................9Conclusion:..............................................................................................................................11Reference..................................................................................................................................13

AUDITING2Introduction:The purpose of this report is to analyse the annual report of the RFG for determiningvarious aspects of the group related to the audit. The various aspects that are going to bereviewed and analysed in the report include elements such as the type of audit report issuedby the auditor, the assessment of the internal control of the entity, the business risks that areassociated with the operations of the entity and various ethical considerations in respect ofidentification of the deficiency in their system (Dojeiji et al. 2017). For the purpose ofdetermination of these factors, the annual report of the company for the year 2016 and 2017will be critically analysed. Based on the findings of the analysis a conclusion will be drawn inrespect of the audit practices of the present auditor and the appropriateness of the audit reportbeing issued by him. Critically evaluation of the audit reports for 2016 and 2017 The various audit reports that are being issued by the auditor can be segregated intofour parts. They are as follows:a)Clear/ unqualified-This report suggests that the entity has prepared its financial statements following thestatutory requirements and the guidelines issued by several governing authorities. Itfurther suggests that the financial statements of the company reflect the true and fairview of the financial performance and the position FO the entity (Morland et al.2017). In addition to that, the cooperation of the management with the auditor hasbeen excellent and no restriction whatsoever was placed on the independence of theauditor.

AUDITING3b)Qualified report-This suggests that the financial statements of the company had some misstatementsand the management of the company refused to rectify the same. This states thatcertain elements of the financial statements do not show the true and fair view of thefinancial performance and position of the company. In addition to that, it alsosignifies that some restrictions were placed on the independence of the auditor duringthe performance of his duties (Berg and Moré 2016). c)Adverse opinion-This suggests that the financial statements of the company do not show the true andfair view of the entity and the quantity of material misstatement in the financialstatements is immense. In addition to this, it also reflects that there was significantrestriction placed on the independence of the auditor while he was pursuing his duties.d)Disclaimer of opinion-This is the worst audit report of all. This suggests that the financial statements wereprepared in such a way that the auditor was not able to authenticate majority of thetransaction. In addition to that, the management did not cooperate with the auditor atall. No significant and appropriate information was shared with the auditor and t wasnot possible for the auditor to conduct the audit at all. Hence, the auditor refused toplace any comment on the financial statements of the company (Cohen and Jackson2017). In respect of the financial statements prepared by the company following are theopinion given by the auditor respectively for the year 2016 and 2017. Deloitte has conductedthe audit of the company. 2016:

End of preview

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

Related Documents
Auditing and Assurance
|29
|10383
|77

Audit Assurance and Compliance Assignment
|12
|3229
|420

Report on Audit Memorandum and Audit Process
|7
|1296
|124

(PDF) Auditing and assurance
|23
|6468
|57

Auditing and Assurance Assignment on Woolworths Company
|11
|1925
|305

Professional Auditing: Audit Plan for Konekt Limited
|17
|3814
|299