Scope and Materiality in Audit Report 2022

Running head: AUDITING
AUDITING
Name of the Student
Name of the University
Author Note

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AUDITING
Table of Contents
Introduction................................................................................................................................4
Overview of the Company.........................................................................................................4
Section No 1...............................................................................................................................4
Scope and Materiality in Audit..............................................................................................4
Review of Company Disclosure.............................................................................................6
Section No 2...............................................................................................................................6
Analytical Procedure in company business............................................................................6
Section 3...................................................................................................................................10
Analysis of Cash Flow Statement........................................................................................10
Review of Auditor report.....................................................................................................11
Conclusion................................................................................................................................11
Reference and Bibliography.....................................................................................................12

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Introduction
Audit process should be carried by the company so that it will able to have proper
accounting statement which will help them to gain proper amount of investors in the
company. Company should can have proper rules and regulation in regard of preparation of
financial statement so this will help them to gain more clarity to the financial user of the
company. Auditor is one who different audit procedure which will help them to get more
clarity about the company business so it able to gives its opinion properly about the company
so the user is able to know how the company is able to perform in the market. Auditor is able
to check the company internal control system properly so this will help the auditor to know
about the business risk which is there in the company and how the company is able to meet
the business risk properly and effectively. The report show about the company materiality in
the business as if the company is having more amount of materiality than this will affect the
overall business financial statement. It also show about the company financial aspects which
help them to know about the company performance in the business.
Overview of the Company
The report is based upon the company QUBE HOLDING LIMITED, which is an
Australian Company and carry its operation in Australia (Qube.com.au. 2019). The company
deals in logistics and infrastructure-based business, the company was founded in 2010. It had
its headquarter in Sydney, NSW.
Section No 1
Scope and Materiality in Audit
The part of the report show about the materiality in the business financial report, as
the company is able to have proper financial report so that the user is able to gain proper
knowledge about the financial statement in then business. Materiality is the error or omission

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AUDITING
which happen due to human nature and effect the company financial statement as there is
some kind of error in the financial statement than this will directly affect the true and fair
view of the company financial report (Qube.com.au. 2019). The auditor have to ascertain the
amount of materiality which is there in the company financial statement as this will help them
to gain proper information of company risk and it will able to carry the audit process as per
the need of the business risk in the financial statement.
Auditor should able to have proper assertion in company materiality as it let auditor to
know the different procedure in company business, so this should auditor priority to give
more importance about the materiality in the business. Company should give there
assumption about the company business risk as this help the auditor to ascertain the risk in
the business more easily and effectively. Auditor have to plan the total materiality so this will
help them to know the risk which is associated in the financial statement, auditor have to
ascertain the materiality by considering the financial report, as it can calculate the materiality
by keeping in base of the total asset, sales and equity in the business (Qube.com.au. 2019).
As per the business, the auditor is able to take the total asset for the basic of calculation of
planning materiality in the business. The planning materiality help the auditor to ascertain all
the company aspects more easily in the business. The planning materiality is shown below:
Planning Materiality=Total Asset∗5 %
¿ $ 4035
¿ 5 %
¿ $ 201.75
The above calculation of the planning materiality as this will help the auditor to make proper
assumption in regards of risk which is associated in company financial statement, so the
auditor should able to have proper amount of assumption in the assertion of risk in the