Solved Assignment on Auditing

Running head: AUDITING
Auditing
Name of the Student:
Name of the University:
Authors Note:

AUDITING2
Executive summary:
In the present, report the different aspects that might affect the business of BML Ltd. The
main objective of the report is to find the weaknesses in the internal control of the company
and also illustrate the remedial measures that can be taken for the same. The task will be
achieved by analysing the various information already available like the financial ratios and
the additional information.

AUDITING3
Table of Contents
Introduction:...............................................................................................................................4
Analysis of the ratios and the additional information................................................................4
Analysis of the ratios and the additional information to determine the risks faced by the
company:....................................................................................................................................9
Internal controls that are effective, risks that they alleviate and the test of control to check
them..........................................................................................................................................10
Identification of the weaknesses in the internal control for contract payroll:..........................12
Conclusion:..............................................................................................................................13
Reference..................................................................................................................................15

AUDITING4
Introduction:
In the following report, all the financial and non-financial aspects of the company will
be analysed properly. After the results of the analysis are obtained, an effort will be made in
respect of recognising the weakness in the internal control of the company (Leung et al.,
2014). After the recognition of the risk in the internal controls of the company is achieved,
the procedures for alleviating them will be listed out.
Analysis of the ratios and the additional information
Account Analysis Audit risk Audit steps to
reduce risk
Plant and
equipment
The plant and equipment of the
company had to face a
remarkable amount of
obsolescence. It is because of
the fact that the kind of
equipment required by the
industry substantially changed
over the period of last 18
months. Computer aided
machinery took the place of old
machinery. Hence, the major
shift has drastically affected the
plant and equipment
requirement of the company
(Hay et al., 2017). The company
is in dire need of replacing its
Some of the various
risk involved in the
reporting of the
financial statements of
the company include
factors like reduction in
the market share of the
company, the
obsolescence of the
equipment used by the
company and many
more.
The company faces
significant risk in
respect of the policy
adopted for the
One of the
many steps
that can be
taken up by
auditor is to
reduce such
risk is to
physically
verify the
assets. This
will ensure the
determination
of the revenue
generation
capacity of the
assets in the