Audit Measures and Internal Control Mechanisms of Trunkey Creek Wines

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Auditing

Trunkey Creek Wines
Executive summary
In the corporate world, thriving amidst such immense and intense level of transactions is very
difficult for all the corporates because these paves a path in the generation of material risks
that can expose them to high dangers. This necessitates audit measures to take place so that
these risks can be effectively identified and the company can be safeguarded on a whole.
With the help of this report, the audit measures implemented within TCW (Trunkey Creek
Wines) Ltd has been taken into consideration. In other words, the auditing processes adopted
by this company has been discussed to determine whether the financials have portrayed a true
and fair view of its performance. Moreover, for such purpose, discussion on calculation of
ratios have been facilitated and thereafter, the audit risks encountered by the company has
also been highlighted. Furthermore, measures that can be adopted to avoid such audit risks
have also been discussed for enhanced understanding.
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Trunkey Creek Wines
Contents
Introduction...........................................................................................................................................3
1A. Evaluation of prime ratios and risks of the company......................................................................4
1B. Business risks that can be encountered by the company................................................................8
2A. Measures of internal control...........................................................................................................8
2B. Justification behind the weakness in internal control mechanism................................................12
Conclusion...........................................................................................................................................14
References...........................................................................................................................................15
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Trunkey Creek Wines
Introduction
In the modern world, audit processes are very vital on the part of corporates to thrive in such
complicated environment. This is because auditing assists in recognizing all material risks
that has made the entire business vulnerable in nature. Besides, it also assists in reflecting
whether the depicted financial performance of the company is true and fair. This makes it
clear that if proper auditing measures are not implemented by corporates, errors and frauds
are more likely to be observed in their financials. Thus, with this report, the auditing
measures adopted by TCW has been highlighted so that its material risks can be effectively
determined. For such purpose, the company’s internal control mechanisms have been
discussed that has played a key role in mitigating the harmful effects of material risks. This
assists in making it clear whether the company has been lawful and ethical based on the
recent requirements of a corporate’s functioning. Nevertheless, even if corporates have
proper risk management approaches within their affairs, the same must be effective and
appropriate in nature. In other words, no negligence in such matter must be entertained
because it can hamper the usefulness of such auditing measure. Thus, the internal control
mechanisms implemented by TCW has been relevantly discussed through this report to
evaluate the prevalence of material business risks in its framework of financial reporting.
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