Tutorials Assessment

This report is based on different tutorial questions related to auditing and categorized into different weeks. It covers topics such as providing advice on accounting policies and standards, auditing annual financial reports, strengthening internal controls and corporate governance practices, checking compliance with company policies and regulations, identifying risks, and understanding different financial ratios.

Tutorials Assessment

Contents
INTRODUCTION.......................................................................................................................................4
WEEK 1......................................................................................................................................................4
(a) Providing advice on accounting policies and accounting standards...................................................4
(b) Auditing annual financial report........................................................................................................4
(c) Providing assistance to management and the board in strengthening internal controls and corporate
governance practices...............................................................................................................................4
(e) Checking compliance with company policies and legislative regulations..........................................5
WEEK 2......................................................................................................................................................5
Two primary threats to independence......................................................................................................5
Appropriate safeguard to address............................................................................................................5
WEEK 3......................................................................................................................................................6
Identification of risk................................................................................................................................6
WEEK 4......................................................................................................................................................6
General meaning of each ratio.................................................................................................................6
WEEK 5......................................................................................................................................................7
Weakness in purchase and payment function..........................................................................................7
Recommendations to overcome from weakness......................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
Audit is an inspector's evaluation or verification of numerous accounting records relating
to physical stock levels checks to ensure that all government agencies implement a publicized
fiber content of exchanges. It is done in order to determine the integrity of the organization's
economic assertions. This report based on different tutorial questions which are related with
audition and categorized into different weeks.
WEEK 1
(a) Providing advice on accounting policies and accounting standards
The Australian government set particular policies and standards for the every type of
organisation that require following by any business. It helps to all the organizations to operate
their business activities in smoothly manner. The Australian Accounting Standards Board
(AASB), an independent government agency, sets the accounting standards in Australia. The
accounting standards are highly similar to IFRS criteria, while this AASB has made some
changes to such guidelines and has provided increased definitions and guidelines to suit the
particular regulatory and business climate of Australia, or to meet the design disclosure laws of
enterprises including such non-profit organizations (Patriarca and et.al, 2017).
(b) Auditing annual financial report
Auditing financial statements: An assessment of the financial statements is intended to
add transparency to a company's reported financial status and results. The financial services
authority demands that all large businesses file inspected annual reports with that as well.
(c) Providing assistance to management and the board in strengthening internal controls and
corporate governance practices
Internal controls on corporate governance (internal controls) play a critical role in
maintaining a company's sustainability and avoiding money laundering. Internal control
operations maintain correct company performance entail: Board-by-board tracking. Internal
audits and sturdy policy. The top leadership within each company named is accountable for

executing internal performance and risk mitigation in compliance with accepted rules and
concepts and reports directly periodically on the sector, risk ability and threat position of the
business, in compliance with both the governance structure of an organization.
(d) Providing assistance with the establishment and training of internal audit teams
Internal audit's function would be to provide improving energy that the systems of threat
administration, governance, and corporate governance work efficiently within an institution.
(e) Checking compliance with company policies and legislative regulations
The purpose of this Compliance planning is to protect the identification and sufficient
mitigation of regulatory requirements. Compliance is characterized as compliance to legislation,
along with the rule of the constitution, legislation, commonly recognized practices, standards,
and rules of ethics in the financial sector.
WEEK 2
Two primary threats to independence
There are identified two primary threats that faced by the SKM’s such as:
Data breaches: The main threat for SKM to data misuse by the other people who are related with
the auditor. As a result all the personal information are spreading out of all the clients.
Dissatisfied clients: When all the information are sing by another people so it will direct impact
on client and they are not dealing with the SKM (Ren, and Chao, 2016).
Appropriate safeguard to address
For this required to company focus on every activities and aware for the security of all
the clients who are related with the business in direct and indirect manner. The password is not
share with every one otherwise it impact in negative manner.

WEEK 3
Identification of risk
As an auditor identify different risk that arise in the company at the time of auditing such
as:
(a) Inherent risk is heightened. The debtor speculates in exchange rate which can cause
deterioration in exchange rate. Further, the difficulty of foreign exchange rate accounting raises
the likelihood of mistakes. Due to the treasurer's select may decrease control risk if he presents
extra internal controls, there is without proof of this in the matter. If there is indeed an
implementation model of obligations between some of the finance manager and the treasurer that
removes burden from the overstressed finance officer, this would have the opportunity to
decrease the control risk, thus lowering the audit risk.
(b) For the second scenario there is also an inherent risk identified. Whether the assets will be
destroyed or reassigned has yet to be decided. If that's the situation then it is not able to ascertain
the exact meaning of the closure clauses. Investments need to be objectively measured because
there may be mistakes and inaccuracies.
(c) Inherent risk is heightened. Binding incentives to registered sales raises the risk of fake
transactions being handled by transactions workers, making selling to unpredictable consumers
or exploiting transactions between times to raise their incentives.
(d) In this case occur Control risk because there s required minor modification.
(e) There is occurred inherent risk that was not easily controlled by the company.
WEEK 4
General meaning of each ratio
Current ratio: The current ratio is a financial ratio, which calculates the willingness of a
business to meet quick-term or due commitments once per year. It informs market participants
how well a corporation should increase its capital assets in its balance sheet to meet its existing
debt ratio.

Receivables turnover ratio: Accounts receivable turnover is the amount of times a
company receives its total accounts receivables per annum. The value is utilized to calculate a
government's capability to grant payment effectively to its clients and to fundraise by them in a
reasonable time (Longxia, Gongxuan and Anmin, 2016).
Net profit ratio: The amount net profit is the proportion that after-tax gains to net
revenues. It discloses the remaining income after all manufacturing, management, and interest
expense have been computed separately and accepted tax rates. This can also be used to equate a
firm's performance with its rivals.
Inventory turnover ratio: Inventory turnover is a measure that indicates however many
periods a firm has expended and change parameters in a specified timeframe. A business will
then calculate the times by turnover ratio equation to measure the times it requires for the
product to be sold on stock.
Return on total assets: Total Asset Return (ROTA) is a ratio that calculates the earnings
per share of a corporation in relation to its total asset. That ratio is seen as a measure about just
how efficiently a business uses its assets to produce income.
Conclusion: As per the analysis all the ratio it is analyzed that current ratio of the
company is decreased in the year of 2017 as compare of 20196 that create audit risk in the
business. The ability reduces of the company to generate cash which is not good for company.
All remaining ratio are god and shows good position.
WEEK 5
Weakness in purchase and payment function
The internal weakness may be:
1. Purchase requisition should be conducted by the division who wants to raw materials.
Stores should not voluntarily problems purchase requisition unless that knew how much
material require to purchase (Hay and Knechel, 2017).
2. The Payment department takes longer procedure to approve the purchase department.

Recommendations to overcome from weakness
To overcome from these weakness require to purchase department direct connect with
payment department and check all the details on their level. It helps to less longer procedure and
supports to all departments.

REFERENCES
Books and Journal
Patriarca, R. and et.al, 2017. The Functional Resonance Analysis Method for a systemic risk
based environmental auditing in a sinter plant: A semi-quantitative
approach. Environmental Impact Assessment Review. 63. pp.72-86.
Ren, Y., Shen, J., Zheng, Y., Wang, J. and Chao, H. C., 2016. Efficient data integrity auditing for
storage security in mobile health cloud. Peer-to-Peer Networking and Applications. 9(5).
pp.854-863.
Longxia, H., Gongxuan, Z. and Anmin, F., 2016. Privacy-preserving public auditing for dynamic
group based on hierarchical tree. Journal of Computer Research and
Development, 53(10), p.2334.
Hay, D. C. and Knechel, W. R., 2017. Meta-regression in auditing research: Evaluating the
evidence on the Big N audit firm premium. Auditing: A Journal of Practice &
Theory. 36(2). pp.133-159.