Audit & Assurance: Credibility, Steps, Independence, Objectivity, Threats

Audit & Assurance

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
(a) Audit credibility & steps which are related for accounting profession:................................1
(b) Discuss the following situations in the context of the independence of the auditor, showing
clearly the principles involved....................................................................................................3
(c) Concept of external auditors and internal auditors................................................................3
(d) Threats to objectivity.............................................................................................................4
QUESTION 2...................................................................................................................................4
(a) Procedures to be taken in regard of uncorrected misstatement.............................................4
(b) Going concern indicators.......................................................................................................5
(c) Going Concern Procedures...................................................................................................6
(d) Some going concern disclosures...........................................................................................7
QUESTION 3...................................................................................................................................7
(a) Audit risk and their types.......................................................................................................7
(b) Audit risk and auditor's response...........................................................................................7
(c) Identify the main areas, other than audit risks.......................................................................8
(d) Difference between an interim and a final audit...................................................................9
(e) Procedure of interim audit and impact of final audit.............................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Auditing is a procedure of analysing of business entity's financial records to review when
they are accurate as per the any applicable rules, regulations and laws. From other organisations
auditor come to analysis accounting and financial records after that provide independent opinion
in regard of such records. Assurance is procedure of analysing and used in the assessment of
business accounting transactions as well as financial records (Sukma and Bernawati, 2019).
Audit & assurance is more than the numbers and based on attesting to achievement and
difficulties that supports to ensure about strong foundations for potential aspirations. On the basis
of Audit get greatest level assurance in the context of business's financial statements that fairly
presented that depend on the application of generally accepted accounting principles. This report
based on the Audit & Assurance in which cover various topics like credibility of auditor in
regard of independence, concept of objectivity, internal auditor of ACCA, safeguards of
objectivity and potential indicators of going concern.
QUESTION 1
(a) Audit credibility & steps which are related for accounting profession:
Audit credibility is related with the ability of external auditor as per the auditing activities
and behave with honesty as well as objectivity. In the opinion of other people it is coordinated
with auditors with legit independence.
 Independence: The auditor independence is based on the internal as well as external
auditors from clients having financial interest in regard of audition of entity. The
requirement of independence is related with different objective approaches during the
audit procedure.
 Integrity: This term related with the audit in which auditor should manage coordination
with different departments to manage their corporate financial and professional relations
effectively. It is not only use for honesty but also for trustfulness and dealing effectively.
 Objectivity: It is based on the different aspects that requires to present independent
views during the audition procedure (Atkins and Ritchie, 2019).
 Professional competence: It is concerned with abilities of auditor in which analysis
competencies effectively and their duties in professional way for the presentation of
particular task with applying skills with relevant quality.
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 Confidentiality: The factor mainly necessary for the auditor that should not present
confidential as well as personal information of customers with other except client's
consent.
 Professional behaviour: There are consisting of imposition of key liabilities of an
auditor to do compliances in regard of previous mentioned relevant guidelines, laws &
regulations.
There are including different steps in regard of accounting relation has been taken such
as:  Audit committee: This committee prepare by the auditor in which including those persons
whose main liabilities to assist auditors to stay independent from management. Such as,
committee should analysis auditors opinion in different manner due to different conflicts
overseeing them (Mantelaers, Zoet and Smit, 2019). Size of audit firm: It is essential aspect that are presenting independence for auditor that
are scale for the audit business. The integrity based on the auditor speciality that are
based on the audit accuracy. In the large entities that makes certain things in regard of
impartial quality for audit services that focus on the stronger analysis of facilities that are
reliable for financial services. Moreover there are using modern technologies for
qualified employees who are able to conduct large business audit and relate with small
company audit.
 Competitiveness degree in audit service sector: It presents outer impacts that are affecting
on the independence for auditors. The clients are quickly procure different services for
other audit and different organisation can work for highly competitive market that have
trouble staying autonomous.
Tenure of audit firm that meets the interest of particular client
This term based on the business activities and require to meet with the specific client's
audit requirements. A long relationship mainly based on the organisation and financial institution
that mainly occur in close of identification of business with clients requirement and make it
impossible because of company is considering to take independent action (Boiral, Heras-
Saizarbitoria and Brotherton, 2019).
Auditing size and non auditing fees
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