ACC300 Auditing and Assurance Assignment: Abundant Produce Audit Plan

This report presents an audit plan for Abundant Produce Limited, covering key aspects of auditing and assurance. Part A analyzes the company's background, including its financial performance, market capitalization, and management structure. It reviews the company's history and financial position and discusses the essential matters for planning the 2020 audit, such as prior-year review modifications and time frame management. Part B explores challenges in the auditing profession, focusing on technological disruptions such as changing technology, IT insecurity, lack of IT skills, big data analysis, and cloud computing. It further analyzes the impacts of these challenges, including data virtualization, formation of technology compliance policies, and the need to bridge the gap between IT and business, ultimately increasing the relevance of the auditing process to the public. The report provides a detailed examination of the company and the current auditing landscape.

Running Head; AUDIT
ACC300
Student’s Name
Institutional Affiliation

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Part A
(i)Facts about the company
1.According to past auditors Abundant Produce Limited is worth AU$4.9m, and all out yearly CEO pay
was accounted for as AU$96k for the year to June 2019.
2. The market capitalization and compensation gives investors a decent impression of the organization,
since most comparative size organizations need to pay more, leaving less for investors (Garcia-Blandon,
and Argiles, 2015, p.67). While this is something to be thankful for, there is need for auditors
comprehend the business better before framing the final summary and opinions.
3. Abundant Produce limited is not claimed by flexible investments. This means that it is not owned or
managed by hedge funds. Previous data proposes that there isn't any investigator inclusion of the stock,
so it is likely minimal known.
4. Historical growth
Abundant Produce Limited has expanded its earnings per share (EPS) by a normal of 31% every
year, throughout the most recent three years (utilizing a line of best fit). In the most recent year, its
income is up 21%.
Conversely, this is a positive outcome for investors, demonstrating that the organization has
improved as of late. It's a genuine positive to see this kind of development in an annual basis. That
shows a sound and developing business.
5. Management
.The CEO of Abundant Produce Limited is Tony Crimmins.

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Graham Brown Executive Chairman
Anthony Crimmins Executive Director
Adam Hajek Executive Director
Stuart Richardson Non-executive Director
Vince Logan Non-executive Chairman
(ii)
Abundant produce limited is typically a Sydney-put life sciences organization centered with
respect to the Abundant Natural Health brand. It was established in the year 2015. It involves a scope of
experimentally approved, Over-The-Counter nutraceutical items using 100% normal biologics and
minerals to give alleviation from body pain or tissue inflammation. According to history the companies
normally deals Abundant Seeds, which uses front line science to breed novel vegetable assortments
available to be purchased to the cultivation business. This business is presently considered non-center.
Abundant Produce Limited usually gives farm products and service delivery. The Company offers
nourishment yields, cucumbers, and tomatoes creation, just as research, development, and advancement
administrations. It normally directs its business in Australia (Milne & Gray 2013, p.89).The existing
market base opportunities are huge Abundant is as of now assembling clinical information for two key
signs such as pain.
Bottomless Natural Health keeps on building up its circulation channels, with; developing
Australian drug store take-up; US warehousing to support Amazon.com deals; a US retail technique
being developed; and a multichannel China cross-outskirt system including territory fortified
warehousing; all facilitating the way to customers.

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According to the auditor’s report for 28 September 2019, each particular investor in Abundant
Produce Limited ought to know about the most dominant investors. Establishments will frequently hold
stock in greater organizations, and we hope to see insiders owning an observable level of the littler ones
It performance over the years involves high Market capitalization. Abundant Produce is a littler
organization with a market capitalization of AU$4.9m, and insiders have AU$718k worth of offers in
their own names, therefore, it might at present be flying under the radar of numerous institutional
investors. According to the audit report released for 2019 it is quite evident that the responsibility for
organization shows that institutional financial investors have not yet obtained offers (Okeke, and
Aniche, 2013, p.98).
Institutional financial specialists frequently maintain a strategic distance from organizations that
are excessively little, too illiquid or unreasonably dangerous for their preferences. Yet, it's unordinary to
see bigger organizations with no institutional speculators. There are different clarifications for why
companies usually don’t claim a stock. The most widely recognized is that the organization is
excessively little comparative with subsidize under administration, so the institution doesn't try to take a
gander at the organization. It is likewise conceivable that reserve chiefs don't claim the stock since they
aren't persuaded it will perform well. The firm’s income and revenue track record may not be
convincing to institutional financial specialists — or they basically probably won't have taken a gander
at the business intently
The organization the executives answer to the board; indicating that the company management
highly represent the key interest of shareholders eminently, in some cases top-level administrators are on
the board, themselves.

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Most consider insider possession a positive since it can demonstrate the board is all around lined up with
different investors. Be that as it may, on certain events a lot of managerial power is focused within the
board.
Financial position
Cash and cash equivalents=$2, 6575,713
Net asset position=$2,890,083
Net loss after tax=$1.2m
The overall population holds a 46% stake in ABT. While this gathering can't really give orders, it
can unquestionably impact how the organization is run.
Question (iii)
Planning an audit usually comprise more aspects than juts acquiring business understanding and
performing assessment. There is need to address the following several matters for planning the audit of
the company for the year ending 30th June 2020.
1.The auditors for the company should check out any earlier year review modifications, inward
control proposals, or battles experienced during earlier reviews. These can be a beginning stage for self-
survey and a memory-jogger to protect these issues are not rehashed (Roussy & Brivot, 2016, p.114).
During the arranging meeting with the examiners, talk about what worked out in a good way during a
previous year’s audit and where there might be open doors for development or increasingly powerful
correspondence between the association and the evaluators.
2.There is need to address the issue of time frame during audit in order to engage all the
stakeholders and the track the company’s financial performance. Time is a critical matter as it involves

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proper preparation prior to the audit plan. The auditors should Survey the rundown of work papers and
timetables mentioned by the reviewers, trying to acquire explanation of mentioned data when vital.
Allocate everything from the rundown to a dependable individual and incorporate a due date. Make a
point to permit sufficient time for audit and adjustment of calendars if important. They should handle the
most troublesome, complex, or tedious tasks first whenever the situation allows. The drafts of the budget
summaries, calendars, work papers or different things mentioned by the reviewer ought to be accessible
at the very latest the primary day of review hands on work.
3.There is also need to ares the documentarian process matters before planning the audit for the
year ending 30th June 20120.the auditors should Make an archive of review plans that can be gotten to
in future years by the fitting work force. They must consider making subfolders for noteworthy
exchange cycles for example, money, income and receivables, costs and payables, ventures, fixed
resources, obligation, and so forth to make it simpler to oversee and recover plans. Calendars and work
papers containing delicate data, for example, finance, may should be secret key secured or kept up in a
suitably confined system area.
4.Another matter to be addressed before the actual, planning is the audit strategy involving the
outcome of the preliminary engagement operations and knowledge gained in the previous 2019 audit
report. This comprises addressing the matters involving initial assessments of materiality, risks such as
fraud and other significant events occurring at the firm. This will ensure that auditors properly review
the company plans or cash flow forecast.
5.There is also need to address the issue of low communications .Reporting requirements are crucial to
ensure liaison with component auditors and communication to the issue affecting the management.
Part B

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Numerous challenges and disruptions are facing the field of auditing. Most of the disruptions
tend to hinder the big agendas of the auditing process in any organization. In part A, the sources used
have indicated how technological barriers deter massive progress in auditing. Therefore, the essay
encapsulate fundamental technological challenges. Also, it includes disruptions that many auditors have
been struggling to fight in the field of business and auditing. Besides, the paper also contains the impacts
of the challenges faced in the assurance profession and auditing process.
(i)
Therefore, some of the technical difficulties or disruptions the auditing profession have been struggling
with for couples of years are;
The changing technology and infrastructure changes in auditing.
According to Brown, Marcum, and Stuebs (2017 p.34), technology is changing at higher rates.
Through this analogy, it means that the auditing profession has to comply with the emerging technology
in the world. Most of the time, it is problematic for the auditors to match with the changing technology.
The problem is that technology is inducing new auditing methods and strategies, which at some time, the
auditing professionals lack the appropriate skills to handle.
Increased issues related to IT insecurity and cyber security.
It is evident that IT, to some extends, lacks the issue of privacy. The cyber security has become a
significant debate not only to the auditing professionals but also in other fields such as economic, social,
and political enterprises in the world. The auditing professionals are thoroughly struggling with cyber
security to ensure that data analyzed is well protected from unauthorized personnel within the
organization.

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Lack of IT related skills
The auditing process is now electronically based in almost all organizations in the world.
Through this analogy, it means that most of the profession ought to understand IT-related skills (El-
Dalahmeh, 2017, p.65). Not all professionals can access or understand most of the IT-related concepts.
Through this process, it becomes difficult for the professions to use some of the useful and innovative
software facilitating auditing processes in companies.
Lack of competent IT-related software to analyze extensive data in the organization.
Big data has become one of the significant challenges disturbing the auditing professionals in the
companies. Most of the enterprise have extensive data that cannot be audited manually. Through this
analogy, it demands the technical experts to innovate adequate software that will help the professionals
to work effectively (El-Dalahmeh, 2017 p.65). Most of the auditing professionals have been struggling
to come up with efficient software, but all has been in vain.
Challenges induced by cloud computing
According to Pan and Seow (2016 p.90), cloud computing has affected both the auditing and
finance fields in business. Most of the verification professionals have been on the frontline fighting
issues related to cloud computing in the organization. Amongst these challenges facing the cloud
computing process in computing are the issue of compliance as well as data security measures. These
concepts do challenge auditing professionals when working within a specific organization.
(ii)

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From the disruptions identified, one can outline some of the challenges and opportunities incurred by
stakeholders in auditing and the assurance professions in the organization. Thus some of these
challenges or opportunities induced by technological barriers are;
Increased data virtualization in an organization.
According to Byrnes et al. (2018 p.23), this is one of the opportunities resulting from the
challenges discussed. It is essential to reduce the issue of cloud computing in the auditing process.
Through the problem, auditing professionals have identified the importance of data virtualization that is
more economical. The process ensures no data is at risk when auditing the reports and other related
concepts in business.
Formation of technology compliance policies
The increased issue of cyber security in the auditing process has impacted the business to form
strategies and regulations. There are many cybercrime rules protecting auditing and assurance
professions in the industry (Sroussi & Bouaud, 2016, p.56). This is one of the crucial opportunities since
it accords the issue of privacy. Through this, it becomes easy to reduce data loss when auditing.
Helping to bridge between the IT and business
From the challenges learned, the auditing professionals have tried to innovate new mechanisms
to connect business with technology. The analogy is that there is a lot of innovation in auditing fields
through the use of technology. These productive motions have been induced by the use of sophisticated
elements related to technology.
Increased relevancy of the auditing process to the public

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For the last three decades, most of the people have not been willing to pursue courses related to
auditing and assurance profession. The increased use of technology, as well as increased innovation, has
geared to educate the public on how the auditing profession is fundamental. The technology has tried to
simplify those complex processes incurred in auditing, thus encouraging more people to enroll in the
business.
Increased risk and laziness in the organizations
Arnold (2018, p.87) states how technology has resulted in auditing risks and negligence in the
organization. The professionals are not willing to work hard enough since they rely on the software to
run some roles. There is much risk, which has resulted in overdependence on the technology when
auditing reports. Besides, there is a risk if auditing data not well protected in computers and other
gadgets.
Therefore, technological challenges affect auditing professionals in an organization. The
increased risk associated with cyber security affects how auditors preserve the data analyzed. These
challenges have also resulted in opportunities as well as other drawbacks that affect the auditing and
assurance professionals in different ways.

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References
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