Audit, Assurance and Compliance Analysis: Financial Risks

This report provides an in-depth analysis of audit, assurance, and compliance, focusing on the financial data of DIPL. It begins by exploring the utilization of analytical procedures, such as benchmarking and ratio analysis, to assess the company's financial performance. The report then identifies significant risk factors stemming from DIPL's business operations, including issues related to management, workload, and potential fraud. It highlights the impact of these risks on the company's financial statements. Finally, the report discusses two key fraud risks within DIPL's operations, particularly those related to the implementation of a new accounting system and the pressures associated with financial reporting. The analysis draws on various financial statements and industry research to support its conclusions.

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
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Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................2
Answer 3..........................................................................................................................................2
Reference List..................................................................................................................................3

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Answer 1
Utilization of Analytical Process: During the time, spent building up the audit design of
DIPL, diagnostic procedure of the money related data gives a noteworthy help. Then again, audit
design gives the vital rules and bearings to the examiners at the season of audit operations. On a
more exact note, audit design encourages the inspectors to keep up the audit cost in a specific
restrain and to quit misconception with the audit customers. Logical approach of the money
related data of DIPL alludes to the way toward spreading the budgetary data from various
monetary presentation of the organization.
Accountants and budgetary experts can utilize different thing lines from the monetary
articulations and the additionally can check their base of arrangement for the organizations. For
instance, the enlistment procedure of different highlighting and money related things in the
budgetary reports like resources, net liabilities, proprietor's value and others can be mull over
alongside examination of deviation of them from the ordinary circumstance. One of the major
butt-centric cal procedures of budgetary data is Benchmarking and this procedure can be utilized
for the examination of organization's audit design. With the assistance of benchmarking process,
difference in the money related reports of the organizations can be spotted and the real reasons
for the event of these changes can be resolved with the assurance of main driver of these
fluctuations. Aside from the benchmarking procedure, Ratio Analysis is considered as a
noteworthy scientific procedure of money related data of the organizations. Apportion
examination is particularly useful in the correlation of the money related reports of two or many
organizations with a specific end goal to build up the audit design (Jans et al. 2014).

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Clarification: The embraced expository methodologies of the organizations to examine
the budgetary data has critical impact on the improvement of audit arranging procedure and this
is important for spreading the monetary data among the different bureaus of the organizations.
For instance, as a result of the Current Ratio investigation of DIPL, it can be seen that in the
money related year 2013, 2014 and 2015, the present apportion of the organization are 1.42, 1.46
and 1.5 separately. As another case, Profit Margin can be thought about as a piece of benefit of
the organization. From this benefit investigation, it can be seen that in the year 2013, 2014 and
2015, overall revenue of DIPL were 0.068, 0.60 and 0.06 separately. This examination of benefit
uncovers the measure of net salary earned against the measure of net offers of DIPL. What's
more, this investigation of benefit gives the accountants and money related examiners with the
view that whether the costs of the organization are low or high. Aside from this, it likewise helps
the accountants and budgetary experts to comprehend the adequacy of the organization's
financial plan alongside the prerequisite for organization's extension. The investigation of
proportions is a noteworthy apparatus for the auditors of DIPL.
Answer 2
Risk Factors: Some significant risk factors can be raised from the business operations of
DIPL. As indicated by the contextual investigation, it can be see that the records or
administration of the organization has precluded various business exchanges of DIPL. This
procedure has an immediate connection with the irregularities in the arranging of different
advertising and deals exercises of the organization. As per the investigation of different money
related proclamations and reports of DIPL, it can be seen that the organization has neglected to
accomplish the focused on benefit level from deals income. The principle reason is the
incontinency and incapability of the organization's administration in the business operations.

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Consequently, it can be seen that the organization has neglected to gauge the effect of different
small scale and large scale financial elements that have consequences for the business operations
of DIPL like monetary, political and social elements. Therefore, one might say that the poor
income and net revenue of the organization prompt the natural risks (Hayes, Wallage and
Gortemaker 2014).
In addition, the representatives of DIPL have quickly expanded the measure of this
inalienable risk. The level of inalienable risks of the organization's increments because of the
absence of experienced capability and demonstrable skill of the workers as the achievement of
the organizations limitlessly rely upon their representative's execution. As the unpractised and
wasteful workforce of DIPL will undoubtedly commit errors, the intrinsic risks will be expanded.
As per the contextual investigation of DIPL, complexities can be found during the time spent
progression of CEO of the organization. Subsequently, this procedure prompts the expansion in
inalienable risks in the association. Major intrinsic risks can be found in the ineffectual
procedure of choosing the progression of CEO of the organization. Aside from this, it can be
seen that DIPL do not have enough number of workers for the treatment of their business
operations. This reason additionally prompts the expansion in natural risks in the business
operations of DIPL. In this manner, from the above talk, it can be seen that these are the real
reason of the expansion in natural risks in DIPL's business operations (Nalewaik and Mills
2016).
Clarification: It can be seen that there is unreasonable workload on the representatives
of the organization. This exorbitant workload prompts the poor accounting of the organization
and this issue prompts different income issues, inadequate working result, incapable liquidity and
dissolvability position of the organization and others. Aside from this, risk of fraud can be found

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in the money related proclamations because of the absence of legitimate understanding. In such
manner, the administration of DIPL has a huge part to play. It has been seen that the
administration of DIPL needs honesty and responsibility and therefore, they are experiencing the
worry of loosing notoriety in the business group. High motivating force structure for
administration makes over the top weight on the administration and it prompts material errors in
the monetary proclamations and reports (William Jr, Glover and Prawitt 2016).
Answer 3
Recognition and Explanation of Two Fraud Risks: In the business associations, fraud
risks can be considered as one of the significant risks for the business organizations. In case of
the business operations of DIPL, the real risk that can be occurred from the business operations
incorporates the engagement of the specialists in various types of deceitful. This can be occurred
because of disappointment of the representatives. As per the given contextual investigation of
DIPL, it can be seen that there is a huge weight from the finish of the leading group of the
organization for the appropriation of another accounting framework. The appropriation of this
new accounting framework makes a colossal weight on the workforce of the organization and
this weight light adds to extortion.
Aside from this, another real extortion risk is the fraud during the time spent money
related announcing. High risk of inadequate money related declarations can be found in the event
that unreasonable budgetary desires can be seen from different partners for the statement of
monetary declarations. Moreover, on the off chance that the declaration from the organization's
administration to meet certain particular execution target and in the event that specific focus of
the objectives for the obtaining of specific obligations. As per the money related proclamations

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of DIPL, it can be seen that there is an expansion of income of the organization from the year
2013 to 2015.

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Reference List
Arens, A.A., Elder, R.J., Beasley, M.S. and Hogan, C.E., 2016. Auditing and assurance services.
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Beasley, M.S., 2015. Auditing cases: An interactive learning approach. Prentice Hall.
Cannon, N. and Bedard, J.C., 2016. Auditing challenging fair value measurements: Evidence
from the field. The Accounting Audit.
Duncan, B. and Whittington, M., 2014, September. Compliance with standards, assurance and
audit: Does this equal security?. In Proceedings of the 7th International Conference on Security
of Information and Networks (p. 77). ACM.
Hayes, R., Wallage, P. and Gortemaker, H., 2014. Principles of auditing: an introduction to
international standards on auditing. Pearson Higher Ed.
Jans, M., Alles, M.G. and Vasarhelyi, M.A., 2014. A field study on the use of process mining of
event logs as an analytical procedure in auditing. The Accounting Audit, 89(5), pp.1751-1773.
Knechel, W.R. and Salterio, S.E., 2016. Auditing: Assurance and risk. Taylor & Francis.
Nalewaik, A. and Mills, A., 2016. Project Performance Audit: Capturing the Value of Audit,
Oversight, and Compliance for Project Success. CRC Press.