Comprehensive Audit, Assurance, and Compliance Report for DIPL

This report provides a comprehensive analysis of audit, assurance, and compliance for DIPL. It begins by exploring the utilization of scientific techniques in analyzing financial report data to establish an audit plan. The report then clarifies how these techniques impact audit planning decisions. The second part of the report identifies inherent risk factors arising from the nature of DIPL's business operations, assessing how these risks may influence the risk of material misstatement in the financial report. The third section identifies and clarifies two key misrepresentation risk factors, including errors arising from fraudulent financial reporting. The report examines the impact of excessive workload on employees, external pressures to meet financial targets, and the potential for fraudulent activities. The analysis incorporates various factors such as environmental aspects, past material misstatements, and CEO succession complexities. The findings highlight the importance of staff competency, proper financial record-keeping, and accurate valuation methods to mitigate risks and ensure the integrity of financial reporting. The report concludes by emphasizing the importance of identifying and mitigating misrepresentation risks to prevent significant financial losses.

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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Table of Contents
Answer to Question 1:.....................................................................................................................2
Utilization of scientific techniques to the financial report data of DIPL.....................................2
Clarification of the way the outcomes impact arranging choices for the review........................3
Answer to Question 2:.....................................................................................................................4
Distinguishing proof of inalienable risk factors that emerge from nature of business operations
of DIPL........................................................................................................................................4
Risk and way it may influence the risk of material misquote in the financial report..................6
Answer to Question 3:.....................................................................................................................7
Clarification of the way the risk factors distinguished................................................................9
Reference List................................................................................................................................11

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Answer to Question 1:
Utilization of scientific techniques to the financial report data of DIPL
Scientific procedures to the financial report data of DIPL can help in building up the
arrangement of review. This arrangement of review can be thought to be a specific rule that
should be taken after at the season of undertaking the review. Specifically, this helps the auditor
in keeping up expenses of review at a sensible level and helps with turning away misconstruing
with the customer base. Systematic way to deal with the financial statements of the firm DIPL
alludes to the procedure of dispersal of the data from the financial announcement of the firm.
This procedure of assessment can be done by using an assortment of components. Be that as it
may, by utilizing a scientific approach of breaking down financial statements, distinctive
accountants and also financial experts can interpret data keeping in mind the end goal to help in
landing at indispensable business choices.
Explanatory approach of regular measuring helps in breaking down the financial
revelations to a typical reference point. This thusly helps in contrasting the financial articulations
as far as various timeframe or else as far as various organizations. Auditors can think about the
diverse line of things said in the financial report, check their method for revealing. For instance,
the method for enlisting things, for example, net resources or else net liabilities alongside
proprietors' value in the financial revealing of the firm and the look at the deviation from the
typical. Benchmarking that is viewed as a systematic method can be used for dissecting review
design. Difference of genuine financial announcement from the benchmark helps in perceiving
the deviation and helps with examining the reason for the recognized change to decide the
underlying driver.

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Likewise, proportion examination can be considered as a proper logical approach that can
be utilized for contrasting financial revelations and surveying design of review.
Clarification of the way the outcomes impact arranging choices for the review
The consequences of the arranging choices for the review arranging is essentially affected
by the aftereffects of the investigative approach received for scattering data from the financial
articulations. For instance, results of the proportion investigation to be specific, current
proportion of the firm DIPL are ascertained to be 1.42 of every 2013, 1.46 of every 2014 and 1.5
out of 2015. Once more, productivity proportion that is the overall revenue ascertained to be
0.068 of every 2013, 0.60 of every 2014 and 0.06 of every 2015. This productivity proportion
can uncover the state of the net wage earned by the firm when contrasted with the net offers of
the firm DIPL (Duncan and Whittington 2014). Be that as it may, this also can help the auditor to
comprehend whether costs are low or else high and whether the administration of the firm has
the necessity to abridge spending plan and in the meantime exhausts of the firm.
The ideal or else horrible changes in the proportion can be utilized as a factor of reference
for appraisal/review of the soundness of the financial wellbeing and general financial state of the
firm DIPL. Once more, for example, the utilization of dissolvability proportion figured to be 0.62
out of 2013, 0.44 out of 2014 and 0.21 of every 2015 aides in comprehension the alluring and in
addition undesirable patterns in the financial state of the firm. Correspondingly, correlation of
the proportion over the three year time frame can help in understanding whether the general
stream of financial of the partnership is sufficiently sufficient to meet both the short and also
long haul liabilities of the enterprise DIPL. The auditors can comprehend the relative position of
the firm finished the three year time frame and dissect the factor that prompted the undesirable or
else negative state of the partnership (Nalewaik and Mills 2016).

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Answer to Question 2:
Distinguishing proof of inalienable risk factors that emerge from nature of business
operations of DIPL
Accordingly, there are a few critical factors in evaluating that includes rate of material
misquotes in the financial declarations of a particular concern. In any case, it can be therefore
verify that there are diverse types of precise alongside unsystematic risks that mirror the path
towards financial misquotes in the financial announcements of companies. In any case, the
identified dangers may potentially be because of both financial and also non-financial variables
that in the end can turn away a particular company for mirroring a valid and reasonable
perspective of appropriate financial revelations. All things considered, an evaluator may maybe
think that it’s requesting to distinguish certain risks. William Jret al. (2016) opines that
recognized dangers may well be connected to various dangers related to exclusion alongside
dangers of assorted blunders that is inconceivable for a particular clerk. Fundamentally, this can
be viewed as the innate risk that may emerge from nature of business operations of DIPL.
As indicated by the given research, it can be therefore verified that there are various
exchanges that are especially discarded by the accountants generally the administration of the
partnership DIPL. In any case, this can consecutively coordinate lead towards irregularities
especially attributable to the incapable arranging of basically the advertising alongside deals
exercises. Besides, assessment of the financial affirmations of the firm additionally uncovers the
way that the firm has neglected to finish the favored benefit level from the income from deals
(Hayes2014). Especially, this may be because of the administration disappointment of the firm in
recognizable proof of particular prerequisites and resulting modification of the functionalities of
the organization. In this way, it can be thus presumed that the business association has neglected

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to break down various smaller scales and additionally large scale financial aspects that may
maybe be in presence as financial, political alongside social components. This is consequently
reflected in the poor deals figure of the firm and prompted various inborn dangers (Arenset al.
2016).
Aside from this, the specialists of the firm DIPL have additionally heightened the general
innate dangers. Because of absence of experience and capability of workers in the organization,
the inborn dangers of the partnership have raised considerably. This is on account of
achievement of a particular business concern relies upon the competency of the individuals from
the staff. The non-capable workforces can upgrade the characteristic dangers since they will
undoubtedly confer mix ups for example, the blunders of prohibition that further leads the path
towards the misquoted financial declarations (DeFond and Zhang 2014)
Once more, other critical aspects that contribute towards the inalienable dangers can be
classified into various areas particularly, natural alongside outer features, material misquotes in
past periods alongside misrepresented activities. Distinctive ecological aspects that direct the
route towards natural risk contains quick adjustments in which there may be issues related to
valuation of stock, hardened rivalry in the non specific market alongside lack of satisfactory
capital (Knechel and Salterio 2016). In addition, the organization additionally attempt material
misquotes that may maybe coordinate towards intrinsic risk in the forthcoming time frame.
Assessment of the present instance of DIPL mirrors the way that the complexities and
also challenges engaged with the procedure of progression of CEO likewise includes inborn risk.
Basically, progression of CEO can be thought to appear as something else and the hopefuls are to
a great degree individual (Louwerset al. 2015). Notwithstanding, there are a few risks that are

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inborn during the time spent progression of CEO, nature of strategy of determination together
effortlessly of change as process is taken care of. Along these lines, beginning of the procedure
without consenting to the system, starting the procedure late, insufficient inclusion of the CEO
and flight of applicants leaving the organization may potentially prompt natural risks.
Investigation of the given case uncovers that the procedure of usage of the novel IT
framework created certain issues. DIPL did insufficient number of staff to deal with the
procedure of execution and establishment and do the compromise and in addition testing
basically before the new game plan preceding the finish of the year. In this manner, this
prompted the material misquote attributable to innate components that is fundamentally mistake
or else exclusion in a particular financial assertion (Eilifsenet al. 2013).
Moreover, the recording of the financial receipts by the fund experts of the organization
may maybe prompt inalienable risks if not appropriately dealt with. The individuals from the
staff need to take after an appropriate succession with the goal that records receivables are
legitimately enrolled and debt claims record should be appropriately kept up. Moreover, the bank
compromise additionally should be legitimately recorded consequently (Cannon and Bedard
2016). Once more, enrolling the income produced from the digital book, assessing republication
of course readings if required in the up and coming period can prompt various natural dangers
because of many-sided quality associated with the procedure. In addition, procedure of valuation
of various crude material stocks at especially normal cost was not reasonable since the present
cost of paper was impressively over the normal cost.
Risk and way it may influence the risk of material misquote in the financial report

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The recognized inalienable risks can be considered as the helplessness of a specific
attestation in relationship to material misquote. Over the top weight on representatives and
administration: - Excessive workload on individuals from the staff of the partnership prompts
poor accounting. This prompts certain ascribes in particular affinity to experience income issues,
poor working results alongside poor liquidity (Barton and Bruder 2014).
 Risks of blunders or else off base distortion: - There remains unwavering quality and
complexity inferable from dangers of mistakes and in addition deception at the same
time.
 Uprightness of the whole administration: - Management of DIPL basically needs
imperative trustworthiness and from there on they are likewise anticipated that would be
set up for notoriety misfortune in the whole business group (Beasley 2015).
 Uncommon weight on administration: - Sometimes it happens that there exists a
motivation for administration that prompts misstatement in the financial declarations
(Barton and Bruder 2014).
 Nature of element business: - DIPL additionally prompts development to major
financial alongside aggressive conditions. Once more, these features may influence the
general inalienable danger of business substance for investigating review arranging
structure in a compelling way (Beasley 2015).
Answer to Question 3:
Identification and clarification of two key misrepresentation risk factors identifying with
errors emerging from fake financial revealing

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 ID and also clarification of misrepresentation risk identified with material error
 As misrepresentation risk prompts impressive misfortunes of benefits inferable from
extortion. The disappointment of the workforce inferable from over the top workload of
the representatives can incite them to include in extortion. Furthermore, desires from
various speculators to report particular financial results or especially by administration to
achieve particular execution targets prompts high misrepresentation risk. There likewise
stays solid weight to proclaim particular financial results in an offer to turn away
producing the assurances.
 The real misrepresentation risks that may happen attributable to the operations of the firm
DIPL incorporate workforce takes part in false activities because of more elevated
amount of disappointment of representatives. The given contextual investigation on the
operations of DIPL notices that there stays colossal weight from especially the board to
gain a novel bookkeeping framework. This over the top weight on the representatives to
complete the procedure of establishment of the updated IT framework for bookkeeping
may prompt extortion. This infers the workers may take part in false exercises and handle
the method of compromise in a disgraceful way and along these lines material misquote.
The contextual investigation additionally represents that the inappropriate treatment of
the procedure of execution of the usage of the data innovation for the bookkeeping
framework prompted despicable allotment of specific exchanges around the finish of the
year. This thusly may prompt misfortune because of material misquote and
misrepresentation risk.
 Another misrepresentation risk that may happen incorporates the risks of financial
detailing extortion. When there is intemperate desire from outside lenders to proclaim

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particular financial declarations or else from administration to meet particular execution
targets or else to meet certain objectives to fit the bill for procuring obligation, there stays
high danger of dishonorable financial declarations. The announcement of financial
position of the organization DIPL demonstrates that the income of the organization has
expanded over the period 2013 to 2015. What's more, the gross benefit and additionally
the net benefit have likewise expanded. Moreover, the present resources and aggregate
resources of the enterprise DIPL has likewise heightened. Notwithstanding, the
contextual analysis uncovers that amid the year 2015, the organization has procured an
advance adding up to 7.5 million especially from BDO Finance. Other than this, the
contextual analysis likewise mirrors the way that this specific credit has a particular
advance assertion that requires DIPL to keep up a present a present proportion of around
1.5 alongside an obligation value of roughly lower than 1. This demonstrates this
prerequisite may pressurize the organization to keep up the financial proportion so they
can obtain the credit. Thusly, this may prompt false activities and prompt inappropriate
impression of financial position. Basically, disappointment of the organization to keep up
the unequivocal benchmarks can again make the organization non-qualified to get fund
from BDO Finance.
Clarification of the way the risk factors distinguished
As indicated by the given case, it can be thusly expressed that procedure of valuation of
various crude material stock at especially normal cost was not appropriate since the present cost
of paper was impressively over the normal cost. Danger of distinguishing deceitful activities
associated with usage of the better IT framework can be completed by observing distinctive

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exercises at various stages. The danger of financial revealing can be recognized via completing
assessment of financial proclamations by auditors, observing control instruments now and again.

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Reference List
Arens, A.A., Elder, R.J., Beasley, M.S. and Hogan, C.E., 2016. Auditing and assurance services.
Pearson.
Barton, H. and Bruder, N., 2014. A guide to local environmental auditing. Routledge.
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 Review.
DeFond, M. and Zhang, J., 2014. A review of archival auditing research. Journal of Accounting
and Economics, 58(2), pp.275-326.
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.
Eilifsen, A., Messier, W.F., Glover, S.M. and Prawitt, D.F., 2013. Auditing and assurance
services. McGraw-Hill.
Hayes, R., Wallage, P. and Gortemaker, H., 2014. Principles of auditing: an introduction to
international standards on auditing. Pearson Higher Ed.
Knechel, W.R. and Salterio, S.E., 2016. Auditing: Assurance and risk. Taylor & Francis.
Louwers, T.J., Ramsay, R.J., Sinason, D.H., Strawser, J.R. and Thibodeau, J.C., 2015. Auditing
& assurance services. McGraw-Hill Education.

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Nalewaik, A. and Mills, A., 2016. Project Performance Review: Capturing the Value of Audit,
Oversight, and Compliance for Project Success. CRC Press.
William Jr, M., Glover, S. and Prawitt, D., 2016. Auditing and assurance services: A systematic
approach. McGraw-Hill Education.