University Audit and Assurance: Case Study Report Analysis, ACC707

This report critically assesses audit and assurance practices through two case studies. The first case examines the risks of material misstatement in Computing Solutions Limited's inventory, focusing on valuation and existence assertions, and proposes substantive audit procedures like cutoff analysis and testing high-value items. The second case addresses intellectual property intangible assets of Beautiful Hair Limited, identifying valuation and accuracy, and classification and understandability as key assertions at risk, with suggested procedures including checking documentation and verifying initial value. Both cases incorporate the requirements of ASA 701 regarding key audit matters, emphasizing the importance of transparent communication and the auditor's judgment in identifying and reporting significant issues, such as inventory valuation and intangible asset valuation.