Audit and Assurance Services Report - Finance, University Name

This report delves into audit and assurance services, using Jersey Limited, an Australian fashion retailer, as a case study. The first part of the report critiques Jersey Limited's current management system, highlighting weaknesses hindering its business expansion. It identifies issues in areas such as human resources, logistics, and customer service. The report then proposes strategies for improvement, including setting goals, developing action plans, and empowering employees. The second part focuses on audit evidence, audit assertions, and related risks, particularly concerning warranty provisions. The report explores how to meet audit assertions and mitigate risks, providing a comprehensive analysis of audit and assurance principles in a practical business context. It offers valuable insights into financial management and organizational improvement.

Running head: AUDIT AND ASSURANCE SERVICES
Audit and assurance services
Name of the student
Name of the university
Authors note

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Executive summary
The above study discusses two aspects. In the first part, the study talks about the current
management system of jersey limited to Australia which is known as a famous company of
fashionable clothes retailing and manufacturing. However the current management policy is
not satisfying and is not suitable for the company after going for business expansions. In the
second part the audit evidence has been discussed to meet the audit assertions, risks of audit
assertions and warranty provision.

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Table of Contents
Introduction....................................................................................................................3
Discussion......................................................................................................................3
Answer to question 1..................................................................................................3
Develop the plan to achieve any goals.......................................................................8
Empower the employees............................................................................................9
Answer to question no 2...........................................................................................10
Assertions of audit....................................................................................................11
Relating to the transactions class.............................................................................11
Relating to the assets, liabilities and equity balances..............................................12
Related to the presentation and disclosures.............................................................13
Risks of audit warranty provisions...........................................................................17
Conclusion....................................................................................................................18
References....................................................................................................................19

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Introduction
The above case study topic describes the main weakness of the fashion clothing stores
in jersey limited of Australia. Since the fashion industries are one of the promising sectors of
Australia and almost every people around the world specially the youths are very much
concerned about fashion. However currently the industry is facing specific issues with the
management which are directly affecting the growth of the company. The second case study
is related to the auditing of sweet sounds limited. The study report had also discussed the
main audit assertions related to the company, along with the audit risks associated with it.
Discussion
Answer to question 1
The fashion industries are one of the core areas to consider nowadays. This area
provides more opportunity and lucrative business prospect overall. The current generation is
very much concern about clothing and garments to look stylish. Similarly the jersey limited
in one such organisation which is doing the business effectively from a more extended
period. The company offers a wide range of fashionable garments to the customer for selling
purpose. The company had also acquired the right amount of profit over the years, and thus
they are looking to expand the business. Hence for this issue they have hired good amount of
store staff most of whom are younger people. However the company management does not
have any well-structured management system due to which the number of attrition rate has
increased overall. Thus it has become a big concern for the company. The fashion industries
of Australia have faced specific issues which are needed to be rectified and taken actions to
improve the same (Blandón, and Bosch, 2013). The fundamental problems related to the
current management system are as follows-

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Currently the company is dealing with specific issues related to the management
control of the company. Since the company management is thinking of expanding the
business, it is essential to have an effective control system both in internal as well as external.
The weakness of the organisation is related to all the features, factors, resources and the
internal procedures which had adversely affected the financing, actions, responsibilities and
process of organization at the operative and tactical level. Hence consequently the weakness
restricts the effectiveness of organisational objectives implementation and the limits and
success range. Thus the organisation with more weakness rather than strength cannot focus
over performance of the company in ranging the development of the organisation. Therefore
to perform broader range of the operating activities it is essential for the company to adapt
situations to determine threat. The company managers could look to implement different
strategies liked defensive strategy, mini-mini strategy in such case. Thus to cope with the
market strategy and the growing market opportunities to determine dominating weakness
turned into the challenge with some general meeting but have provided the opportunity to
deal with ambiguity for the managers to perform the overall analysis (Kinney et al.2013).
Area of knowledge and human resources
Jersey limited of Australia has faced specific problems in the areas of expertise and
human resources. Since the education and human resources both are considered as an
essential aspect to growing the business overall. Hence the weakness that the company faces
in this area are as follows-
 Low level of employee competency, lack of knowledge using ability and
technologies.

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 The management system had limited the free knowledge share, employees act
according to the principle of “more knowledge leads to more power” and to retain
more relevant information to themselves.
 . the company staffs are not ready to absorb and obtain knowledge to perform task.
 Dissatisfied workers and employees about the current working conditions, payment
system and social work problem could lead to high level of staff turnover.
 The executive does not care of the personal grooming of the employees. Thus there is
a lack of preparation to develop the competency of skills.
 The employees are not ready to learn new things and explore the new areas as a
whole.
 The employees are not risk takers, and the failures are strictly punished. Thus the
actual job atmosphere is hampered.
 Corrupt race amid the staffs looks to pleasure each other employees as latent
employees have affected productivity as a team and restricted to achieve particular
achievements.
 The location of the area could be also considered as a down moral aspect, and it
affects negatively over the mindsets and productivity.
Areas of logistics, production, technology and development
 These are considered as another critical area where there is a need for continuous
research and development. Thus it is essential to manage to meet all the required
needs and aspects so that the employees feel motivated as a whole. Hence the
weakness related to this aspect are as follows-
 Resistance management and the employment and the gaining of new technologies and
the operation into making.

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 Little suppleness in regulating productivity procedure, which helps to change
requirements of the clients and request fluctuation which could be looking to
implement in the long run.
 Frequent change of suppliers and the problems related to the supply quality, lack of
price stability of the cloths and garments.
 The suppliers’ problems are related to the lack of proper mechanisms and spare parts.
 Absence of patient and endangered symbols.
 Locational organisations to the distance from the raw resources.
 Problems with the appropriate implementation of orders, long waiting time for
implementation of the construction measurements.
 I do not involve the employees to generate ideas.
 The lack of management’s desire to implement the useful ideas created by the
employees and not even looking at it properly. Thus demotivating the employees in
the process.
Sales and customer service areas
 Lacking the sales representative could result in long term waiting time for the
direct contract.
 Narrow assortment range which does not parallel to the varying needs and
customer preference.
 Stumpy level of client gratification due to service excellence.
 The regulars have gone to the competition due to the high price and poor quality.
 The organization had not considered any market research based on customer
needs and request. Hence the company does not take care of the customer's
opinions.

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Finance areas
 The company have limited accessibility to the internal source of financing.
 Lack of systematic process to control the cost and planning material around the
rank presented to the management are outmoded and universal. Hence they do not
allow to make any sort of useful changes to the control.
Hence these are the problems which have been faced by the jersey limited in the field of
Managerial improvements to the organisation. Thus it is the only reason why the company
management is facing issues with the existing systems of the organisation.
Suggested implementation
For the betterment or worse, people managers take the single most noteworthy
impression over the overall recital, and to the extent to the process it is essential for the
organisation to have better management from the authority point of view. Hence the
administration needs to perform effectively to launch the useful performance index which is
validated and assumed to be true for the process. Therefore there is an essential link between
the management behaviour, employee engagement, and in turn towards the performance and
retention.
After spent of a year or so it is essential to the company to focus over the management
development, performance and engagement and to break out the old setups to welcome new
one. It is how the management could look to bring specific changes to their management
perspectives. Similarly for the jersey limited also it is essential to imply specific changes in
the overall management process. Hence these changes are as follows-
Identifying the most important behaviours

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The features of management efficiency smear crosswise most of the company,
accurate insights come from recognising the efficiency to use most of the companies; thus the
process aligns with the organisational task, philosophy, client needs and to implement the
tactical boxes. After benchmarking different management growth initiatives and conduction
of interior examination of presentation appraisals and appointment action though holding
large operative emphasis groups to comprehend the manager's effects both optimistic and bad
impacted. Hence the management of the jersey limited also have to follow the aspect related
to the management behaviour overall to fulfil the company requirements.
Setting an appropriate goal
The goal setting is an essential aspect of the management viewpoint. It helps the
employees to provide overall priority towards the needs of management activities as well as
to focus over their goals. Thus by setting the whole goal setting it is also essential to turn
them into smart goals which are specific, action-oriented and realistically high. Hence these
goals have to be meaningful to the employees as well as sufficient to the goals achievement
as well as to meet individual results. Therefore these aspects will let the company
management to be ensured about the purposes and need for achieving the same. On the other
hand these aspects will allow the company management to restructure the overall procedures
and look for further improvements. Similarly the jersey limited also need to set an
appropriate goal and to focus over the same for the betterment of the company (Titera 2013).
Develop the plan to achieve any goals
After making the goals with the employees it is needful to create an effective method
for them. Thus to accomplish any individual goals the employees need to commit a set of
actions. A goal without any type of policy will not turn into reality. Most of the company
don’t understand to break the large projects, goals or tasks into some innovative steps. Thus

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as a manager the experience and knowledge to guide the employee. Keep several actions
from becoming overwhelming and at the same time by limiting them to what extent the
employee can reasonably accomplish within the limited time frame. It is essential for the
company to meet the urgent and necessary step to follow time management. Lastly the
company need to organise specific meetings to keep an update over mechanism and creating
an effective way to meet the management requirement. The employees need to report over
the employee progress and always ask for feedback to help them to overcome the obstacles.
The third segment has to set some dates and times for completion. Similarly the management
of jersey limited needs to check and always keep an eye over the performance of the
employees. Since the business of the company has been increased, thus it is essential for the
management to keep an eye over the employee performance and take feedback from the
administration.
Empower the employees
To meet the profits which could look to maximise the company goals are to empower
them. This empowerment techniques are based on three aspects like-
 Firstly to train the workers to do the tasks effectively to achieve the company goals. It
includes giving the employees enough time to practise new and practical skills to
make them efficient.
 Secondly to motivate the people. Apart from this there is a need, and consequences
for failure should be specified. But it is to be kept in mind that the environment which
relies solely on the rewards and recognition which will only be dependable to the
dysfunctional culture. Hence the employees fear to conduct any mistakes overall.
Thus the process could look to implement the long term productivity (Knechel and
Salterio 2016).

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Finally it is essential to remove the roadblock that is within the companies control. It
is needful that the people have the tools, equipment information to meet the need of the jobs.
Hence those roadblocks are to be removed for the sake of the companies to develop specific
adequate controls. Thus the jersey limited could also look to implement the same technique to
maintain precise effective management control within the organisations.
Answer to question no 2
Main audit assertions for sweet sounds
The audit assertions help to create a value representation made by the management both in
the form of implicit and explicit way while awarding the fiscal announcements and to
maintain the value correctness of the company.
The check declarations are also recognised as the organisation and monetary declarations
assertions.
Explanation
In preparation of financing declarations, management is making unspoken and clear rights
regarding the declarations, concerning the credit, dimension and staging of the company
“assets”, “liabilities”, “equities”, “income” and “expenses” as well as the disclosures with an
appropriate monetary reportage outline (Byrnes et al.2018).
For instance, if a “balance sheet” of an unit which had shown the carrying amount of a
certain amount and the company auditor will that the organisation has claimed that-
 The buildings recognised in the “balance sheet” existed in the period.
 The object owns and panels those structures.
 The buildings are appreciated precisely according to the useful measure of the
company.

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 All the buildings have owned and adroit by the object is related to that carrying
amount.
Assertions of audit
The central claims of the review are as follows-
Relating to the transactions class
Occurrence
This process is related to the transactions recognition in the company monetary
accounts which have occurred or is associated with the article. For example the salaries and
wages of sweet sounds limited happend during the period is concerning the personnel
employed by the body. Hence the salaries and wages expense of this company is not included
in the workforce system of any unauthorised staffs.
Wholeness
The dealings that had been imaginary are to be chronicled and recognised in the
company “financial statements”. For example the “salaries and wages” cost is in respect of all
the workers have been entirely accounted for.
Accurateness
The transactions have been logged accurately at their appropriate amounts. For
example the salaries and wages cost of this company has been accounted for the tax
deductions and the adjustments made in this process which have been correctly acquiescent
and accounted for.