This report presents a practical audit scenario analysis of Harvey Norman, focusing on the company's historical financial statements. It begins with an analytical review of the company's solvency and profitability ratios, comparing 2017 and 2018 data to identify trends and key areas of concern, such as declining profit margins and EPS. The report then outlines significant areas to focus on, including the reduction in profit before tax and strategic decisions impacting financial requirements. Subsequently, it details the audit procedures to be performed, including test checks, asset verification, and the use of CAAT, along with the importance of compliance with accounting standards. The report also reviews corporate governance aspects, highlighting the existence and composition of the audit committee and its importance to stakeholders. References to annual reports and audit reports support the analysis, providing a comprehensive overview of the audit scenario.