Auditing Theory: Analyzing Key Assertions, Audit Evidence, and Risks

This report analyzes auditing theory, focusing on the DHL case study, which operates through three segments: Pellegrino Shores, St Neville's, and Acuity Vision. The report identifies business risks, particularly fraud, and their impact on financial accounts. Key assertions such as existence, completeness, and accuracy are examined in relation to revenue and cash balances. The report also addresses audit risks associated with a new billing system at St Neville's, including data loss and billing formula errors. Audit procedures, including reviewing bills and checking for arrears, are recommended. Furthermore, the report discusses control environments and the importance of internal controls to mitigate risks. The report also covers the testing of account payables, including completeness and accuracy, and discusses key assertions related to Pellegrino Shores, such as accuracy of employee payments. The report provides an overview of audit procedures to ensure the accuracy and reliability of financial reporting.