Auditing Assignment: ACT504, Semester 1, Materiality and Controls

This auditing assignment solution addresses key concepts of materiality and internal controls. It begins by defining materiality as per AASB standards and its significance in financial statements, explaining how misstatements can impact investor decisions. The solution then delves into ASA 320, detailing how auditors assess materiality using quantitative and qualitative thresholds. The assignment also analyzes the impact of withdrawing accounting standards like AASB 1031, and the continuing importance of materiality in audit decisions and planning. Further, the assignment identifies and discusses five internal control weaknesses in supplier relationships, computerized systems, and cash handling, providing insights into how these weaknesses can lead to material misstatements in financial reports, and proposing solutions to mitigate these weaknesses. The assignment concludes by referencing all sources.