Audit, Assurance and Compliance Report: DIPL Financial Analysis

This report provides a comprehensive analysis of audit, assurance, and compliance practices within Double Ink Printers Limited (DIPL). It examines the company's financial performance through ratio analysis, including current, profit margin, and solvency ratios over a three-year period. The report identifies and assesses various risks, such as fraud risks stemming from employee dissatisfaction and the pressures of meeting financial targets, as well as risks related to the financial reporting process and the potential for manipulated financial statements. The analysis also delves into the inherent risks associated with DIPL's business operations, including weaknesses in management, staffing issues, and the impact of external economic factors. Furthermore, the report discusses the importance of a robust audit design in maintaining cost-effectiveness and preventing confusion with review clients, emphasizing the role of analytic procedures and benchmarking in evaluating financial information. Overall, the report highlights the importance of a systematic approach to financial data and its impact on the company's financial position and performance.

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................4
Answer 3..........................................................................................................................................6
Part A: Answer............................................................................................................................6
Part B: Answer...........................................................................................................................10
Reference List................................................................................................................................11

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Answer 1
In the method for setting up the review design of Double Ink Printers Limited (DIPL), the
investigative procedure related with money related information gives monstrous regard. As a
matter of fact, review design passes on the required orientation and principles to the evaluators in
the midst of the review operations. Precisely, review design engages the evaluators in keeping up
the cost of review in a particular purpose of containment for foreseeing confusion with the
review clients (Alam 2014). The legitimate approach related to the monetary information of
DIPL shows the system for spreading budgetary information from the distinctive money related
declarations of the association. The methodology for separating the budgetary information of the
associations could be brought out through a couple of frameworks.
With the help of analytic approach for assessing the money related information, the
accounting and monetary examiners of the association s could utilize such information for
undertaking particular budgetary and accounting decisions (Baylis et al. 2017). The ordinary size
logical approach enables in the system for dissecting the money related introduction of the
associations from the normal viewpoints. One of the fundamental favorable circumstances is that
it helps in growing help in separating the money related reports from various monetary courses
of occasions.
The accounting and monetary specialists could utilize various lines of things from the
budgetary reports and they could affirm their base of making arrangements for the associations.
For instance, the selection philosophy of different money related and accounting things in the
monetary reports, for instance, net liabilities, assets, proprietor's esteem and others could be seen

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as consolidated with evaluation of straying from the run of the mill circumstance (Brawley et al.
2015).
Benchmarking is the essential analytic system of money related information and this
methodology could be utilized for evaluation of the review design of the association. The
benchmarking system helps in recognizing the adjustments in the monetary reports of the
associations and the honest to goodness clarifications for the occasions of these distinctions
could be learned by perceiving the hidden driver of these changes. Other than the method of
benchmarking, proportion examination is pronounced as a significant logical strategy for
budgetary information of the associations. Proportion examination is hugely profitable in
separating the budgetary clarifications of no less than two associations for setting up the course
of action of review (Chambers and Odar 2015).
The grasped logical philosophies of the associations in surveying the budgetary
information has colossal effect on the change of the technique related to review orchestrating and
this is fundamental to spread monetary information among the differing agencies of the
associations. The going with proportions have been considered hence:
Particulars 2013 2014 2015
Current ratio 1.42 1.46 1.50
Profit margin 0.068 0.60 0.06
Solvency ratio 0.62 0.44 0.21
The above table implies that the present proportion of DIPL has extended from 1.42 out
of 2013 to 1.46 of each 2014 and it has extended further to 1.50 out of 2015. The net income of

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the association has been fluctuating consistently, which has helped in revealing the measure of
net benefit got rather than the net benefits (Cohen and Simnett 2014). Additionally, this
productivity examination gives the monetary inspectors and accounting with the view to choose
the employments of the association. In addition, it engages the money related evaluators and
bookkeeper s to get a framework of the practicality of the definitive spending design nearby the
necessity for business upgrade (Decaux and Sarens 2015).
The great and negative changes in the money related execution and proportions of DIPL
enable the inspectors to make an information about the current monetary position of the
associations. In this novel circumstance, the dissolvability proportion has been considered, which
has declined consistently. Such evaluation is valuable in choosing the charming or undesirable
example of the various leveled execution over the subsequent years. The intricacy of proportions
has its tremendousness in learning whether the present salary of the association is adequate for
meeting both without further ado and whole deal responsibilities.
Precisely, it could be communicated that the connection and appraisal of monetary
execution and proportions engages the money related agents and accounting for discovering the
relative budgetary position of the association over three-year time allotment. It enables in
deciding if the current monetary position of the association is appealing or not. In the event that
there ought to be an event of the last specified, the organization of the association is required to
endeavor healing exercises for reviving its general budgetary execution. Due to each one of these
reasons, the orderly technique identifying with money related information has basic regard
(Duncan and Whittington 2014).

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Answer 2
Certain risk segments could be raised from the business operations of DIPL. According to
the logical examination, the organization of an association has failed to enter diverse business
trades of the association. This technique has facilitated association with the inconsistencies in the
masterminding of different displaying and arrangements activities of the association (Earley et
al. 2016). The general budgetary examination did with respect to DIPL states that the association
has fail to complete the concentrated on level of advantage from the general arrangements pay.
The basic reason is the deficiency and inefficiency of the organization of the association in
business operations. In this way, it could be watched that the association has fail to gage the
effect of different scaled down scale and full scale money related segments having influence on
the business operations of DIPL like political, budgetary and social components. Therefore, it
could be communicated that the lower wage and general income of the association has realized
basic risks (Graham 2015).
Also, the staffs of DIPL have extended rapidly and in this way, the intrinsic risks has
extended as well. The basic risks level of the association ascends in perspective of the
nonattendance of cleaned ability and experienced capacity of the staffs. This is because the
achievement of a business is reliant, all things considered, on the execution of its staffs (Homb et
al. 2014). Due to such guilelessness and inefficiency of the workforce of DIPL, there is more
vital probability of natural perils, since the agents will without a doubt lead bungles. In
perspective of the given case of DIPL, the issues could be found in the movement strategy of
CEO of the association. Along these lines, such process has achieved climb in normal risks of the
association. The essential inherent risks could be found in the insufficient system for picking the
CEO movement of the association.

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Other than this, it could be watched that DIPL does not have satisfactory staffs for managing its
business operations. This reason has realized climb in trademark threats in the general business
working of DIPL. Consequently, from the above appraisal, it could be watched that these are the
basic reasons of the rising in regular perils in the business operations of DIPL (Jones and Beattie
2015).
Clarification:
It has been accumulated that there is high measure of workload on the delegates of the
association. The extending workload realizes poor accounting of the association and this issue
furthermore achieves different issues of pay, inadequate working results unfit dissolvability and
liquidity position of the association. Other than this, the peril of bungle could be depicted in the
money related verbalizations due to nonattendance of convincing comprehension. In this
remarkable circumstance, the organization of DIPL needs to expect a convincing part. It has been
watched that the DIPL organization needs obligation and uprightness and as a result of this
reason, they are encountering the stress of losing reputation in the business gathering. The more
vital propelling power structure related to organization shapes additional weight on organization
and it achieves material misrepresents in the money related reports (Levy 2015).
Answer 3
Part A: Answer
In the present business associations, blackmail chance is articulated as the essential risks
with respect to the same. Because of the occasion of such fake risks, the business associations

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oftentimes gain genuine misfortunes in its business assets (Martin, Sanders and Scalan 2014). In
larger piece of the conditions, the fundamental frustration could be seen among the workforce
and such dissatisfaction habitually compel them to take an interest in various sorts of fakes in
associations. Another fundamental reason of blackmail is the want of various money related
authorities of the associations. The associations routinely make ensures for achieving a specific
money related execution that adds to more unmistakable deception level (Nalewaik and Mills
2016).
Risk Types Recognition
Fraud risk- In the setting of the business operations of DIPL,
the crucial risks that could occur from its business
practices is the consideration of the staffs in various
sorts of fake activities. This could happen due to
disillusionment of the laborers. According to the
given occasion of DIPL, it could be watched that
there is huge weight from the bit of the main body
of the association to grasp another plan of
accounting. The determination of this new course
of action of accounting develops a considerable
weight on the workforce of the association and
such weight achieves coercion. Therefore, it could
be communicated that for adjusting up to the
bargain weight, the staffs may grasp false activities,
which would incite incorrect treatment of the
general framework achieving material blunders.

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According to the relevant examination, it could be
watched that the arrangement of inefficient
treatment of the utilization of new information
development realizes inadequate treatment of
couple of basic monetary and accounting trades
toward the total of the year. This general strategy
may realize loss of material misrepresentations and
budgetary information. Because of such freshness
and inefficiency of the workforce of DIPL, there is
more unmistakable shot of natural risks, since the
delegates will without a doubt coordinate
oversights. In light of the given example of DIPL,
the issues could be found in the movement strategy
of CEO of the association. Along these lines, such
process has realized climb in trademark dangers of
the association. The central natural risks could be
found in the inadequate technique for picking the
CEO movement of the association. It has been
watched that the DIPL organization needs
obligation and uprightness and as a result of this
reason, they are encountering the stress of losing
offensiveness in the business gathering.
Financial Reporting Process- Another noteworthy risks is connected with the
methodology of monetary itemizing. The more

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genuine danger of inadequate money related
articulations could be seen, if additional monetary
wants could be seen from different accomplices for
the budgetary disclosures. This is substantial in
cases of affirmation from the organization of the
association to achieve particular concentration of
execution and particular concentration of the goals
for commitment acquirement. In light of the
monetary reports of DIPL, it could be watched that
there is climb in wage of the association from 2013
to 2015. Other than this, there is climbing in net
wage and net pay of the association. In light of the
relevant examination, it could be communicated
that DIPL has acquired a credit of 7.5 million from
BDO Finance in 2015.
As showed by the relevant examination, it could be
watched that according to the comprehension of
progress, DIPL is required to keep up a present
proportion of 1.5 and commitment to-esteem
proportion underneath 1. The need of this particular
approach might be to make weight on the
association for repaying the credit according to the
agreed course of occasions. These necessities could
realize produced works out, since DIPL may

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control the money related announcements for
counterfeit depiction of the budgetary condition of
the association. If DIPL is not prepared to keep up
the required benchmark, the association would not
be fit the bill to get credit from BDO Finance (Pitt
2014).
Part B: Answer
In light of the given case, it could be watched that the methodology of valuation of the
rough materials of the association in perspective of ordinary cost is not reasonable and suitable,
since the present paper cost is over the typical cost. The basic risks in the disclosure of beguiling
activities of the staffs for executing new game plan of information advancement could be
perceived by checking the assignments in various articulations of occupations. Other than this
risks, the risks related with the method of money related declaring could be recognized through
evaluation of the differing monetary reports and clarifications of the associations regarding the
bookkeeper s and budgetary examiners through different control and descriptive instruments.
Such system of checking is required to be driven helpfully (Warren 2014).

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