Auditing Report: Risk Assessment and Analysis of Crowdspark Limited

This report presents an in-depth auditing analysis of Crowdspark Limited, formerly known as Zulu Limited, focusing on risk assessment, financial analysis, and the application of key audit procedures. The report identifies and evaluates various risks, including inherent, detection, and control risks, as well as market, credit, and liquidity risks. It utilizes financial ratios to assess company performance and determines materiality by considering factors such as the nature of the company and the value of transactions. The report identifies material accounts like cash, receivables, and property, and links them to specific audit assertions such as valuation, completeness, and existence. Sampling techniques, including judgmental and random sampling, are also discussed. Finally, the report concludes with a summary of the findings and provides a list of relevant references.

HA3032 AUDITING

• Auditing has been carried for the Crowdspark limited.
• There has been consideration of the various risks which are
involved.
• Calculation of the ratios will be made for performance evaluation.
• The misstatements which have taken place will be identified and
considered in the report.
• The identification of the material accounts has been made.
• The assertions which are applicable and with the sampling
methods have been taken into account.
INTRODUCTION

COMPANY OVERVIEW
• Crowdspark is a technology and media company.
• It was earlier identified as Zulu limited.
• The company is situated in Australia.
• Various activities are undertaken such as brand
publishing, information services, marketing and
distribution services.

AUDIT RISK
The process of the auditing is performed to cover various risks and
identification of them is to be made. They are as follows:
• Inherent risk
• Detection risk
• Control risk

RISKS IN CROWDSPARK LIMITED
The risks are involved in all the business and the major
among them which are involved in company are as follows:
• Market risk
• Credit risk
• Liquidity risk

FINANCIAL ANALYSIS
There is the calculation of the ratios under analytical
procedure by which performance evaluation is made. The
main results are as follows:
Ratio Formula 2015 2016 2017
Net profit margin Income/sales *100 -1931.44% -589.33% -409.70%
Current ratio Current assets/current liabilities 1.93 2.14 2.75
Debt to equity Total debts/ Equity capital 0.33 0.38 0.64
Total asset turnover
ratio
Revenue / Total assets 0.10 0.23 0.43

MATERIALITY
Materiality is an important concept in which the most
important elements and accounts of the business are
considered. They are identified by covering various factors
which are:
• Nature of the company
• Value of the transaction

MATERIAL ACCOUNTS
The material accounts which are identified in given company are:
• Cash and cash equivalents
• Restricted cash
• Accounts Receivables
• Property plant and equipment
• Trade and other payables
• Loans and borrowings
• Deferred tax liability

AUDIT ASSERTIONS
The assertions are involved in the evaluation of the
material accounts which are identified. There are
various assertions and some of them are:
Valuation
Completeness
Existence
Right and obligation

SAMPLING
Sampling is used to evaluate the transactions as it is not
possible to consider all of them. There are various
approaches which are used and they involve:
Judgemental sampling
Random sampling method
Selective sampling

The risks which are involved have been taken into consideration.
The relation among various risks is ascertained by audit risk
model.
Performance of the company is evaluated by ratio analysis.
Material accounts and their related assertions and procedures
have been accounted for.
The appropriate sampling techniques for all the accounts have
been identified.
CONCLUSION

REFERENCES
• Bloomberg. (2019) CrowdSpark Ltd. [Online] Available at:
https://www.bloomberg.com/profile/company/CSK:AU [Accessed 22 Sep.
2019]
• Budescu, D.V., Peecher, M.E. and Solomon, I. (2012). The joint influence
of the extent and nature of audit evidence, materiality thresholds, and
misstatement type on achieved audit risk. Auditing: A Journal of Practice &
Theory, 31(2), pp.19-41.
• Mock, T.J., Bédard, J., Coram, P.J., Davis, S.M., Espahbodi, R. and Warne,
R.C. (2012) The audit reporting model: Current research synthesis and
implications. Auditing: A Journal of Practice & Theory, 32(1), pp.323-351.