L&J Audit Plan: Reliable Printers Ltd (RPL) Accounts Payable - 2019

This report presents an audit plan for Reliable Printers Ltd (RPL), a printing company, for the year ended June 30, 2019. The plan, developed by a student, focuses specifically on the accounts payable section. It includes an overview of the audit team, consisting of a main auditor, junior auditors, and a tax specialist. The audit plan outlines the objectives, procedures, and assertions related to accounts payable, such as verifying completeness, accuracy, and relevance of financial information. The report details the audit scope, nature, and timing, including the duration allocated for specific tests of control. The report references the case study notes from the textbook and provides insights into the audit process. The plan ensures compliance with auditing standards and helps minimize audit costs. This report aims to help students understand the auditing process.

Running head: AUDITING
AUDITING
Name of the Student
Name of the University
Author Note

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Executive Summary
The report shows the auditing aspects upon company financial statement. Auditor has to
analysis the risk that is associated in organization business. The report is based upon
organization RPL which is a printing-based company, its show the audit plan which the
auditor has made in regards of financial report. It also states the scope and nature of audit
upon the company financial report.

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Table of Contents
Introduction................................................................................................................................3
Audit Planning...........................................................................................................................3
Auditing Team...........................................................................................................................6
Audit Scope, Nature and Timing...............................................................................................7
Conclusion..................................................................................................................................9
Reference..................................................................................................................................10

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Introduction
Auditing is the inspection and examination of organization financial report to know
how the company is preparing its financial statement. Auditing process helps the users to
know in regards financial health of the organization (De Simone, Ege and Stomberg 2014).
Auditor has to carry many audit procedures in the company financial report to ascertain the
materiality in company accounts. Internal control should also be checked by the auditor that
shows how company is managing to reduce the business risk in the financial statement. The
reports show about the RPL as how the auditor has carried its audit process in the
organization financial report. It shows the audit plan which is made by the auditor related to
accounting payable of company financial statement. Auditing staff which is required by the
auditor to carry the audit process has also mentioned in the report.
Audit Planning
Audit Planning is the planning of the audit process which the auditor will carry upon
the company financial statement. These plans are made to ensure that all the essential points
have covered in the audit process. Auditor develops a proper strategy by preparing the audit
plan in the company business which helps it to carry all the process easily upon the company
financial reports. The scope, nature and time of audit is also mentioned in the audit plan.
Audit plan helps the auditor to follow all the required guidelines which are listed as per
auditing standard. It helps the auditor to get sufficient audit evidence from organization
financial report and also minimise the overall cost of audit.
The report shows the audit plan and procedure, which is created by an auditor in
regards to account payable of the company.
Audit
Objective
Audit Procedure Assertions Justification Impact on
Financial

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Statement
To verify
whether the
company has
given proper
disclosure or
not in their
financial
report
Auditor has to
analysis the
company
financial
information to
know how the
company can
provide
disclosure in the
financial
statement
(DeFond, and
Lennox 2017). It
can carry random
sampling which
will help the
auditor to
assertion the
materiality factor
in company
business and help
to know the risk
management
process carried by
Completeness –
Company should
record all the
information
correctly in their
financial report
(DeFond and
Zhang 2014). It
should verify all
the document to
know the
efficiency of
company in
carrying the
accounting
information in
their financial
statement.
The auditor will
able to ensure
that company
financial
statement is
showing true
and fair and no
materiality and
misstatement
are there in
company
business.
As if the
company has
materiality in
their financial
statement, then
it will provide
the wrong
information to
the company
financial user,
and as a result
they may take a
wrong idea
about the
company
financial health.

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the company.
To check the
efficiency of
company in
regards to
the
preparation
of ledger
account of
accounts
payables.
Auditor has to
carry audit trail in
regards to
company
financial
statement
(Furnham and
Gunter 2015). As
it has to choose
and trace general
ledger entries and
able to know how
the company can
carry its business
operation. An
audit trail will
help the auditor to
understand any
control weakness
in company
accounting
system and the
proper area where
company can
Accuracy –
Company should
prepare each
ledger account
accurately, which
will help the
company to
provide useful
information in its
financial
statement.
This audit trail
will help the
auditor to
ascertain the
efficiency of
company
accounting
system and also
helps to know
the process in
which a
company can
improve its
management.
Ledger
accounts are the
base of
company
financial
information, so
if the company
accounting
system is
having any
weakness than
the overall
financial
statement will
not show an
accurate picture
of company
financial health.

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improve its
compliance.
To know
whether a
company is
maintaining
the
accounting
year
principle or
not
The auditor needs
to examine all the
company
information to
know the cut-off
date of each
information. The
cut-off test is the
procedure which
helps the auditor
to know whether
the company has
recorded the
transaction in a
proper recording
period or not.
Relevance –
Company should
provide relevant
information only
in that the
accounting year
(Griffiths 2016).
As it should show
the auditor should
present the
information
which are
relevant for the
financial user and
no irrelevant
information.
Auditor by
using the cut-
off procedure
able to know
the accounting
period in which
the transaction
has taken place
in company
business
(Wang, Li and
Li 2014).
Company is not
able to maintain
proper
accounting
period as a
result; the
financial user
will not get
proper
information
about the
company
business
activities.
Auditing Team
Each auditing process carried by many individuals so they jointly termed as audit
team. The team consists of Main Auditor, Two junior auditors and one tax specialist.
Main Auditor – Principle auditor is the one who carries different procedure in company
activities. It is the one who signed the auditor report and checks whether all the members of
the team are carrying their activities properly in the business (Hall 2015). All the team

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members report to the principal auditor, and it only distributes the responsibility among the
team members. It has completed its CA and has an experience of 10 years in auditing; this
experience helps the auditor to perform its activity effectively in the business.
Junior Auditor – They are the one who is not having much amount of experience in regards
to the audit process. They carry all the audit process in the company with the guidance of the
principal auditor. As they are two junior auditors who help them to divide the responsibility
equally this helps them to save time as well as to carry proper audit procedure in company
business. One junior auditor has just completed it CA, and the other one is preparing for the
final exam of CA. Both the auditor is having an experience of 2 years in the field of audit.
Tax Expert – It is the one who knows tax and able to handle each matter related to tax. As
the company has many tax implications as the tax expert has proper knowledge which can
assists the auditor about how the organization is following all the tax implication in their
business. It has done master in taxation and having an experience of 5 years in regards to tax
audit of the company.
Audit Scope, Nature and Timing
It defined the amount of time which the auditor invests for carrying the audit process
upon the organization financial report (Knechel and Salterio 2016). The audit duration
signifies the quality of the audit as the more time auditor invest in company financial
statement; it goes more deeply in the process of company which increase the overall quality
of the audit. It should carry many audit processes in the organization financial statement, so
the scope helps the auditor to plan the audit process in the business.
Information
to be checked
by the
Test of Control Assertion Duration of
the audit

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auditor process
RPL’S
Warehouse
Register
The auditor should vouch
for the register as the
accounting clerk is
recording all the
information in the same
which will help it to know
whether proper recording of
information transferred or
not (Newton et al., 2015).
Completeness – This
process will make sure
that the company has
carried all the essential
information in their
financial statement
(Pizzini, Lin and
Ziegenfuss 2014).
The auditor
should invest
2-3 days for
the vouching
of company
warehouse
register.
New
Accounting
system
As the company has
changed its accounting
system, which will make an
impact on the overall
accounting information of
company business (Power
and Gendron 2015). The
auditor should make sure
that the system is working
correctly and company has
recorded all the information
in the new system.
Accuracy – As the
company has changed the
system which shows it
has to transfer all the data
in new system (Sandvig
et al., 2014). The
company should be
accurate which shifting
the information from one
system to another
The auditor
should invest
5-7 days for
the auditing of
company
system.

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Conclusion
On a final decision, the reports conclude as how the auditor carries the audit process
in company financial report. Auditor has to ascertain the materiality impact upon the
company financial reports. It has to verify all the document to know the amount of risk
associated in organization financial report. The report describes the company RPL which is a
printing company. It shows about the auditing plan as how the auditor plans its audit
procedure upon the organization financial report. The table shows different aspects of audit
plan and how the auditor carries its audit process in the company business. Lastly, the report
shows the scope of audit which is made by the auditor in regards to the organization.

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Reference
De Simone, L., Ege, M.S. and Stomberg, B., 2014. Internal control quality: The role of
auditor-provided tax services. The Accounting Review, 90(4), pp.1469-1496.
DeFond, M. and Zhang, J., 2014. A review of archival auditing research. Journal of
Accounting and Economics, 58(2-3), pp.275-326.
DeFond, M.L. and Lennox, C.S., 2017. Do PCAOB inspections improve the quality of
internal control audits?. Journal of Accounting Research, 55(3), pp.591-627.
Furnham, A. and Gunter, B., 2015. Corporate Assessment (Routledge Revivals): Auditing a
Company's Personality. Routledge.
Griffiths, P., 2016. Risk-based auditing. Routledge.
Hall, J.A., 2015. Information technology auditing. Cengage Learning.
Knechel, W.R. and Salterio, S.E., 2016. Auditing: Assurance and risk. Routledge.
Newton, N.J., Persellin, J.S., Wang, D. and Wilkins, M.S., 2015. Internal control opinion
shopping and audit market competition. The Accounting Review, 91(2), pp.603-623.
Pizzini, M., Lin, S. and Ziegenfuss, D.E., 2014. The impact of internal audit function quality
and contribution on audit delay. Auditing: A Journal of Practice & Theory, 34(1), pp.25-58.
Power, M.K. and Gendron, Y., 2015. Qualitative research in auditing: A methodological
roadmap. Auditing: A Journal of Practice & Theory, 34(2), pp.147-165.
Sandvig, C., Hamilton, K., Karahalios, K. and Langbort, C., 2014. Auditing algorithms:
Research methods for detecting discrimination on internet platforms. Data and
discrimination: converting critical concerns into productive inquiry, 22.

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Wang, B., Li, B. and Li, H., 2014. Oruta: Privacy-preserving public auditing for shared data
in the cloud. IEEE transactions on cloud computing, 2(1), pp.43-56.