Discuss the factors which would influence

Assignment Help Auditing

Reference no: EM13179933

TASK 1

Critically evaluate the risk-based approach to external audit with particular reference to the audit of Home Retail Group plc.

Note:

You should give examples of how you might collect evidence and assess the degree of business risk(obtaining an understanding of the entity and its environment and assessing the risks of a material statement) in the 2011 audit of the company and factors affecting the company's ‘control environment'.

Task 2

Identify those features of Home Retail Group plc's results fir 2009-2011 which might indicate to you as the external auditor that the company was facing going concern problems.

Note:
Use ratio to assess areas of audit risk analytically

Ratio examples:

Operating Profit margin ( % ), Operating Profit/ Total assets ( % ), Return on equity ( % ) EPS ( p. ), Interest cover ( times ), Gearing ratio ( % ),Current ratio ( : 1 ), Stock holding ( days ) Cash operating effic. ( % ), Free cash flow ( £M. )

Task 3

Identify any qualitative factors or information in the annual reports and accounts for Home Retail Group plc for 2011, including the report if the audit committee, that you as the external auditor would consider that might suggest that the company would be able to continue in business for the foreseeable future.

Note: Report of the audit committee e.g Movement on share, londonstockexchange.com

Task 4

Briefly outline the requirements of the UK version of ISA 700/ 750/ 706 and discuss the factors which would influence you as the external auditor in forming an opinion on the financial statements of Home Retail Group plc for 2011.

Reference no: EM13179933

Questions Cloud

Describe about owning a computerized accounting system : Describe about owning a computerized accounting system by (developing internally; purchased from 3rd party provider or purchased from 3rd party with company custom made features).

State sothermal compression until the pressure of the system : undergo an isothermal compression until the pressure of the system is four times the original pressure. The process may occur in two ways:

What happens in the home money and fx markets : What happens in the home money and FX markets if there is a temporary contraction in the home money supply? What happens in the home money and FX markets if there is a temporary contraction in the foreign money supply? What happens in the short ru..

Important to calibrate bimetallic thermometer every day : Explain the consequences of using improper temperatures when hot water sanitizing. Why is it important to calibrate a bimetallic thermometer every day?

Discuss the factors which would influence : Briefly outline the requirements of the UK version of ISA 700/ 750/ 706 and discuss the factors which would influence you as the external auditor in forming an opinion on the financial statements of Home Retail Group plc for 2011.

State the solubility product equilibrium constant ksp : On the assumption that the debye-Huckel limiting law applies, what is the value of the solubility product equilibrium constant Ksp for AgCl in such conditions?

State moles of an ideal gas in an initial state : moles of an ideal gas in an initial state T1 = 300 K and P1 = 0.5 bar undergo an isothermal compression until the pressure of the system is four times the original pressure

What does being retired mean and why do people retire : "Marcus is a 77-year-old retired construction worker who labored all of his life. He managed to save a little money, but he and his wife live primarily off on his monthly Social Security checks. What does being retired mean? Why do people retire? Wh..

Compute the equilibrium compostion : Calculate the equilibrium compostion when 1.00 mol N2 is mixed with 3.00 mol H2 in a 2.00 L vessel.

User Account

All Pages