Reference no: EM133068040 , Length: word count:1600

ACCT6003 Professional Auditing - Southern Cross University

Instructions:

After the review of half-year financial report, the engagement partner in charge of the assurance engagement has identified potential financial fraud and misstatements presented in the accounting records. Under this circumstance, the partner decided to ask you to conduct further substantive tests prior to year-end audit.

Answer the following questions:

Question 1: Comment and evaluate internal controls applied by the chosen company during the audit procedures to test the operating effectiveness of internal controls. Give two examples of internal controls applied by the selected company.

Question 2: Examine the techniques of testing controls that should be applied by the auditing firm. Given an example for each technique identified.

Question 3: Determine relevant substantive testing for THREE (3) accounts selected from balance sheet accounts of the chosen company, such as cash, trade receivables, inventory, property, plant and equipment (PPE), intangible assets, goodwill, investment, loan, payables, provisions, leases, long-term liabilities, equity, revaluation surplus, deferred tax assets, deferred tax liabilities. You should identify the objectives, substantive tests of transactions and account balances for each account identified. Refer to relevant ASAs or other resources.

Question 4: Prepare an auditor's opinion to the shareholders of the chosen company including two key audit matters if necessary. Refer to ASA 700 or other references.

This assessment is being able to obtain sufficient audit evidence and follow appropriate procedures, to evaluate the impact on audit opinions, reporting and application of the auditing standards. As such, a key requirement of this assessment is your ability to draw in relevant sections of certain auditing standards. The outcome of this assessment will be you presenting an appropriate audit opinion for the chosen company that is being audited. However, it is about more than simply quoting standards. It is about using the knowledge in those standards to apply them to your chosen company. That is, it is about applying your judgment! As such, every student's assessment will differ according to the issues that apply to their chosen company.

Reference:

• Harvard Referencing Style

Attachment:- Professional Auditing.rar