Explain how the risk factors identified

Reference no: EM131608235 , Length: word count:2000

Audit, Assurance and Compliance Assignment - Case Study on Double Ink Printers Ltd (DIPL)

Background Information

You are a senior manager with Stewart and Kathy and you have been approached to undertake the audit of Double Ink Printers Ltd (DIPL). For the year ended 2015, taking over from the small audit firm of Jay and Associates. DIPL print books, magazines and advertising materials for the publishing, educational and advertising industries on a print-on-demand basis. Printing on demand means that publishers can print the exact quantities ordered by retail outlets, rather than estimating in advance how many books are required and often printing too few or too many. The average printing turnaround time for DIPL is two business days for small orders and five to ten business days for large orders. In addition, five years ago, DIPL further expanded its earnings base by having publisher's titles available as searchable 'ebooks' that could be downloaded directly by readers from DIPL's website.

Required:

Question 1: As an auditor, you are conducting your preliminary analytical procedures based on the background information for DIPL contained in the case. Apply analytical procedures to the financial report information of DIPL for the last three years. Explain how your results influence your planning decisions for the audit for the year ending 30 June 2015.

Question 2: You are conducting your risk assessment of DIPL, as part of the planning for your audit for the year ended 30 June. Identify two inherent risk factors that arise from the nature of DIPL's business operations. Explain why it is a risk and how it may affect the risk of material misstatement in the financial report.

Question 3: As part of your audit of DIPL for the year ended 30 June 2015, you are considering the risk that fraud may have occurred (a) Based on the background information for DIPL contained in the case, identify and explain two key fraud risk factors relating to misstatements arising from fraudulent financial reporting to which DIPL may be susceptible. (b) Explain how the risk factors identified in (a) above would affect the conduct of the (a) audit.

Attachment:- Case Study.rar

Reference no: EM131608235

Questions Cloud

What is the authors purpose in writing the book : What is the author's purpose in writing the book. How successfully does the author accomplish her or his goals

Determine and analyse the bank liquidity risk situation : Determine and analyse the bank’s liquidity risk situation, between 2010 and 2011, by using traditional liquidity ratio analysis,

Write a program that prints the given patterns separately : (Triangle-Printing Program) Write a program that prints the following patterns separately, one below the other.

What type of stalker does this typify : What type of stalker does this typify? Provide two (2) supporting facts to justify your answer.

Explain how the risk factors identified : HI6026 Audit, Assurance and Compliance Assignment - Explain how the risk factors identified in (a) above would affect the conduct of the (a) audit

Is the online environment conducive to the given style : Critically reflect on the delivery of content in this course. How does it align with your own learning style? Is the online environment conducive to this style?

Best estimate of the company cost of equity : Stock in Country Road Industries has a beta of 0.92. If the stock sells for $30 per share, what is your best estimate of the company's cost of equity?

Aggregate supply aggregate demand model : Using an Aggregate Supply Aggregate Demand model and a few well-chosen sentences, explain why the unemployment created by cost-push inflation

Define youth that has affected you as an adult : Do a narrative essay about an experience from your youth that has affected you as an adult. What happened. What did you learn from the experience

Reviews

len1608235

8/22/2017 2:21:19 AM

Australian student, total 2000 words, This assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook. It is the responsibility of the student who is submitting the work, to ensure that the work is in fact her/his own work. Incorporating another’s work or ideas into one’s own work without appropriate acknowledgement is an academic offence. For further details, please refer to the Subject Outline and Student Handbook. Answer all questions.

Write a Review

Required(*) Message

User Account

All Pages