MA611 Auditing: Entry Requirements And Weighting

Requirements

For your approved company, having, as a minimum (see below), obtained the last two annual reports from your company’s website, complete the following requirements

Resultsof Analytical Procedures

Apply analytical procedures (simple comparisons and ratio analysis) to the financial report information of your company for the last three financial years. Explain how the results of your analytical procedures would influence your audit planning decisions for the audi t for the last financial year.

Riskof Material Misstatement (Inherent Risk) At The Financial Report Level

Discuss fully your company’s inherent risk at the financial report level for the five factors discussed in Gay and Simnett (2015, page 253-254); (a) Integrity of management (directors), (b) Management (Director) experience, knowledge and changes during the period, (c) Unusual pressure on

management (directors), (d) Nature of the entity’s business, and (e) Factors affecting the industry in which the entity operates.

Riskof Material Misstatement (Inherent Risk) At The Assertion Level

From your risk assessment (i.e., Requirements 1 and 2), identifythree (3) specific account balances (not account classifications!) that you consider at significant risk of material misstatement. For each of the three account balances you identify:

1.Explainwhy the account balance is at significant risk of material misstatement

2.Explainthe key assertion at risk of not being

3.Detailone (1) relevant substantive audit procedure to address the assertion at risk as identified in b) above

4.Detailone (1) relevant practical internal control that would mitigate the risk in relation to the assertion at risk as identified in b) 

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