ASA 315 Case Study

Knowledge about risks related to the company evaluated as part of the auditor 's client acceptance and retention evaluation; and the relative complexity of the company 's operations. ( Auditing Standard No. 9 //. (n.d.).

Preliminary analysis to understand the client‘s business and risk - Understanding the auditee’s business, environment, and risks

* ASA 200.11 provides the objectives of the auditor in undertaking an audit of a financial report

It is common industry knowledge that an audit plan provides the specific guidelines auditors must follow when conducting an external audit. External public accounting firms conduct external audits to ensure outside stakeholders that the company’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS) standards.

A 49-year-old, Middle Eastern male presented to the Northern Virginia Community College dental hygiene clinic for both an oral prophylaxis. He was in good health and did not use any medications or supplements and, therefore, was classified as a health status of ASA I. The patient’s vital signs included a blood pressure of 112/78 RAS, pulse of 64 beats per minute, and a respiratory rate of 14 respirations per minute, which further concluded his health status. Patient had no history of any tobacco use, nor did he consume any alcohol.

This memo will discuss ways that technology can be used to improve this organization’s performance. Additionally, it will consider the optimal methods for expanding the business’s online presence to include online sales. This will include information on how to incorporate intelligent systems and security features to guarantee that customers’ interaction with the new system will be positive. This memo will also analyze this business’s current and anticipated technology and information systems and provide option for other technologies or information systems that will be beneficial for the company. In discussing these options, information will be included to show how the options will advance or improve the business and enhance our customers’ experience.

According to the Australian Sports Anti-Doping Authority (ASADA) website list, there are a number of Australian athletes who have been involved in doping violation and/or scandals over the years. The major concern for sport managers is perhaps the increase of drug scandals that has occurred for Australian sport, especially over the last five years.

The auditor’s responsibility is not to evaluate a client’s business model but to have a sufficient understanding of the entity. An auditor needs a sound and comprehensive understanding of the client’s business and industry to develop valid expectations about financial-statement assertions.

The auditor must obtain an understanding of the entity and its environment, including internal controls, so that they can identify and assess the risks of material misstatement on financial statements due to fraud or error and design and perform further audit procedures.

When deciding on whether or not to take on a new client, firms interview the key decision makers to gauge their expertise in the industry for which the company operates. The auditors use that information to determine the competency on the top executives. With that being said, I believe that auditors should assess only those decisions made that would directly affect the reporting. For example, if a furniture maker decides to purchase more than 50% of fabrics from a new

This frequently puts the auditor in the position, in effect, of deciding whether a company is able to obtain the funds it needs to continue operating. Thus, the auditor’s qualification tends to be a self-fulfilling prophecy. The auditor’s expression of uncertainty about the company’s ability to continue may contribute to making it a certainty.

An audit is based when management prepares the financial statements, maintain internal control over financial reporting, and provide relevant information and access to the auditor.

In an external audit, the auditor begins with a risk assessment of the client’s system to determine where the risk is in such areas as cash, inventory, accounts payable, etc. The auditor uses this risk assessment to focus the external audit.

Internal auditors cannot effectively provide an analysis on the company’s internal dealings as they are part of the company. External auditors, however, can observe these processes from the outside and then determine where the funds of the company and whether the dealings adhere to the regulations. Using external auditors in a company prevents conflict of interest from happening. Conflict of interest is a situation where an individual or organization has multiple interests and of those multiple interests, one could possible corrupt the motivation for an act on the other when the auditor has any kind of beneficial interest in their client’s performance. In other circumstances, there is also the threat of familiarity where auditors become

A company prepares financial statement to provide information about its financial position and performance. This information is in turn used by a wide range of stakeholders (such as investors, banks, customers, suppliers etc) in making economic decisions with respect to respective economic interest in the company. Typically, in terms of ownership by investment in shares of the company, shareholders though own the company but do not manage it. Therefore, the shareholder and other such stakeholders to get comfort in taking sound decision need independent assurance from the auditors that the financial statements reflect true and fair view of the company affairs in all material respects. Hence, in order to enhance the level of