Keystone Computers & Networks, Inc. ( Kcn )

This project presents an audit risk assessment on Telstra Corporation Limited using advanced accounting techniques

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.).

* From the e-Activity, choose one (1) of the eight (8) steps in the Clarified Auditing Standards–Learning and Implementation Plan. Based on the step you have chosen, analyze support for the action plan proposed, and make at least two (2) recommendations that would improve support of the action plan.

This course is the first in a two-part series that deals with auditing a company 's financial reports, internal controls, and

Read the auditor’s report included in the annual report of the company and explain its purpose. Identify the name of the auditing firm.

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

CAS 300 requires auditors to their audit using a risk based model where the nature, timing and extent of audit procedures are based on the assessed risk of material misstatement. Pickett (2006) argues that for audits to be effective and efficient, much of the audit effort should be focused on areas that are considered to pose the highest audit risk. Additional audit procedures should be linked to individual audit assertions whereas other audit procedures need to be performed as and when needed. Thus, for an audit plan to be put in place, it is necessary for an auditor to come up with a risk profile of the client comprising an understanding of the business operating by the audit client, assess business risk and also perform its preliminary analytical review.

Elder, A. A., Beasley, M., & Elder, R. J. (2014). Auditing and assurance services (15th ed.). Upper Saddle River, NJ: Pearson.

1. To provide the schedule for major portions of the audit, and the staffing requirements for the engagement.

Arens, A. A., Elder, R. J., & Beasley, M. S. (2013). Auditing and Assurance Services. Old Tappan, NJ: Pearson Education.

b. Assess acceptable audit risk as high, medium, or low considering the items you identified in requirement a. (A risky client will be assessed as a low acceptable audit risk.)

3. What are the primary objectives an audit team hopes to accomplish by preparing a proper set of audit workpapers?

List the fraud risk factors that the CPA firm might encounter if they accept this audit engagement. Be sure to include a discussion of all items that will probably require special attention during the audit. For each of these fraud risk factors, indicate how the auditor should follow up on each potential problem if the engagement is accepted. Use the following format:

3. Discuss how the auditing procedure should have been modified to address the high-risk financial statement items.

The audit risk is generally evaluated based on accounting firm policy and professional judgment. Our firm requires us to assess low audit risk, which is to be 0.05, for the audit client that generally has stable financial condition and achieve steady financial performance. Tiffany is profitable company and has strong financial position: the net income in 2012 and 2011 are $416M and $439M respectively, Net assets in 2012 and 2011 are $2,611M and $2,349M respectively. In addition, the market share of the company in jewelry industry ranks No.1 in US and No. 2 in the world. They could keep their position continuously due to brand power and valuable employees. Therefore, we determined our overall audit risk to be 0.05.