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Questions: Answer: Introduction: The present report is based on understanding the audit failure of ABC Learning. The company expanded in such an exponential manner over the span of twenty years that it appeared very spectacular (Vovchenko et al. 2017). Nevertheless the main reason for conducting the research is because of the several internal audit failure inside the company ultimately contributed to the...
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Questions: Answers: Introduction In the recent few years, the auditing profession has gone through various different changes. The auditors continuously require to effectively respond to the rapid changing demands and complex environment of business, while assisting the entities to continue comply with the growing regulatory mandates as well as confirm to the other requirements. Auditing is an inspection ...
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Questions: Answers: Introduction ASA 570 Going Concern (ASA 570) is concerned with the responsibility of the auditors in auditing the financial report related to going concern and the implication for the report of auditor. Under this standard, the responsibility of the auditor is to obtain adequate suitable audit evidence on the going concern basis of accounting used by the management and on the presence...
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Questions: Answer: Introduction Audit and assurance is a major aspect for the investors and other stakeholders in order to enhance the credibility of the disclosed financial information of the firms. In an assurance engagement, the main aim of an auditor is to gain adequate evidence for expressing a conclusion in order to improve the intended users’ level of confidence on the disclosed financial in...
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Questions: Answer: Answer To Question 1 Analytical procedure is a type of audit evidence which is used during an audit procedure. It consist of different procedures for the comparison of financial and operational information while examining the historical data. This procedure is applied to check the possible problem in the financial records which helps in further investigation. Analytical procedure is pe...
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Questions: Answers: Introduction The Auditing Standard of ASA 570 Going Concern is concerned with the duties of the auditor in the audit of the financial statements pertaining to the ongoing concern and the consequences for the audit report. The quarterly statements is prepared on the accounting basis of the ongoing concern, on the assumption that the business has become an ongoing concern and will carry...
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Questions: Answers: Introduction The main objective of this report is to review the 2019 audited annual reports of two listed companies in order to discuss about different audit related issues. The selected companies are Ramsay Health Care Ltd (Ramsay) which is a global health care company involved in providing high quality services and excellent patient care and Telstra Ltd (Telstra) which is an Austral...
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Questions: Answers: Introduction Interrelation Of The Various Risk (Ir, Cr, & Dr) For a specified degree of audit risk, there remains an inverse relationship between the assessed degrees of inherent risk and control risk for the assertion and the degree of detection risk which an auditor might accept for such an assertion. Therefore, the lower the inherent risk and control risk assessment, the highe...
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Questions: Answer: Introduction The assessment would be concerned with the analysis of the business of Jiajiafu Modern Agriculture Limited which is an ASX listed company for proper analysis of aspects such as performance, auditing and risks which is associated with the business. In terms of estimating the financial performance of the business, key financial ratios would be computed which reveals the fina...
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Questions: Answers: Introduction Answer 1 Key audit matters are those issues which are most significant in the specialized judgment of audit. In other words, key audit matters are those matters which affect opinion on audit report in a big way(Sirois, Bédard and Bera 2018). The Key Audit Matter is essential in the annual report of the flight centre travel group to communicate significant&...
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Questions: Answer: Answer 1 Appropriateness of Going Concern Mitigating Factors Intense competition in the Market One of the main concerns for the management of the company is the level of competition in the market which can affect the profits and therefore, it is imperative that a proper strategy is developed so that the competitive pressure can be managed (Minutti?Meza 2013...
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