|
Inherent Risk |
Justification |
Ledger account impacted |
Assertions |
Audit Procedure /Task |
|
1. Improvement in the technological aspects |
According to the Annual report 2016, the ANZ bank had expended $138million towards the efficiency and improvement of the technology within the environment of the bank that has resulted in the decline of the overall profits of the company |
Revenue |
Accuracy Valuation and Allocation Valuation and allocation |
Inspect a sample of transactions related to the expenses on the new softwares or other technologies and trace details from the purchase company to ensure the effectiveness in the records made by the purchaser company. Check the performance of the company in particular after the adoption of the latest technologies and innovation made in the systems. Check whether the softwares will result in the lowering of the charges in amortization of the same. |
|
2. Variability in remuneration |
ANZ Bank is operating and maintaining a lot of accounting record of their cash and other expenses. The variability as per the category of the employees is paid that increases the expenses. |
Revenue Cash/cash equivalents |
Accuracy Valuation and Allocation |
The categories of the employees for the remuneration include the High performing, that must be checked and recorded as to whether the maintained records are correct or not The expenses affect the cash and cash equivalents that must be verified as the higher expenses can lead to the lowering down of the profits of entire company and increase in the total cash outflows. |
|
The company has various risks related to the credit terms of the company and the liquidity condition of the bank. |
Revenue |
Cut-Off Occurrence |
The documents of the company must be checked in a specific manner and the accuracy of the processes of the banks must be evaluated and assessed. Inspect the occurrences of the lack in the liquidity position of the bank. |
|
Inherent Risk |
Justification |
Ledger account impacted |
Assertions |
Audit Procedure/Task |
|
1. Operating in unstable and uncertain areas |
West farmers are undertaking its operating in a number of geographic locations. They are vulnerable against many uncertainties including political unsteadiness and discovery. There must be a proper record, management of the bank accounts in a number of countries and the inventory also must be maintained to create reduction of the risks, and other threats related to the inventories of the company. The declining sales and margins, can lead the company towards long-term problems. By this means, there can be an increment in the Inherent risk as there can be manipulation and alterations in the financial records and statements that can influence the management decisions. |
Revenue Inventory |
Occurrence Accuracy Cut-off Classification of Sales Transactions |
The sales transactions must be checked and there must be a match of the invoices of the sales and transactions. The sales must be verified for accuracy and reliability. The invoices of the sales must be checked for the accuracy in the balance sheet of the business organization. The sales and the transactions must be checked as per the classifications done. |
|
Existence Cash & Cash Equivalent |
There must be measures taken for the checking of the physical inventories in the multiple locations for determining the stocks and records in all the multiple locations. Examine details of transactions related to the receipts and invoices and maintaining sequences Performance of bank reconciliation Inspection of the rates of conversion as per the foreign exchange rates |
|||
|
2. Project Valuation |
West farmers undertake numerous large-scale ventures for their businesses. The risk of measuring the cost of projects correctly is difficult. At the time of recording of the assets, it is likely that they are depreciated in an incorrect manner. |
Property Plant and Equipment |
Valuation and allocation Completeness Accuracy |
The depreciation and revaluation must be checked and controlled Inspection of the repairs and maintenance of the documents of items not capitalised and expensed instead. The management must be enquired for the accuracy in the methods and policies related to depreciation. |
|
3. Unusual pressure on management |
The decline in the sales of the company has resulted in the generation of unusual pressure on the management and the organization that must be checked as it can influence the going concern of the company |
Revenue |
Cut-Off Occurrence Valuation and allocation |
The documents of the revenue and other transactions must be checked and documented for the years before and after the current period. Inspect the transactions of sales and cross check the sales invoice for the similar transactions The trail balances of the debtors must be checked so as to know the ability of the debtors of paying off the debts |
|
Inherent Risk |
Justification |
Ledger account impacted |
Assertions |
Audit Procedure/Task |
|
1. Operating in unstable and uncertain areas |
West farmers are undertaking its operating in a number of geographic locations. They are vulnerable against many uncertainties including political unsteadiness and discovery. There must be a proper record, management of the bank accounts in a number of countries and the inventory also must be maintained to create reduction of the risks, and other threats related to the inventories of the company. The declining sales and margins, can lead the company towards long-term problems. By this means, there can be an increment in the Inherent risk as there can be manipulation and alterations in the financial records and statements that can influence the management decisions. |
Revenue Inventory |
Occurrence Accuracy Cut-off Classification of Sales Transactions |
The sales transactions must be checked and there must be a match of the invoices of the sales and transactions. The sales must be verified for accuracy and reliability. The invoices of the sales must be checked for the accuracy in the balance sheet of the business organization. The sales and the transactions must be checked as per the classifications done. |
|
Existence Cash & Cash Equivalents |
There must be measures taken for the checking of the physical inventories in the multiple locations for determining the stocks and records in all the multiple locations. Examine details of transactions related to the receipts and invoices and maintaining sequences Performance of bank reconciliation Inspection of the rates of conversion as per the foreign exchange rates |
|||
|
2. Project Valuation |
West farmers undertake numerous large-scale ventures for their businesses. The risk of measuring the cost of projects correctly is difficult. At the time of recording of the assets, it is likely that they are depreciated in an incorrect manner. |
Property Plant and Equipment |
Valuation and allocation Completeness Accuracy |
The depreciation and revaluation must be checked and controlled Inspection of the repairs and maintenance of the documents of items not capitalised and expensed instead. The management must be enquired for the accuracy in the methods and policies related to depreciation. |
|
Unusual pressure on management |
The decline in the sales of the company has resulted in the generation of unusual pressure on the management and the organization that must be checked as it can influence the going concern of the company. |
Revenue |
Cut-Off Occurrence Valuation and allocation |
The documents of the revenue and other transactions must be checked and documented for the years before and after the current period. Inspect the transactions of sales and cross check the sales invoice for the similar transactions The trail balances of the debtors must be checked so as to know the ability of the debtors of paying off the debts |
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
