i have alredy done this but failed three times order id 88216 i will attach everything again need to do task 02 and 3 an i will attach tutor comments to refference for what to complete
Task 3: Develop an Audit Plan: Fortescue Metal Student ID 70182 Student Name Sandu Samaditha GimhanaSELLA HANNADIGE Assessor Name Mohammad Ajmal Khan Has the Student met the following criteria in this task? YES NO Client: Developed a draft audit plan covering essential audit areas and scope of the audit √ |_| The plan is prepared as a formal business document with appropriate style, and structure (Spelling, grammar, executive summary; the structure, organisation and presentation of ideas; and the appropriate use of tables, figures and charts) √ |_| Identified all relevant factors/issues pertinent to the audit process and recognised the significance of any interrelationships between them √ |_| All relevant ideas, concepts, and theories covered with clear explanation, and with clear perspective and context √ |_| Used a wide range of relevant, current and credible sources used to explore the concepts and support the arguments √ |_| Applied key financial audit theory, standards and concepts to develop the plan and the audit template √ |_| Legal, regulatory, and organisational information is appropriately referenced by respective legislations and standards √ |_| Company brief and market overview provides the required background and context for the audit √ |_| Audit objectives are specific, measurable, achievable, realistic, and time bound √ |_| Audit objectives are consistent with organisational requirements and purpose of audit √ |_| Auditor’s role, responsibilities and ethical principles are clearly outlined in accordance with established standards and best practices (references provided) √ |_| An audit methodology is conceived with identification of the type and source of data, sample size/volume and collection method √ |_| The plan outlines key processes, areas of investigation/examination, key milestones, gathering of evidences and involvement of personnel √ |_| Audit strategy outlines how the audit objectives will be achieved and/or realised in both tangible and intangible outcomes √ |_| Resources and timelines are clearly identified and established for various stages/phases of the audit √ The plan includes provisions for evaluation and adjustment of the audit process if needed √ |_| Risk assessment plan takes into consideration key internal control processes and possible risks associated with financial reporting √ |_| Risk mitigation strategies are suggested based on likelihood and severity of anticipated risk √ |_| An audit test program includes verification and validation processes/methods for audit data √ |_| Data storage, access control and security procedures are suggested in line with legal and regulatory requirements √ An audit template is prepared using an appropriate style (referenced) √ |_| The audit template includes essential audit areas, functions, and reporting; and is consistent with a sample/generic audit template √ |_| Evidence of synthesis and use of unifying concepts in own language and style throughout the plan √ |_| Cited all external sources using an appropriate referencing system √ |_| Assessment Outcome Must complete the assessment. Please provide the rest with the assessment. Please include: Audit timeline, milestones and evaluation Matters to report to management Data storage, access and security procedures Student’s Performance was |_| Satisfactory Assessor Signature: Ajmal Khan Date: 27/04/2022 √Not Satisfactory FNS60217 | FNSACC602 Audit and Report on Financial Systems and Records Marking Guide | V 1.0 | April 2018 TASK 2 Cash and bank balance: · Checking of the internal control systems and procedures. · Evidence of the transactions taken place and the related documents · Cash receipts and there management · Physically verifying the cash in hand · The petty cash ledgers and related transactions · The verification related to the opening balances of the cash in hand and at the bank · Bank overdraft if any. Accounts receivables: · Checking of the receivables register · Calculate the report of the receivables of the company · Inquire into the items to be reconciled · Obtain external confirmations from the third parties · Matching and mismatching of the invoices · Review the cash receipts in hand Fixed assets: · Verification of the fixed assets register maintained by the management of the company · The sale agreement related to any fixed assets sold or purchased by the company · The details of the transactions and accounts maintained with the auctioneers. · The selling notes issued by the brokers to be verified · The minutes books of any meeting of directors of the company. Liabilities: · Checking the balance in the balance sheet related to liabilities · Confirming the balance of the same with the third party · Liabilities which are current and non current in nature · Checking the transaction history · Confirmation from the suppliers if any regarding the balances Investments: · The warrants related to dividends received by the company should be checked. · The annual reports of the company in which the investments are displayed are to be checked · The bank statements should be checked regarding the payments of interest related to investments. Describe the significance and purpose of audit The purpose of auditing Woolworths is to review and provide opinion to verify if the Woolworths statement is prepared correctly, fairly and as per the financial reporting standards according to the Corporation Act. Overview of legislative and compliance information and references to specific laws and standards pertaining to financial reporting and auditing The auditors will perform their tasks according to the laws and no company and its management can obstruct the auditors from performing their duties. The auditing body has the right to submit data, to inspect and investigate as well as collect evidences for taking temporary enforcement measures. When an auditor exercises any independent auditing authority in the Australia it is well protected by the laws. Further, if the company which is being audited refuses to perform then the auditing authority can penalize the company. Further, the auditor must maintain confidentiality for implementation of the avoidance system. They must be impartial in handling of audit matters, pursue for truth, be honest and try not to disclose all facts. If on the other hand the auditor abuses his duties then he shall be investigated for criminal charges according to the law. As per Australia’s auditing necessities the audited entity must implement audit decisions with respect to illegal incomes and fines in specialized accounts which are designed for the auditing agencies. Further, if the auditing entities fails to execute the auditing decisions as per the laws there must be measures initiated to order their execution. Such decisions will be dragged to the court and agreed upon legally if they refuse to implement the audit decisions. Company’s responsibility for reporting, governance and record-keeping as a public company Many key controls will exist in the company of there is a prudent corporate governance system established in the place. It will also consist of a high-risk management framework and procedure which is used for recognition, implementation, reporting on the framework and enhancing the operational efficiency for establishing a prudent internal control management and elimination of the risks. Governance and internal control issues relevant to audit The purpose of corporate governance is to improve the corporate governance, ensure the realization of company objectives and enhance the values for the company. Corporate governance audit consists of corporate governance audit at the shareholder level, governance audit at the board level. The governance auditing conducted at the board level involves supervisor, independent, internal and government audits. If one conducts governance audits then such audits help to safeguard the stakeholders’ interests, improve the operational management of the company, company’s credit policy, business management and performance. Audit procedure and auditor’s approach to audit The audit method is a term which is used by the auditors for auditing and supervising activities. This was developed by the people for the long-term perspective of audit work. As the social economy and advancement of technology the auditing method has been developed gradually. There are two basic methods which are auditing and auditing techniques. The basic methods used in auditing are auditing, evaluation, adjustment and reporting. The various techniques used in auditing are checking, reviewing, query, evaluation and inventory management. For a complete auditing system its experimental identification method, comprehensive investigation method and random inspection process. Analytical procedure & its significance It is a crucial part of audit process and consists of the analysis of financial information which is formed by a studying the relationship between the financial and the non-financial data. There are various types of analytical procedures which ranges from simple comparisons to complex modelling. Specific conditions which can cause variations in the relationships consists of unusual transactions, business and accounting changes and random misstatements. Trend and ratio analysis are two analytical procedures used in the audit process. The auditors use these trends and ratios by comparison the client accounts and the balances as per their expectations which they were able to obtain in the prior years, as per the present economic development and industry trends. Through ratio analysis the organizations are able to compare the periods or industry in which the company operates. The Trial Balance for the company as on 30th June, 2013 are as follows: Particulars DR CR Land 580000 Building (Net) 136230 Ordinary Shares of Re. 1 each 500000 5% cum-preference shares at Re.1 each 350000 8% Debenture (2013) 400000 Equipment (Net) 53770 Goodwill 200000 Investment in shares (quoted) 135000 Stock and work in progress 501235 Debtors 253460 Profit & Loss 199105 Interest payable on debenture 64000 Trade creditors 481235 Loan from Directors 80000 Bank Draft 183565 2058800 2058800 Authorised capital of the company is 1000000 ordinary shares of Re.1 each and 5% cumulative preference shares of 500000 each at Re.1. At the time of meeting with shareholders and the directors the various schemes related to internal reconstruction must be carried out. Further the below schemes were agreed: 1. The ordinary shares will be reduced to 25k. 2. 5% cumulative preference shares will be exchanged for the new issues of 8% cumulative preference shares of 175000 of Re. 1 each and 700000 ordinary shares of 25k each. 3. There was a nominal value of the shares of Re. 1 each for 25k which was being accepted by the shareholders. Further, the subscription to the new issue on a 1 on 1 basis was at a price of 30k per share. 4. The directors’ loan to the amount of 30000 will be cancelled. The balance will be settled by issue