this assignment is due on 30th of may and have to put in turnit in. i have attached the requirements and the format about the assignment. Document Preview: Assignment infoAuditing Assignment Company-...

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this assignment is due on 30th of may and have to put in turnit in. i have attached the requirements and the format about the assignment.
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Assignment infoAuditing Assignment Company- ACUREXLength: Maximum word limit 3000 words (including Appendices)Required1. For the purpose of the assignment, you assume the role of an auditor and your firm has recently been appointed as external auditor of an entity. As required by Auditing Standard ASA300, you are preparing an audit plan for the audit of the entity’s financial statements.2. The audit fee is $92,000 and had been communicated to the client in the Engagement Letter.3. You are required to download the 2011 annual report published by the following entity:ACRUX (www.acrux.com.au)4. Using the first four steps in the audit process as prescribed in Chapter 6 (pages 254-255) of the textbook, plan the audit for the entity you have chosen. Since you are required to develop an audit plan for a real life entity, quoting directly from textbook does not meet the objective of the assignment. 5. Your audit plan must include the followings:1. Executive summary2. Introduction3. Audit plan with the following headings:a. Understanding the entity and its environmentb. Understanding internal controlc. Assessing the risks of material misstatement (for 5 key accounts)d. Developing responses to assessed risks (for the accounts selected above)4. Conclusion5. References6. AppendiceAdditional informationFor the purposes of the assignment, the following auditing standards are relevant:- ASA210 Terms of Audit Engagements- ASA220 Quality Control for Audits of Historical Financial Information- ASA230 Audit Documentation- ASA250 Consideration of Laws and Regulations in an Audit of a Financial Report- ASA300 Planning an Audit of a Financial Report- ASA315 Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement- ASA320 Materiality and Audit Adjustments- ASA330 The Auditor’s Procedures in Response to Assessed Risks- ASA520 Analytical ProceduresHints. You are required to plan the audit using only...

Answered Same DayDec 20, 2021

Solution

Robert answered on Dec 20 2021
3 Votes
Acrux: Auditing 1
Executive Summary:
With the increasing fraud by the companies the need and requirement of auditing the financial
eport has become very necessary for the organizations so as to ensure that the organizations are
presenting a true and fair picture of their financial health and working. As per Auditing concept
committee, Auditing is considered as „a systematic process of objectively obtaining and
evaluating evidence regarding assertions about economic actions and events to ascertain the
degree of co
espondence between those assertions and established criteria and communicating
the results to interested users‟ (Auditing Review, 1972)
The capital markets have a strong focus on the transparent financial reporting. The financial
statements of an organization reflect, within the limits of the accounting model, a true and fair
view of the organization‟s financial results. The financial statements does not favor one user over
another, from a point of view of the organization, all the users are considered to be important and
the company needs to have a strong focus on the true and fair presentation of the company.
In this paper we will
ing into focus the auditing plan of the Acrux company.
Introduction:
With the increase in the fraudulent financial reporting and restatements of earnings, auditing
(external audits, internal audits, and governmental audits) has become more important and an
integral part of the organizations today. Financial statement audits provide an important level of
assurance about the integrity of financial statement information used by decision makers. The
auditing focuses on providing a true picture of the financial health of the company. As a
vocation, auditing offers the opportunity for challenging and rewarding careers in public
accounting, industry, and government. Many auditors develop a client base with a concentration
Acrux: Auditing 2
in one or more key industries. As a result of serving many clients in similar industries, few
individuals understand the key competitiveness factors for a business better than the auditor.
The financial statement are used by different users across the globe:
Users of Audited Financial Statements
User Primary Use of Report
Management Review performance, make decisions, report results to capital markets
Stockholders Assess performance, vote on organizational matters including the board of
directors, make decision to buy or sell stock, or purchase more stock as part
of a stock offering
Financial
Institutions
Loan decisions—interest rates, terms, and risk
Taxing
Authorities
Determine taxable income and tax due
Investors Buy or sell stocks, bonds or other securities
Regulatory
Agencies
Compliance with regulations, need for regulatory action
Labor and Labor
Unions
Collective bargaining decisions
Bondholders Buy or sell bonds
Acrux: Auditing 3
User Primary Use of Report
Court System Assess the financial position of a company in litigation involving valuation
Vendors Assess credit risk
Retired
Employees
Protect employees from surprises concerning pensions and other post-
etirement benefits due to accounting restatements
Organization’s environment and operations:
Acurex is one of the leading health care organization of Australia, which has launched its
products by the name of Axiron in US market. The company ahs also launched Lilly in the US
market which also focuses on catering to the health care market in United States. The company
focuses on developing therapeutic product, the product is as per the US Food and Drug
Administration. The company markets for the replacement therapy for men with the deficiency
or absence of testosterone. The sales for 2011 in US accounted for $1.2 billion which is expected
to increase by 19% in 5 year compounded annual growth rate.
The company focuses on commitment towards the men‟s health with a strong focus on different
male hormone therapy. The products of the company are marketed in more than 143 countries
across the globe. The company also have a strong focus on the animal products and women‟s
health. The company focuses on developing different spays which takes into consideration
different health problems of women which includes menopause, testosterone therapy, and
contraceptive issues.
As the company has international existence in the health care system, the company focuses on
different aspects which include royalties received.
Acrux: Auditing 4
The company operates in a highly competitive environment, thus the competition that is faced by
the company is quite high and the company needs to have a strong focus on its performance and
its products so as to have a strong competitive edge in the market.
Internal Control:
Internal control is one of the integral part of an organization. It is a system which controls
different types of risks,
inging into focus different frauds of the company, assuring the
transparency of the company which helps in a reliable financial reporting. It focuses on
achieving the goal of the organization with an aim that ensures that the operations of the
organization are...
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