Analytical procedures and audit opinion
Auditors have the responsibility to perform analytical procedures near the end of the audit that will assist in forming an overall conclusion on the financial report. International auditing standards provide guidelines to the auditors to perform analytical procedures. Although standard ratios are used for analytical procedures, the reliability of information and auditor's judgement may affect his conclusion based on the analytical procedures.
Requirements:
1. Describe the purpose and concepts of analytical procedures based on the applicable auditing standards (ASA) in Australia.
2. Choose from the year 2011-2014 and
select three Australian Public Listed companies as follows:
(i) one company in insolvency, one company with auditor's opinion on going concern issues and one company without any qualified opinion or emphasis of matter, and then
(ii) Form your opinion on the performance, risk and continuity of these companies by applying your knowledge of analytical procedures you developed in 1) above.
3. Compare and contrast your opinion you developed in 2) above with the auditor's conclusion about the performance, risk and continuity of the selected companies.
4. Critically analyse how the reliability of information and auditor's judgements can affect the results of analytical procedures. Refer to
3 refereed journal articles and auditing standards to support your answer.
Presentation:
Write a report addressing the above requirements. Marks will also be provided for an executive summary, a conclusion, grammar and references in appropriate style.