RELIABLE PRINTERS LTD (RPL)CASE STUDY
Aims :
This assignment is designed to facilitate your learning of the key skills and knowledge needed when facing a financial report audit of a company, and how to analyse, research and pinpoint facets of the company that require auditing attention.
Case Background
This case analysis relates to the continuous case study, titled Reliable Printers Ltd (RPL), which is featuredin the Appendix of the Gay &Simnett (2017) textbook. The details of the case study commences from Chapter onwards, covering key aspects of a financial report audit.
RPL business primarily involves traditional paper-based book printing and e-book production. More specifically, RPL prints magazines, books, and advertising material for publishing, educational, and advertising industries. Their print-on-demand system allows their clients to print the exact amount of stock that is needed.
INSTRUCTIONS:
A. Please read the RPL continuous case study background informationin , and
B. Answer the following questions - as enumerated below. In doing so, cite relevant sections of the Auditing standards and/or related regulations where appropriate.
• Your answer should be approximately 2,500 words.
Questions:
Please answer ALL Questions after fully reading the RPL case study.
1. RPL is a new client to your firm.As the audit senior for Rogers & Brown, leadingthe audit team of RPL for the first time, discuss factors that will influence your:
• Client Acceptance
• Preliminary risk assessment
• Preliminary materiality calculation
• Audit Planning
2. Review the initial fundamentals of the business (Appendix pages A1 to A3), analyse the financial information identify FOUR specific types of business risks that are involved in RPL, and how you (as senior auditors of RPL) will response to these identified risks.
3. Internal controls are a vital aspect of any company. Please review the RPL Case Study(Appendix, pages A1 to A13) and discuss the following:
a. Identify THREE control strengths and THREE control weaknesses
b. How the identified control strengths and control weaknesses may influence the effectiveness of the control environment
c. What control tests would be applicable for each control strength
Attachment:- case study.rar