Audit Assurance And Compliance For Accountability Journal

Discuss about the Audit Assurance and Compliance for Accountability Journal.

The main information is seen to be based on the various types of eh compliance which is seen to be based on the financial report of DIPL. This has been further seen to be based on the development pertaining to the audit plan with the various types of the guidelines generated in the audit process. In particular this has been seen to be helpful for the assessor in the consideration of the various types of the consideration made in the audit cost as per the assists in the aversion in the aversion for misunderstanding of the clientele data. The various aspects of the analytical data has been further seen to be associated to the dissemination of the information based on the financial declarations of the company. The important aspect of the process has been further based on the specific approach of the financial declarations, financial analysts and accountants for taking vital business decisions (Mahmoud Hosseinniakani, Inácio and Mota 2014).

The analytical approach has been further considered as per the common sizing and analyse the reference point. The comparison of the financial statement has been considered as per the different types of the methods seen to be conducive for different period in different corporations. The ratio analysis of the company has been further seen to be considered as per the financial declarations of the audit (Adams and Evans 2004).

Explanation of the way the results influence planning decisions for the audit

Table 1: Ratio Analysis

(Source: as created by Author)

The planning of the decisions has been further seen to be considered as per the audit planning when necessary. The results of the analytical process have been considered as per the classification of the financial statements as per the relevant information. For example, the various types of the outcomes of the ratio has been taken into account as per the current ratio of DIPL. This has been computed as 1.42 in 2013, 1.46 in 2014 and 1.5 in 2015. The main aspect of the profitability has been further seen to be 0.068 in 2013, 0.60 in 2014 and 0.06 in 2015. The various aspects of the profitability have been further able to reveal that the net income earned by the firm has been compared to sales from DIPL  (Ruhnke and Schmidt 2014). The assessor needs to understand the reason for high or low expenses to curtail the budget and time. The various types of fluctuations in the ratio are conducive for audit assessment with the soundness in the financial position. Comparably in 2013 and 2015, the solvency ratio is discerned as 0.62 and 0.21(Ghani and Rahman 2015).

Explanation of the way the results influence planning decisions for the audit

The important aspect of auditing has been able to show several incidences of material misstatements in the financial announce with a particular company. The various types of the risks have been further related to the financial misstatements with the financial declarations of the corporation. The risks have been further assessed as financial as well as non-financial factors. Despite of this fact the other related risks are seen to be related with omission and diverse errors, which are further seen to be diverse in nature for the operations of business in DIPL (Knechel 2016).

As per the given situation the various transactions has been omitted by accountants. This has been directed sequentially with the inconsistencies particular to the essential planning with the sales activity. The depictions made from the study has further disclosed about the accomplishment in terms of the profit generated from sales. The analysis off the given case has been further seen to be associated to the IT implementation process related to certain issues. DIPL is not adequate to handle the execution process and the installation of the reconciliation and the testing of new arrangement at the year end (Kilgore, Harrison and Radich 2014).

The cash receipts have been recorded as per the inherent risk present in the company and the same has been suspected based on the material misstatement consideration.

Excessive pressure on employees and management- The excess work pressure among the members and the staff has been further related to poor bookkeeping practice. The various attributes has considered as per the poor liquidity, operating outcome and issues in the cash flow (Schmidt, Wood and Grabski 2016).

Risks of errors or else incorrect misrepresentation- The main form of the intricacies and the errors has been misrepresented simultaneously (Duncan and Whittington 2014).

Integrity of the entire management- The management team of DIPL is seen to lack the required integrity and the expectation to prepare the reputational loss in the business.

Unusual pressure on management- The existence of the incentives for the management is based on the issues associated to exits incentives for the misstatements in the pecuniary declarations.

Nature of entity business- The growth in the major economies has been seen to be competitive in this circumstance. The aforementioned aspects of the inherent risk of the business have been further based on the consideration to analyse the planning structure of the audit (Gul, Wu and Yang 2013).

Identification and explanation of two key fraud risk factors relating to misstatements arising from fraudulent financial reporting

Reference List

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Adams, C. and Evans, R. (2004) ‘Accountability, Completeness, Credibility and the Audit Expectations Gap’, JCC 14 Summer 2014, pp. 97–115. doi: 10.9774/gleaf.4700.2004.su.00010.

Christensen, B. E., Glover, S. M. and Wood, D. A. (2013) ‘Extreme estimation uncertainty and audit assurance’, Current Issues in Auditing, 7(1), pp. 36–42. doi: 10.2308/ciia-50447.

Duncan, B. and Whittington, M. (2014) ‘Compliance with Standards, Assurance and Audit: Does this Equal Security?’, in Security of Information and Networks (SIN), 2014 Proceedings of the 7th International Conference on, pp. 77–84. doi: 10.1145/2659651.2659711.

Ghani, N. L. A. and Rahman, A. R. A. (2015) ‘An analysis of Shari’ah audit practices in islamic banks in Malaysia’, Jurnal Pengurusan, 43, pp. 107–118.

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Schmidt, P. J., Wood, J. T. and Grabski, S. V (2016) ‘Business in the Cloud: Research Questions on Governance, Audit, and Assurance.’, Journal of Information Systems, 30(3), pp. 173–189. doi: 10.2308/isys-51494.

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