Auditing Assignment Example | Topics and Well Written Essays - 1500 words - 2

Auditing - Assignment Examplesely, the primary design of the accounting framework is to ensure that the users of fiscal information are provided with user-friendly information. This assignment seeks to present the creation of the audit, audit risk, and substantive audit procedures based on the case of Applied Graphene Materials PLC. Based on the unions monetary statements, first, three areas of heightened audit risk leave alone be identified, and a quantitative analytic thinking provided. Second, in relation to one of the identified areas in the first part, five substantive audit tests will be identified together their significance (Foster & Greenawalt 1995, pp. 1-5).The company analysis can take two approaches. That is the providers of bills and the controllers of the pecuniary resource. Funds are provided by stakeholders such as shareholders, creditors, and other entities. The categories of stakeholders that are responsible for the management of funds are directors and mana gers. From the statement, the providers of funds are different from funds managers. Therefore, fund providers require a report on how funds are being managed over a period, usually one year. However, the information contained in the financial statement may lack credibility for the following reasons the information may contain errors it may non disclose any fraudulent act the information may be inadvertently or purposely misleading and the information may not disclose all the literal information.It is a daunting childbed to prepare financial reports, especially for large companies with several subsidiaries that adopt different accounting practices. The process of consolidating the financial information of large companies such as Applied Graphene Materials PLC creates a breeding ground for multiple errors, fraud, and omissions. It is, therefore, the function of the auditor to verify whether the companys financial statements are free of error, fraud or material misstatement. That i s, whether the information presents a true and