Auditing and Assurance Services (Australian) Assignment

Auditing and Assurance Services (Australian) - Assignment Example 45 and Wen, 2011). The audit plan will, thus, include procedures to gather â€Å"audit evidence of events or conditions and related business risks† that will impact the Group’s â€Å"ability to continue as a going concern† (ASA 570, par. 17). There should also be procedures to review management’s assessment, if there’s any, or to discuss with management its assessment of the Group’s ability to continue as a going concern (ASA 570, par. 19 and 20). The subsequent events review should also emphasize reviewing subsequent events that may or may not indicate that the Group still has the ability to continue as a going concern. Related to the going concern issue is the news that the financial guarantors of Reliance Rail had claimed that there were already â€Å"events of default under the consortium’s debt financing documents† (Kelly, 2011). In addition, page 44 of the 2011 Annual Report stated that, â€Å"based on legal advice receiv ed†, the claim is not expected to â€Å"adversely affect the delivery† of the Project’s contract. With this development, the audit plan, in the assessment of the Company’s internal control structure, should include procedures to assess how management identifies legal matters for recording or for disclosure. The plan should also include an initial independent assessment on whether or not this issue is actually a legal matter and if it is, plans to obtain representations from the Company’s or the Group’s legal counsel should be incorporated. Significant Accounts and Balances Page 41 of the 2011 Annual Report disclosed that the Group is using the Forecast – Cost – At Completion or FCAC to estimate the total costs it will incur in the project. The cost components are based on management’s assumptions, estimates and judgment and these significantly affect a lot of accounts and balances in the Group’s financial statement s. There is, thus, a need to understand management’s processes and assumptions for coming up with these estimates, how they affect the individual balances and what will happen to the balances if the actual costs are not consistent with the estimates. When auditing the related expenses (such as materials and labour), the significant assertions that should be included in the audit plan are completeness, accuracy and cut – off. Since the risk of misstatement and the audit risk for these balances are higher, the materiality level should be set at the lower range (i.e., 1% - 2% of pre – tax income) and the preliminary materiality level should be set accordingly and documented through the audit planning documents. Page 43 of the 2011 Annual Report disclosed that â€Å"approximately 170,000 hours of Engineering and 60,000 hours of Drafting will be applied to the project at a fully burdened labour rate†. With this, the labour account will be classified as a signi ficant account for audit purposes, with a high risk of misstatement. The audit plan should include assessing and testing internal controls that are related to labour costing (regular and overtime costs), inputting of man – hours, calculating payroll costs and summarizing the total cost for the period. Information Technology (IT) audit should also be considered to test the internal controls around the IT infrastructure to assess if labour cost is being appropriately recorded and summarized in the computerized system. Substantive audit procedures should revolve around testing and analysing the actual

AT&T Research Paper Example | Topics and Well Written Essays - 500 words

AT&T - Research Paper Example As such this product will serve the needs of the young and middle aged individuals and families looking for entertainment on the go. Apart from this, the durability and reliability of the product is another important quality variable which can play important role in satisfying the needs of the customers. After sales services, good warranties as well as good coverage for the mobile phone services are some of the key needs of the target market to be satisfied. It is critical to note that firm needs to perfect its strategy in order to continue to serve the market. As such constant focus on improving the focus on the customer coupled with better delivery and service. (Kotler and Keller). AT&T needs to develop an extensive off-line and online distribution mechanism in order to facilitate the customers to obtain the product with relative ease. It is also important that AT&T must develop an alternative channel for distribution. As such, this product will fulfill the needs of those customers who are willing to enjoy entertainment on the go and belong to middle income level group.