Audit - Assurance and Compliance for DIPL - myassignmenthelp.com

Question: Discuss about theAudit, Assurance and Compliance for DIPL. Answer: Application of analytics in DIPL The major nature of the DIPLs economic report is to formulate the plan of audit. The audit is undertaken only after it is properly planned. Overall it can be said that the assessor in terms of cost maintenance related to the audit at a stage which is reasonable. Further, it has been found that, it helps in terms of maintenance of the cost of audit as well as assists in the avoidance of clients misunderstandings. The fiscal statement of the DIPL is associated to the particular firms financial nature.(Arens et al. 2016). The analytic approach of the normal size is based on the reference point of a common nature as also the financial statements. Further this has been found to assist in the comparison of the economic declarations along with the numerous periods based on several corporations. The registering procedure of the items including the net assets and liabilities including the owners in the economic reporting of the organisation as well as the inference of the deviation from the normal reporting is an example in this case (DeFond and Zhang 2014). There is the chance of a debate among the assessors regarding the numerous line items stated in the fiscal statement. of the: The most important result of the decision regarding the planning has been referred to as essential for the result evaluation that has been said to be influenced by the economic statements. The ratio outcomes are calculated. The financial report is also given as follows: Figure 1: Interpretation of Financial ratios The table signifies that the current ratio of DIPL increases over the years. Furthermore, this is found to be beneficial in determining if the expenses are high or low as well whether the management requires curtailing the budget and expending the same on the particular firm (Hayes, Wallage and Gortemaker 2014). The ratio comparison in three years helps to understand the relative positions of the firm in consideration in the respective three periods as well as lead to the further analysis of the factors that leads to the undesirable as also the unfavourable condition of the corporation (Cannon and Bedard 2016). Identification of inherent risk factor arising from the nature of business proceedings of the DIPL: The major factor which has been found to be based on the audit plan comprises the incidents connected to the materialistic misstatements in the economic declaration of the concern of a particular type. It might be said that the creation of the methodical forms assisted with the unsystematic nature of the risks helps in refection. This is concerned with the way in which the financial misstatements are considered for separate corporations (William, Glover and Prawitt, 2016).Despite this situation, the associated risks are seen to reflect the method in which the financial as well as the non-financial factors are reflected. These factors can help redirect or prevent a particular corporation from showing a true and just viewpoint of the pertinent financial declarations. It is not possible for a specific bookkeeper to remove those risks which are based on the correlations. There are certain risks of the variant mistakes. The specific bookkeeping possesses the inherent risks found to occur from the type of the DIPL operations(Barton and Bruder 2014). Depending on the said considerations which have been stated in the study, it can be said for sure that there have been several transactions connected to the accountants otherwise which has not been found in case of the DIPL Corporation (Eilifsen et al. 2013). The direct sequential lead in terms of the differences specifically associated with the ineffective planning of the activities related to sales (Duncan and Whittington 2014). In addition to this, it can be said that the fiscal statements have been found to reveal the reality. This reality was concerned with the designated level of profit depending on the sales-based revenue. Specifically, the management failure has been connected in terms of the particular requirements that have further been identified with the subsequent judgement of the functionalities (Beasley, 2015). The inherent risks have significantly increased due to the inexperience as well as the lack of proficiency of the employees. This has been observed primarily due to the competence of the members of the staff. DIPL has mounted the overall risk. This situation has occurred irrespective of the workers. The non-proficient workforce can positively influence the commitment of mistake risks. The exclusion errors as well as the particular instances have been considered to be based on the misstatements in the announcements of pecuniary nature (Nalewaik and Mills 2016). The facts that can be stated regarding the accessible risks can be segmented into different subsections depending on the environmental concerns. This was also connected with the materialistic misstatements and external facets during the previous time periods along with the falsified exercises. CEO is different candidate compared to the individuals. Some inherent risks have the possibility of handling of transition as also the procedure of choosing. According to common sense, there is an existent difference between an individual and a CEO. There is the ability of the DIPL to reflect on the significant amount of risks that are inherent in the CEOs succession process. However, some of the inherent risks might involve the procedural quality for the transition handling as well s choosing procedure. In common sense the CEO might be considered to be a different candidate compared to the other individuals. Therefore there are certain risks associated with the process commencement without the compliance with the strategies, inadequate involvement of the CEO as well as the candidate departure. Several problems have been generated by the numerous kinds of implementations of the new IT processes. The testing procedures in the beginning have led to the knowledge that the transactions were not provided with the appropriate amount of time. This is the cause for several incidents of materialistic misstatements as well the persons ministering other risks for omission in specific economic declarations. Adequate people were not available with DIPL to tackle the execution regarding the reconciliation as also the carrying out before the new arrangement before the years end. Apart from this the cash receipt recording was done by the professional expertise in finance which were incapable of handing the risks in a suitable manner. It was mandatory for the staff members to follow the correct order for the registration of the accounts as well as the accounts receivable ledger. This was due to the proper maintenance. Additionally the reconciliation of the bank also needed to be regarded in a proper manner (Louwers et al. 2015).It might have been due to the registering of the revenue that was obtained due to the e-books on account of the textbook reprinting that the diverse nature of the inherent risks were caused. In addition to this, the evaluation procedure of the inventory of the raw material did not seem to be suitable as the current cost of the paper was considerably higher in comparison to the average cost. Ways in which it might affect the risks of material misstatements in the economic report: The nature of the identified risks is associated to the material misstatements: Too much pressure on the management and the employees: In general due to the immense burden on the members of the staff, the bookkeeping is affected. There has been several attributes like the propensity to encounter issues related to the cash flow, low level of liquidity as well as the operating outcomes. The entire managements integrity: The integrity as well as the requisite and is expected to prepare for the reputation and its loss. Unusual pressure on the management: Material misstatements in many cases lead to pecuniary declarations. Nature of the business entity: The DIPL and the leading growth process has been considered along with the competitive scenario. It might however affect the overall risk involved with the business as well as the structure of the audit planning (Knechel and Salterio 2016). Identification and explanation of two key fraud risk factors relating to the misstatements rising from the fraudulent system of financial reporting: Well-known explanations of the risk of fraud related to the material misstatements are stated below: References: Arens, A.A., Elder, R.J., Beasley, M.S. and Hogan, C.E., 2016.Auditing and assurance services. Pearson. Barton, H. and Bruder, N., 2014.A guide to local environmental auditing. Routledge. Beasley, M.S., 2015.Auditing cases: An interactive learning approach. Prentice Hall. Cannon, N. and Bedard, J.C., 2016. Auditing challenging fair value measurements: Evidence from the field.The Accounting Review. DeFond, M. and Zhang, J., 2014. A review of archival auditing research.Journal of Accounting and Economics,58(2), pp.275-326. Duncan, B. and Whittington, M., 2014, September. Compliance with standards, assurance and audit: Does this equal security?. InProceedings of the 7th International Conference on Security of Information and Networks(p. 77). ACM. Eilifsen, A., Messier, W.F., Glover, S.M. and Prawitt, D.F., 2013.Auditing and assurance services. McGraw-Hill. Hayes, R., Wallage, P. and Gortemaker, H., 2014.Principles of auditing: an introduction to international standards on auditing. Pearson Higher Ed. Knechel, W.R. and Salterio, S.E., 2016.Auditing: Assurance and risk. Taylor Francis. Louwers, T.J., Ramsay, R.J., Sinason, D.H., Strawser, J.R. and Thibodeau, J.C., 2015.Auditing assurance services. McGraw-Hill Education. Nalewaik, A. and Mills, A., 2016.Project Performance Review: Capturing the Value of Audit, Oversight, and Compliance for Project Success. CRC Press. William Jr, M., Glover, S. and Prawitt, D., 2016.Auditing and assurance services: A systematic approach. McGraw-Hill Education.