Please find the details on attached file and do proper harvard referencing.

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Assessment 3:
This report has been formed to conduct audit on the company, Telechubbies Ltd. The purpose of this report is to guide the auditor, who is conducting audit in the company for the first time. 
(a) The possible sources of information that can be gathered to develop an understanding of the operation of the business and also to obtain sufficient knowledge of the business so that audit procedures can be performed (Bedard, Johnstone and Smith, 2010) are:
· Financial Statement – It contains all the relevant information on a company, its business operations and the financial figures of the company. 
· Industrial Analysis – The industry in which the company is operating should be analyzed to understand the average financial figures and key ratios prevailing in the industry. In case of high deviation between the financial figures of the company and the financial figures of the industry, the reason for that should be found. 
· Company Operation – Report proceeding with the audit, the auditor need to obtain information on the products and services of the client business and the mode of operation of the company.
· Engagement Letter – For the prior auditors, the terms of engagement is to be analyzed using the prior engagement letters. The working experience of the auditors hired before need to be understood. 
· Vouchers – All the vouchers of the business including sales invoice, purchase records, receipts and all other transaction records need to be gathered and those should be analyzed. Method of sampling can be used for the analysis.
· External Confirmation – The auditor need to obtain information from the external parties of the business including customers, banks, suppliers, vendors, surveyors and lawyers.
· Internal Control – The auditor need to check if the internal control of the company is working efficiently. The internal audit committee needs to be scrutinized, it is to be check if the members of the committee are acting independently or have any interest in the company.
· Minutes – Board meetings need to be conducted at regular intervals as specified by the law. The minutes of those board meetings should be analyzed to check the persons attending the board meeting and the topics which were discussed.
(b) The three key areas that need special attention are:

Please find the details on attached file and do proper harvard referencing.

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