Purpose: This assessment will allow students to demonstrate their understanding of auditing standards, procedures and techniques, how they are applied in organisational situations and the implications...

AUDITING AND CONTROL IN THE ORGANISATION OF SS
Table of Contents
Introduction    3
Key Audit Assertions for Audit of Sweet Sounds Limited (SS)    3
Risk Factor    4
Specific management objectives    4
Kinds of Substantive Processes to cover mentioned Assertions    5
Indirect analysis and observation technique of SS    5
Analysis technique for testing knowledge    5
Audit coverage Procedures of SS    5
Risks in Auditing Provisions for Wa
anty    6
The existence    6
Entirety    6
Rights and obligations    6
Accuracy and analysis    7
Presentation and revelation    7
Audit Report    7
Explanation    7
Recommendations    8
Conclusion    9
References    10
Introduction
A business has a wa
anty policy, under which it promises customers to replace or repair their products within a few months after the date of purchase of goods. This promise only applies when the goods delivered are defective within the wa
anty period. The company has to estimate the number of wa
anty claims accurately, from which the number of expenses arising through the policy approximates the cost of the anticipated claims given. The accretion should occur in the same reporting period only when sales of the relevant product are recorded. Financial statements by making an addition can accurately represent all costs associated with the sale of the product, thus indicating true profitability related to those sales. If the amount of wa
anty expense recorded by the company is significant, it should be checked by the company's auditor so that the co
ect data can be detected.
The audit approach can be a risk analysis methodology that focuses on the combined impact of the environment. This reduces the information of the customer's management and, therefore, the effectiveness of the customer's internal controls. This supports a radical understanding of the client's business and business, which is achieved through extensive analysis of the external and domestic operative environments. This allows us to design an audit program that has the most effective and economical combination of testing accountable to the client's specific circumstances — besides, the same methodology for developing and documenting the basis for an audit program.
The audit approach allows the organisation to establish one-time efforts in proportion to the probability of material e
or within the organisation's specific accounts and transactions. This audit provides the basis for coming up with the minimum effort required to limit the risk to the lowest level in every field. As a result, each audit methodology has a specific purpose that relates to the actual corporate landscape and during which nothing is routine. Therefore, it is undoubtedly unnecessary.
Key Audit Assertions for Audit of Sweet Sounds Limited (SS)
Professional standards require that SS should design the character, time, and procedures of its audit once thinking about materiality and audit risk. This organisation additionally needs to take into account audit risk and materiality after evaluating the results of those processes. Materiality has been set at two levels in the initial designing section (Ferguson, Pinnuck & Skinner, 2016). In its first level, the collaborative mix level relates to accounts taken in physical form by creating the entire system. In the second level, the range of transactions levels with a private balance or a tolerable e
or.
Audit risk is underscored by the risk that the associate auditor may inadvertently fail to change his opinion on materially inaccurate accounts. Material and audit risk are addressed at a mixed level to assist SS to develop an audit strategy that gives them comfortable evidence to evaluate whether the accounts are materially inaccurate. The risk of an audit in a transaction-level account balance or category is that the product of those risks, which may be the cause of a factor in a company's internal or external operating environment, is material e
or and inherent before considering the functioning of an internal e
or.
Risk Facto
A physical e
or is not prevented or immediately detected by a system of managing risk for control. If the auditor's method fails to find a material e
or known by the control system, it becomes challenging to find the chance that the organisation gets. The audit approach provides a technique to relate these risk considerations to materiality and hence the nature, timing, and extent of SS's audit procedures. This is often accomplished through specific risk analysis and preliminary audit approaches (Solieri & Hodowanitz, 2016).
Specific management objectives
A vital component of the audit approach is the relationship of particular management objectives to transactions and accounts. Specific management objectives are derived from the five general management objectives that a register should be expected to realise. Three of the five priorities are security associated with recording, and establishing security responsibilities and providing for the intervention of e
ors and i
egularities. The fourth is that general cohesion that ties in with the system of accountability created by the primary three, and therefore the fifth objective is a co-casting assessment to detect e
ors and i
egularities.
We have translated these general objectives into specific management objectives that relate to the accounts and transactions of a business. The actual management objectives are associated with the activities of each operation element that generates and processes group operations. The results of every form of group action...