Audit Plan - 1

In this article Michael Baker discusses the livelihood of small retailers in a market subjugated by the financially dominant oligopolies, Woolworths and Coles. While the small independent retailers in direct competition with Woolworths and Coles provide some competitive respite for consumers, as they encourage competitive pricing, albeit predatory pricing, it is clear that Woolworths and Coles control the supermarket industry in Australia, in the formation of a duopoly. It is evident that Woolworths and Coles engage in predatory pricing in an attempt to eliminate independent retailers from the market. This article discusses recent efforts made by the Australian government and the Australian Competition

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate (Louwers & Reynolds, 2007). We believe that the audit evidence obtained is sufficient and appropriate to provide a reasonable basis for our opinions.

There are four stages in this audit. The first stage is the planning and risk assessment. This stage of the audit is completed during the initial planning. The risks for Smackey Dog Foods, Inc. can be better identified by understanding the business, its industry, environment, management culture, the type of accounting used, and the competition. The auditors should be able to understand why Smackey’s sales are steadily increasing and its competitors sales are declining. To be more specific, the implementation and design of Smackey’s internal control procedures, processes, and systems are studied and analyzed for the audit team to be able to assess the control risk for each of the transaction related audit objectives, which are accuracy, occurrence, classification, completeness, summarization, and timing and posting.

Trend analysis, common-size financial statements, and ratios are presented for the Brody Corporation in Figure 5.4. Assume that you are auditing Brody 's financial statements for the year ended 12/31/X8. You have performed tests of controls over the recording of gross sales and believe that the system is operating effectively and that 7 percent represents an accurate estimate of the increase in gross sales for 20X8 over the amount for 20X7. You should also assume that the financial statements for 20X6 and 20X7 are not misstated.

Gauthier, S. J. (n.d.). Better Understanding of The Financial Statement Audit. Retrieved 06 26, 2011, from

This report evaluates Bestwish 2010 financial statements to ascertain the accuracy of the company financial records, and to ensure that the company financial statements are in line with the laid down regulations established for the limited company. The report evaluates the viability of the company Financial Statements using:

West farmers or Coles is one of the leading supermarket around Australia and also Cole’s owned a Coal mines in three states but what really Cole’s business, is to sell groceries; and coles shared 70% of the Australian Market. In this Essay it will explain how Cole’s business started and how they influence into the Australian market.

This essay explores the corporate collapse of Harris-Scarfe on April 3 2001, which before their collapse was Australia’s third largest retail group (Buchanan 2004, p. 55). It will explore the collapse in the context of the auditing framework. In particular, how the financial indiscretions were not discovered by the auditors, which were going on as early as six years prior to the collapse (Buchanan 2004, p. 62). To start with, we define what the auditing objective is in order to work out where it failed in this case. ASA 200.11/ISA 200.11 defines the auditing objective as one that needs to ascertain reasonable assurance that the financial report as a whole is free from misstatement, whether due to error or fraud. In doing so the auditor can give an opinion of whether the financial report was prepared in accordance with the financial reporting framework (Gay & Simnett 2012, p. 12).

The following report will investigate the Australian retail/grocery supermarket Woolworths and its parent company Woolworths Limited. This report will explore the success Woolworths and its contribution to the Australian economy.

The top two brands in terms of value sales in Australia in 2014 were grocery retailer giants Coles and Woolworths. Resulted due to the economies of scale of their mother companies, Wesfarmers and Woolworths, these 2 grocery retailers led total retail sales in 2014 by contributing 39% of overall retail sales. In 2014 Wesfarmers was ranked number one within Australia in terms of sales as a result of its good position in a wide number of niche, which further grew by venturing into new departments, such as home improvement. Somehow we can say this retailing industry is not so much of attraction for a business because of the growing competitions, but still as we see the growth and expansion of Aldi, we can say it is a good idea to invest in retailing

Woolworths and Coles strong power is becoming the deciding factor of Australia’s economic health. Both of these are supermarket giants which are eliminating the competitors from the market and, the local manufacturers and farmers are also feeling pressurized. Woolworths and Coles have brought in the situation of duopoly, in the situation of duopoly two businesses, dealers or organizations control the whole market for definite services, product or industry. As there is development in the market share of the two supermarket giants the supplier’s margin is being crushed. 80% of the share of the Australian grocery market is held by both of them together and globally also they hold unique positions.

This Appendix includes guidance for reviewing the Office of Inspector General’s (OIG’s) attestation engagements conducted in accordance with Government Auditing Standards (GAS), Chapter 6, and the American Institute of Certified Public Accountants’ (AICPA’s) Statements on Standards for Attestation Engagements (SSAE). When an auditor conducts an attestation engagement under generally accepted government auditing standards (GAGAS), the engagement must be conducted in accordance with the SSAEs and additional GAGAS standards. This appendix is not intended to replace auditor judgment, and while comprehensive, the peer review team may

The Lakeside Company: Auditing Cases, 12th edition, has been updated in light of the accounting

The Australian Supermarket Industry is the very hot topic that’s why very interesting topic now days. The Australian supermarket and grocery stores have a very severe competition in Australia mainly because of organizations competing in this mature industry are going towards cost reduction initiatives with competing advantage rather than product differentiation strategies, In other words business in this industry increase market share by charging lower prices while making reasonably fair profit. The growing popularity of ALDI – German based company of introducing its own label goods (products manufactured and sold under the retailers own brand) with low cost has forced the two giants –Woolworths and Coles to cut price

This article initiates with the introduction on what is audit planning. It basically addresses the audit plan strategy of K & S Corporation limited’s Financial Statements. Being an external auditor of the company, key factors to be considered in auditing the financials of the subject company have been discussed in the article. The most significant accounts at risk being materially misstated have been critically examined citing the possible risks associated with such accounts. Last but not the least, the article concludes with recommendations with respect to audit assessment plan of the company. Hence, this article seeks to act as a ready reckoner guide for an audit manager in audit planning of K & S Corporation Limited.