AUDIT PLAN

Understanding the Concept of the Audit Plan

Introduction1

Discussion2

Part a)2

Effect of this situation to the overall Audit plan2

Part b)3

Effect of this situation to the overall Audit plan4

Part c)5

Effect of this situation to the overall Audit plan6

Part d)6

Effect of this situation to the overall Audit plan7

Part e)7

Effect of this situation to the overall Audit plan8

Part f)8

Effect of this situation to the overall Audit plan9

Conclusion9

References11

Understanding the Concept of the Audit Plan

Introduction

Auditing is defined as a systematic and organized evaluation of financial data and other aspects related to an individual, organization and entity and government. Audit is the only way top determine the internal information of a company. All organizations are liable to publish their annual auditors report to educate the investors about the company and its overall performance. There are different firms that are present in the business environment that conduct audit of a company and issue their opinion about the information and overall status of the company. It is the responsibility of an auditing firm and the auditors associated with the firm to evaluate the information provided by the management of the company. These auditing firms are also known as statutory auditors or external auditors. There are certain provisions that guide the functioning and responsibilities of auditors in different situations (Russell, 2013, Pp. 70-85).

In the given assignment, we are going to analyse a case study of the company named Golden Ale Ltd. It is a multinational company that is operating in different countries. The case is about the situation that the auditors of the company are facing while giving their opinion and audit report. There are five parts to answer in this assignment; in the first part we are going to elaborate the impact of civil unrest in country x on the auditing procedure of the company, in the second part we are going to illustrate the concerns of head office with the reporting standards of its RPCs. Third question of the assignment is about giving understanding and reporting the impact of joint venture cause on the overall process of auditing. Finally, discussion regarding the environmental aspects and environmental pollution is elaborated and discussed. In short, the whole assignment and case study is about highlighting the overall issues that an auditor faces in different scenarios or in the worst case scenarios (Spencer Pickett, 2006, Pp. 100-130).

Discussion

Part a)

Civil unrest in Country X makes it impossible for branch auditors to visit the RPC to carry out audit procedures on your behalf. Due to a communications blackout, you are unable to ascertain whether the RPC is still functional. Country X contributes approximately 8% of Golden Ales turnover

Civil unrest is also known as civil disorder or civil strife. It is a situation in which one or more than one group of people starts creating civil disturbance or civil violence against the established system of a country. Commercial activates become slower due to riots, sabotages and demonstrations taking place in the civil unrest. At the same time, it also affects the overall process and ...