Audit risk and planning assignment

timer Asked: Dec 25th, 2017
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Question description

AUDIT RISK & PLANNING (20% of overall subject assessment)
You and your colleague are required to prepare a client evaluation report to the senior partners of your auditing firm. Client evaluation includes: evaluation of the integrity of management; identifying risks; assessing competence to perform an audit; and other ethical and legal considerations.
This report will be used to provide preliminary information as to whether or not the auditing firm should consider tendering for the audit of Immuron Limited (Immuron), a pharmaceutical company.
Assuming that the audit for Immuron will be coming up for tender, you are required to prepare a report based on your research. This will require extensive research and critical analysis of the annual report of Immuron for the year ended 30 June 2017 and any other information that you have obtained (a good source of information would be the company website). The Immuron annual report is available at:
under the “2017 ASX announcements” caption.

I have an auditing assignment. There are the following two questions to be done:

5. Using the Immuron 2017 annual report, discuss four (4) areas/accounts of concern. Why do you consider the chosen areas/accounts to be ‘risky’? (8 marks)
6. Based on your understanding of the client and assessment of the client’s business and audit risks, would you undertake the audit? Why? (4 marks).

The total words should be 800-900. If you don't understand still, I m attaching the following link with these questions where you can see the more details.

Tutor Answer

School: Purdue University


Audit Risk and Planning

Audit risk and planning
Immuron limited is a biopharmaceutical company based in Australia which focuses on
the sale and production of antibodies derived from dairy and is used in the process of
immunotherapy for human beings. Immuron makes use of versatile and unique technology which
has the capability to produce a very wide range of products with a very high profile with regards
to safety. The organization's technology has the capability to enable it to develop a lot of types of
medicines which help cater for medical needs ranging from immune-related disorders, cancers,
infectious ailments among others. Immuron produces a wide range of medicines which include;
prescription drugs, over-the-counter drugs, medical foods and dietary supplements, an example
of these drugs is Travelan which helps in preventing travelers' diarrhea.
Audit risks
Audit risks are risks which might be incurred during the process of auditing by both
external and internal auditors. Audit risks occur when auditors fail to detect material and
significant errors in financial statements and accounting reports. An organization like Immuron
have compl...

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Awesome! Exactly what I wanted.

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