Acct20040 auditing and ethical practice supplementary assessment:

Analytical procedures and audit opinion

Auditors have the responsibility to perform analytical procedures near the end of the audit that assist in forming an overall conclusion on the financial report. There are a number of auditing standards that provide guidelines to the auditors to perform analytical procedures. Although standard ratios are used for analytical procedures, the reliability of information and auditor’s judgement may affect an auditor’s conclusion based on the analytical procedures.   




1.                   Describe the purpose and concepts of analytical procedures based on the applicable auditing standards (ASA) in Australia.

2.                 From the period of global financial crisis during 2007-2010.

** select three Australian companies as follows:

(i)                 one company in insolvency, one company with auditor’s opinion on going concern issues and one company without any qualified opinion or emphasis of matter, and then

(ii)                Form your opinion on the performance, risk and continuity of these companies by applying your knowledge of analytical procedures you developed in 1) above.

3.                   Compare and contrast your opinion you developed in 2) above with the auditor’s conclusion about the performance, risk and continuity of the selected companies. 

4.                   Critically analyse how the reliability of information and auditor’s judgements can affect the results of analytical procedures. Refer to 3 refereed journal articles and auditing standards to support your answer.


Write a report addressing the above requirements. Marks will also be provided for an executive summary, a conclusion, grammar and references in appropriate style.

Submission criteria


This is an individual assessment to be submitted online on Moodle.

Word limit:

Minimum 2000 words and maximum 2,500 words. (Negative marking applies for exceeding word limit)

Minimum 3 referred journals to support your work.

All the annual reports must be attached as well in your assessment.

Due date for your submission is 17 August 2014  6.00pm AEST.


No extension will be granted on the due date. If you fail to submit on time, you will be awarded FAIL grade.

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