Auditing Assignment Help

Auditing Assignment Help

Auditing Assignment Help

Auditing is done for determining the accuracy or authenticity of a financial statement made by a company/organization. If explained correctly, auditing is a cool topic to learn about like the spirit of reading a ‘detective novel’. Yeah, it’s a bit complicated, but it’s said that auditors are like financial detectives. But how about you have a lot of assignments to do, and all of a sudden, the auditing assignment steps in! Not that cool, right? Relax, because our auditing assignment help experts can provide you assistance in preparing an excellent assignment. Rather than just bunching up some papers, we will help you to comprehend the topic and make it useful in your exams too. Now, if you are already good at this topic and you don’t need a lecture on this topic or you seek assistance only because something came up and you don’t have time to stack up papers; fine, we will deliver you with a quality assignment before the due date.

What is Auditing; let’s see how our auditing assignment help experts unearth it’s meaning?

As per the study books, Auditing is the systematic process of objectively obtaining and evaluating management’s assertions related to the company’s economic position and its financial statements. To conceptualize what is been done in auditing, let’s consider an example of a ‘company’ and its ‘investors’ and the role of ‘auditors’ between them; at the end of every annual calendar year, a company will issue something called financial statements. Those financial statements are issued to ‘investors’ (banks, bondholders, federal governments, agencies) of the company to make decisions in whether not to buy or sell their positions with that company. So an investor can examine the financial statements and decide on whether to buy more shares or to hold or sell the current shares.

Now regarding those financial statements, the investors can’t just believe everything that is given. So they have to assign ‘auditors’ who will verify and check for the reasonableness of those financial statements.

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Okay, now back to the topic. Let’s talk about what an auditor does. Well, rather than just providing a financial statement, a company’s management makes assertions or apply assertions to the financial statements. and the auditors will test those assertions. As the auditors test those assertions and confirm that the financial statements are appropriately stated, then the investors make an opinion, as stated before, to sell, buy, or hold shares.

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Before moving further, you need to understand what ‘assertions’ are. The company itself creates transactions that are combined into results and the management makes assertions. Assertions are claims made by management regarding certain aspects of a business. There are two types of assertions:

  • Implied or implicit: Let’s understand it with the help of a real-life example. When you go to a restaurant and you ordered a steak, it’s implied that the stake is being cooked in a clean facility, it is implied that when the waiter brings out your steak, it is cooked to temperature and then it’s been handled properly. That’s implied. They don’t have to tell you that because it's implied to the restaurant that that’s what they are going to do.

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  • Explicit assertions: These are things that have to be explained to the users. So, it’s not implied, they have to be told to you. For example, there are two doors and above it says ‘restroom’. We don’t know which one for males or which one for females. So the providers can’t just imply that we know which door goes to which, so they have to explicitly mention which one is men’s and which one is women’s. That’s an explicit assertion as it has to be told to.

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So to imply means, it doesn’t have to be told, it’s already implied based on the customer or based on what the financial statement experts have to be told to investors.

So we are looking at a matter of assertions that is claimed by management regarding certain aspects of the business. Now let’s continue with the example of the company and investors. Management of the company have assertions that say, they have 10 million dollars in cash, so they’re asserting that they ‘have’ 10 million in cash. That’s an explicit assertion because the company has to tell u that they have 10 million in cash. But they are also implying that they actually ‘own’ the cash, that they have the cash or there’s no other claiming that cash. Those are the assertions that an auditor has to test or examine. If all the assertions come out clean or true then an auditor can confirm that the company posses 10 million dollars. For confirming it, an auditor can go to the bank and see whether the company’s account truly has 10 million dollars and if there any claims to that money. Also, the auditor might look at the board of directors to see if part of their cash hasn’t been claimed by a provision in a bank or with investors. So they have to ‘investigate’ thoroughly and once they figured out all the evidence around that 10 million then they confirm that the money is own by the company and it’s properly accounted for. After that, the auditor will issue an opinion and it will go with the financial statement to the investors.

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So on a big broad level, what is auditing? Auditing is testing or examining management’s assertions and getting evidence on those assertions to come up with an opinion. That opinion is put into the financial statement and is released to the investors.

Do all those examples and assumptions helped you understand what auditing is? Or you still didn’t get it? Don’t worry, If we can explain it then we can draft it too. Our auditing assignment help experts will prepare assignments on any topic related to auditing, no matter whether it’s simple or complicated.

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