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IOOF is an Australia based financial service provider and running various brands such as AustralianExecutor trustees, Bridges, consulted and various others. The audit is mandatory for the organization to ensure that books of accounts provide the true and fair view of the financial statements. Before getting into the audit assignment, the auditor has to identify the business risks in the entity as these can be areas for material misstatements. There are some of the accounts which are at higher risk of material misstatement. Despite these audit and business risks, we will be undertaking the Audit.
In the present assignment, we learn about the financial services provided by the IOOF. The company is with business risks which are originating from regular acquisitions and divestment of the subsidiaries. Along with this, the number of provisions and operating income and expenses is the account which is to through examine as they are with the risk of material misstatement. The company is committed towards ASX principal to maintain integrity in corporate reporting. Also, the existing auditor has not made any adverse comment about the company, based on which the audit assignments can be undertaken.
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