AUDIT & ASSURANCE - SCENARIO - AUDIT OF SUNSHINE LIMITED Essay

AUDIT & ASSURANCE - SCENARIO - AUDIT OF SUNSHINE LIMITED - Essay Example This particular aim is of significant importance for the reason that we would want to arrive and formulate the suitable and appropriate audit opinion based on a financial statement that is actual and exact. Further more, with this particular approached we will not only be able to detect material misstatements in the previous financial statement. But, it will also show to us how some factors like adequacy of internal controls, the nature of transactions that company utilises, how the company monitors and oversees the production, how responsive is the management in addressing issues, how the company responds to human resources and human relations concerns, the possibility of senior management oversight and similar concerns within the company itself may contribute to risk and to financial statement that is materially misstated. And as a rule of the thumb in the business environment, a materially misstated financial statement may lead to an inappropriate audit opinion. And an inappropria te audit opinion may in effect lead to estimations that are detrimental to the company’s growth, profit, and solvency. Second, the market of the company is highly competitive and volatile. As such is the market environment of the company, risk-approached will help us center on divisions and facets of the company that are more susceptible to risks and problems like sales, auditing, and personnel hiring. This specific strategy in auditing will allow us to focus and zero-in on the more ‘problematic’ departments and divisions of the company while maintaining the supposition that good policies are in placed and are being observed. At the same time, this style of auditing will present to us the conditions that allow the less problematic departments to function in a manner that is aligned to the company’s goals and objectives. Thus, allowing room for the possibility of coming up with a more