BBAC601 Auditing & Assurance

Provide at least 5 ratios (using formulas provided by the text book or lecture notes) for the current and the prior year.
Comments on the ratios and any anticipated impact on the future audit work. – Comments on the client‟s ability to operate as a going concern.
Measurement and review of financial performance
Identify the measurement and review of financial performance (e.g. Director‟s remuneration, employees‟ performance measure and incentives, loans with conditions such as maintaining a specific liquidity ratios, etc.). – Discuss the potential impact of those identified on the future audit work.
Objectives, strategies and related business risks
Identify the objectives or strategies (any plan to develop new products or services, or to expand the business locations, use of information technology)
Identify the related business risks (the risk that that an entity‟s business objectives will not be attained as a result of external and internal forces brought to bear on an entity). – Discuss the potential impact of those identified on the future audit work.


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