Understanding planning stage of the audit process: review of client business and perform audit risk analysis

ASX Listed Company I chose : AMAYSIM AUSTRALIA LIMITED AYS Telecommunication Services Please do the research based on Australia Auditing and Assurance services. Assume that you are audit senior in an accounting firm. Your firm has recently won an audit for a ASX listed company (AUstralia) that you have selected in your assignment. The assumptions are that your firm does not have any other clients that operate in this industry and your audit partner is concerned about his lack of knowledge of the industry the company is operating in. He is aware of the requirements of ASA 315 (par 25 and 26). (Australia) Your audit partner asks you to prepare a memo/ report on the ‘state of the company’s industry’ and associated risk factors. Your report must cover or at least address the requirements below and exhibit effective communication (attributes such as coherent writing style, proofreading and proper referencing) Required: write a report to your audit partner to answer the following research questions: a) Indicate three positive or negative signals from the company’s good and bad corporate governance observed in the company’s annual report. (references may be made to the Corporate governance principles and recommendations issued by the ASX Corporate Governance Council in August 2007) *(Australia)* b) Prepare details to the audit partner on the ‘state of the company’s industry’ and associated risk factors. The state of the company’s industry should at least demonstrate the relevant statistics figures released by ABS or equivalent. Identify two major audit risk areas, and explain the potential impact of the audit risk on the company’s financial statements; and detail the auditing procedures to verify the account balances impacted by the risk. c) Identify two relevant general balance-related and two transaction-related audit objective based on the finding from the risk factors in part b). The required audit objectives here must be specific to the company that you are working on and causal relationship with part b) must be established. d) Perform overall analytical procedures to identify significant changes in the financial positions or results of the business which require detailed investigation and explanation. The overall analytical procedures / risk analysis should at least cover the areas in liquidity, (can the business meet present obligations?) solvency (can the business continue to operate for the foreseeable future?) and profitability (is the business profitable?) Here’s website for the ASA 315 Australia http://www.auasb.gov.au/admin/file/content102/c3/ASA_315_28-04-06.pdf I will attached the books pages that related to this unit.