Audit and Assurance Case Study(SANCTUARY GROUP PLC) Essay

Audit and Assurance Case Study(SANCTUARY GROUP PLC) - Essay ExampleThe Companys subsidiary, Bravado International Group Limited, operates as a merchandise company that specializes in exploiting intellectual property rights for more than 100 artists and brands. Live Agency even represents over two hundred twenty acts for live performance. Also, its vexation is carried out by the Companys subsidiary, Helter Skelter Agency Limited. This company operates as a booking agency. The following paragraphs will explain how audit strategy is related to the fairness of the monetary descriptions of the.An audit(Pickett, 2006) is defined as the evaluation of an arranging, process, system, project or product. In write up, an audit is the independent assessment of the fairness where a companys financial statements are presented by its mangers or board of directors. It is done by competent, independent and objective person or persons, known as auditors or certified public accountants, who then i ssue a report on the results of the audit(Whittington, 1995). And, the audits are performed to determine the validity and reliability of financial information. Also, it provides an assessment of a company or a business system of internal control. The accounting and related recording systems must adhere to generally accepted standards set by governing bodies that regulate how businesses should presented in terms of balance sheet, income statement and statement of cash flows. The audit should be based on random sampling and it should not be an impudence that financial statements are error free. Auditing also provides assurance for third parties or external financial statement users that such statements present fairly a companys financial condition and results of operations.Further, strong guess management(Frame, 2003) will not slide by overnight. Managers who want to enable their organizations to be better at managing danger must recognize that the road to effective risk manageme nt is definitely long, twisting, and occasionally hazardous. start the journey is not as difficult. It may be even be triggered by a one-page directive issued by the chief operating officer of the organization following a small disaster, exhorting the organization to implement good risk management practices. But after the uninitiated, when the confetti has settled and the cheerers have been thrown away, the journey toward effective risk management is an uphill battle. In some way, what happens at this point is typical of many high-sounding corporate decisions. When light shines on the initiative, everyone scrambles to support it. When the elderberry bush managers turn their attention to other issues, the initiative begins to lose momentum, and without active support from top management, it falters. It may even hang on for a while until it dies and is buried. The risk related approach to external audit in the audit of Santuary Group Plc is based on control risk, audit risk and inhe rent risk. Audit risk is used to describe what is usually applied when in case of an audit of the financial statements of an entity. The first objective of the audit of the balance sheet, in