Introduction

This assignment will is more on the key differences between auditing and assurance services.
The audit is the process of evaluating the accounting entries present in the financial statement of
the company. Audit checks the accuracy of financial reports. Assurance is the process of
analyzing and used in the assessment of accounting entries and financial records. Assurance is
the process of verifying the records available in the company’s accounting record is as per
accounting standard and principle and it also verifies that accounting record is accurate or not.
Assurance is the assessing process, operations, procedure etc.
I will also focus on the how an audit plan for a certain company looks like. Audit plan is major
part of audit works for both internal and external audit. Good audit plan will help auditor to
minimize its risks, improve audit efficiency, and meet its objective at the minimum effort.
Auditors are required to prepare proper audit plan to ensure that all audit risks are identified and
correct audit strategy are deployed to detect all concerning risks areas.

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1.
Key differences between Audit vs Assurance
Audit and assurance are processes used for the evaluation of the financial record of the company.
They are hand in hand process. Audit and assurance is the process of verifying the records
available in the company’s accounting record are as per accounting standard and principle and it
also verifies that accounting record is accurate or not. The audit is the process of evaluating the
accounting entries present in the financial statement of the company. Assurance is the process of
analyzing and used in the assessment of accounting entries and financial records. Assurance is
usually followed by an audit.
The key differences between Audit vs Assurance are as follows –
 The audit is the process of evaluating the accounting entries present in the financial
statement of the company. Audit checks the accuracy of financial reports whereas
Assurance is the process of analyzing and used in the assessment of accounting entries
and financial records. Assurance also verifying the records available in the company’s
accounting record is as per accounting standard and principle and it also verifies that
accounting record is accurate or not.
 Audit tells about any misrepresentation done in financial records, any misuse of funds,
any fraud and any dishonest activities done in a company or done by company whereas
Assurance specializes in assessing and improving the quality of information in a
company. It helps in decision making in an organization.
 The audit is the first step followed by assurance.
 The audit is done by an internal auditor or external auditor whereas Assurance is done by
an audit firm.
 Auditing includes making sure ethically presentation, fairly presented, accurate and it
also check whether financial reports are as per accounting standard and accounting
principle whereas Assurance is used to check the accuracy of financial reports and it also
provides assurance to all the stakeholders that there is no misrepresentation done in
financial records, no misuse of funds, no fraud and no dishonest activities done in a
company or done by company.

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Audit Plan

Introduction

Our audit plan on The Namibia Students Financial assistance Fund (NSFAF) derives its mandate
from the NSFAF act, No. 26 of 2000. In terms of Section 4 of the above mentioned Act,
NSFAF's core function is to provide financial assistance, subject to the same act, to students, in
order to enable them to study or to do research; and More specifically, but without limiting the
foregoing, to facilitate the training of students in prescribed courses or fields of study at
approved tertiary institutions. To build a sustainable and reputable development funding
Institution contributing to the improvement of Namibia's human capital.

2 Audit Objectives
Our primary responsibility as auditor is to form an opinion on the Fund’s financial statements for
the year ended 31 March 2019. In addition to this requirement, we are committed to meeting
several important client service objectives.
For Directors - Independent audit opinion on the 31 March 2019 annual financial statements for
the Namibia Student Financial Assistance Fund
For the board and finance committee-Independent assurance that the financial statements of
the Fund are presented fairly and in accordance with IFRS for SME Communicating areas of
high risk together with our approach on how executive and senior management mitigate these
risks reporting significant issues where relevant
For management -Ensuring comprehensive communication of issues through:
 Items specific to the entity and key to management
 Ready access to core team members
Providing regular updates on future developments in legislation, regulation and taxation (PAYE)
Communicating areas of risk that are not sufficiently mitigated
Continually enhancing our level of service and responding to management’s evaluation of our
services, which we will seek on an on-going basis
Efficient process to complete financial statements requirements as outlined above

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3. Audit Questions
 What quality objective do you affect?
 How do you know these procedures are OK to follow?
 Tell me about your work process.
 Show me this process in your procedure.
 What is the specification for this inspection?
 What do you do when you find a defective part?
 What is the traceability for this product?
 Show me how you record the inspection.
 How do you know this product is good?

4. The scope of the audit

The audit will take place at Namibia students Financial Assistance Fund (NSFAF) and the scope
of the audit will focus on the following arrears:
Annual financial Statements.
Manual and automated controls
Analytical review, such as ratio and trend analysis
Test of details, including balance confirmations
Compliance with laws and Regulations
Follow up prior year matters
The audit will cover the period as from 1st April 2018 – 31 March 2019

5.
Audit Approach and Areas of Focus
What are the key features of our audit plan?
To achieve our audit objectives we will tailor our audit approach specifically for the entity,
having regard to our cumulative audit knowledge and experience and the changing nature of the
entity’s activities and processes.

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i. Risk assessment
Accounting policies
Audit Risk Planned -Compliance with IFRS for SME’s as an accounting framework as approved
by the Institute of Chartered Accountants of Namibia
Audit response -Evaluate the accounting policies used by the Fund to ensure compliance to the
framework

Compliance with laws and regulations

Audit Risk Planned - Labour Act, Social Security Act, Income Tax Act (PAYE), Affirmative
Action (Employment) Act, VET Act, NSFAF Act
Audit response -Review the monitoring controls and procedures in place to ensure compliance
with relevant laws and regulations.

ii. Year-end audit

Our intention is to rely on management controls where possible to limit the extent of substantive
procedures required. During our audit we will seek to understand the control environment. We
will evaluate and validate controls upon which we intend to place reliance.
Given our intention to place reliance on controls tested, we will try to limit substantive work
performed to mainly analytical procedures as opposed to tests of details. This will help to ensure
an efficient audit approach is achieved. Refer to Section 3.2 for an outline of the planned
approach for each key financial statement line item.
We will perform a full-scope audit of the Fund’s annual financial statements for the year ended
31 March 2019.
iii. Involvement of specialists
Our team include IT Risk Assurance & Income Tax (PAYE) specialists.
6. Organization of the Audit
We are requesting the Namibia Students Financial Assistance Fund to arrange an office space
where the internal auditors will be concluding their audit engagement during the period indicated
below.
Starting time: 04 April 2019
Ending time: 30 September 2019

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The engagement team will be as follows:

Name ROLE TELEPHONE

Kawato Nghilifilwa Corporate & International +26461 245 333
Tax – Assistant Manager
Kapakaye Mundja IT Risk Assurance - Director +264 61 245 385
Kalwenya Zelda IT Risk Assurance – +264 61 245 355
Assistant Manager

7. Reporting
The achievement of the above plan is dependent on the co-operation of a number of parties to
ensure timely provision of deliverables.
Presentation of audit strategy 30 May 2019 20% of the fee on completion of planning and
memorandum to management selections
Planning procedures to be May 2019
performed at interim and final
Interim audit fieldwork May 2019
Submission of interim report to Early June
management 2019
Final audit fieldwork 9 July 2019 70% of the fee due on completion
Final submission of RTM, AFS August 2019
and other deliverables to
management
Management comments on the August 2019
RTM
Approval of financial statement September
by directors 2019
Signed annual financial September 10% of the fee due on delivery of documentation
statements 2019 for signature

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References

1. Auditing Standard No. 12, Identifying and Assessing Risks of Material Misstatement.

2. Auditing Standard No. 13 and Auditing Standard No. 5, An Audit of Internal Control Over
Financial Reporting That Is Integrated with An Audit of Financial Statements.