Auditing and Assurance Services

Assignment
Batch – 2020-23

Topic – Audit Strategy

Name – YUKTI MARU

Roll Number –
USCBB20160 Program

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-BBM-HR

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Vision Of Adani power
To be the globally admired leader in integrated Infrastructure businesses
with a deep commitment to nation building.

Mission Of Adani power

 To create and disseminate knowledge in infrastructure.

 To develop next generation professionals.
 To impact practice through industry engagement and continuing education for
practitioners.

Adani Power Limited is an Indian electric utility company headquartered in Ahmedabad,

Gujarat. It is a subsidiary of the Indian conglomerate Adani Group. The company was
established in 1996 and has since become one of the largest private power producers in
India, with a capacity of over 12 GW. Adani Power operates a number of thermal and
renewable energy power plants across India, including the largest private thermal power
plant in the country, the Mundra Thermal Power station.

AUDIT STRATEGY FOR COMPANY Adani Power

Client Name – Adani Groups

Type of Engagement – Statutory

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.

Objectives:

General objective of an audit is to provide an independent and objective

assessment of the financial statements, operations, and internal controls of
the company. The purpose of the audit is to provide assurance to
stakeholders that the financial statements are accurate and comply with
relevant accounting standards and regulations.
The audit can identify any areas for improvement in the company's
operations and internal controls. The objective of the audit is to provide
relevant and useful information that can be used by the company and its
stakeholders to make informed decision

Auditing strategy;

Review of company background and industry analysis: Understanding the

company's history, financial performance, and the power industry as a
whole is essential to inform the audit approach.

Risk assessment: Identifying and assessing the potential risks facing Adani
Power is crucial in determining the focus of the audit.

Planning the audit: Based on the risk assessment, the audit team will plan
the audit activities, including the scope, procedures, and timeline.

Testing controls: The audit team will test the company's internal controls to
assess their effectiveness in mitigating risks.
Audit team will test the company's internal controls to assess their
effectiveness in mitigating risks.

Review of financial statements: The team will perform a detailed review of

the financial statements to identify any discrepancies or irregularities.

Testing of operations: The audit team will test the operations of the
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company to ensure that they are efficient and effective.

Identify project to be audited Select the audit team Conduct preaudit

meeting to review project information Conduct audit analysis & prepare
report Present audit finding to project owner Prepare formal response In-
corporate findings into projects Audit team Design team/ project owner
Process of Auditing.

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 AUDITING PLAN
Audit plan for Adani power

Scope of Audit:
1.Audit of financial statements.
2. Audit of Inventories

As an AI language model, I don't have access to specific information

about a company's audit plan. However, a typical audit plan for a
company like Adani Power might include the following steps:

Planning and scoping: Review the company's financial statements and

other relevant information, set audit objectives and determine the
scope of the audit.

Risk assessment: Identify potential risks and areas of concern, including

financial reporting risks, compliance risks, and operational risks.

Control testing: Evaluate the effectiveness of internal controls, including

financial, operational and compliance controls.

Substantive testing: Verify the accuracy of financial statements,

including balance sheet, income statement and cash flow statements.

Data analysis: Utilize data analytics to identify trends, relationships and

anomalies in financial and operational data.

Reporting: Present the findings of the audit, including any

recommendations for improvement, to the company's
management.
 There are different stages of the auditing report
They are as follows:
1. We have to see the company and its issues that could be or should be the
main element in the auditing process.
2. Show read the case file before doing the auditing thoughly.
3. After studying the client’s business, the financial statements are
to be scrutinized to identify material risk of misstatement.
4. Physical verification of the assets too is required in this stage.
5.Deliverables required in this stage would be compliance
checklist, inventory risk checklist and suggestions of it by the
company.
5. Time required to carry out this procedure can depend on the
auditor.

2. Further Audit Procedure

• Inspecting the financial statements and ensuring the compliance to standards
• internal audit report and peer companies annual report will be required for this
process.
• The financial audit would be carried out by team 1
The 2nd team will carry out the inventory audit where it will be inspecting the
warehouse and the assets of the company.
For this, they will be requiring to physically verify and reconcile the physical
inventory count to the general ledger.
This will require audit evidence, resulting documents from the audit procedures.
This 2nd stage will be completed in 30 hours.

3.Reporting
1. This is the final stage where both the financial audit team and the
inventory audit team will draft a report to the audit head
2.This will lead up to a follow-up meeting with both the teams where the
recommendation on the risk are to be given.
3.Lastly the comments on the audit of the teams would be given by the
audit head and a final report would be made.
4. This process will result in the final report and the comments on it.