The One.Tel Collapse - Auditing and Controls Case Analysis1. Governance & Control EnvironmentOne.Tel's entrepreneurial culture prioritised growth and image over transparency and accountability, resulting in weak internal controls and poor financial discipline. This aligns with the concept that "tone at the top" shapes the overall control environment (Gay, Simnett & Hofmann, 2023, p. 156).ASA 315.24-25 (Dec 2023 Compilation) requires auditors to evaluate whether management, with oversight of those charged with governance, has created and maintained a culture of honesty and ethical behaviour. A weak control culture, as seen at One.Tel, increases risks of material misstatement.2. Audit Planning & Risk AssessmentKey risks of misstatement at One.Tel included aggressive revenue recognition, dependence on shareholder funding, and poor financial reporting processes. According to ASA 240.26, revenue recognition is a presumed fraud risk, requiring specific audit responses.Auditors should have tested revenue trends using substantive procedures, confirmed debt and capital commitments externally, and assessed going concern in accordance with ASA 570.16-20. ASA 315.31-34 (Dec 2023 Compilation) requires auditors to assess inherent and control risk at the assertion level, considering both likelihood and magnitude of misstatement. Strong planning and scepticism are essential when auditing companies with aggressive growth models (Gay et al., 2023, p. 198).

The One.Tel Collapse Auditing and Controls Case Analysis 1. Governance & Control Environment One.Tel's entrepreneurial culture prioritised growth and image over transparency and accountability, resulting in weak internal controls and poor financial discipline. This aligns with the concept that \"tome at the top\" shapes the overall control environment (Gay, Simnett & Hofmann, 2023, p. 156). ASA 315.24-25 (Dec 2023 Compilation) requires auditors to evaluate whether management, with oversight of those charged with povernance, has created and maintained a culture of honesty and ethical behaviour. A weak control culture, as seen at One.Tel, increases risks of material misstatement 2. Audit Planning & Risk Assessment Key risks of misstatement at One.Tel included aggressive revenue recognition, dependence on shareholder funding, and poor financial reporting processes. According to ASA 240.26, revenue recognition is a presumed fraud risk, requiring specific audit responses. Auditors should have tested revenue trends using substantive procedures, confirmed debt and capital commitments externally, and assessed going concern in accordance with ASA 570.16-20. ASA 315.31-34 (Dec 2023 Compilation) requires auditors to assess inherent and control risk at the assertion level, considering both likelihood and magnitude of misstatement Strong planning and scepticism are essential when auditing companies with aggressive growth models (Gay et al., 2023, p. 198)