Learning Outcome:
Apply the different phases of the audit to practical scenarios, working in teams in some instances
Evaluate the different audit opinions that could be expressed following the completion of an audit as they apply to different audit scenarios, working in teams in some instances
Objective: The objective of this assignment is to effectively work in teams to formulate and recommend possible solutions to given practical scenarios
The assignment is designed to test the following skills:
1. Your knowledge and your ability to research the issues and then apply the information appropriately using judgement
2. Your teamwork and communication skills
You are required to complete the assignment working in teams of 3 - 4 members. You need to obtain your lecturer's approval as to the size and members of your team. Your team presentation will be limited to 10 minutes per group of 3 team (13 minutes for 4 team), and each member of the team must present a part of it demonstrating an understanding of the technical aspects being tested and individual oral presentation skills. A separate mark will be given to the team for the collective presentation. Minutes of team meetings must also by maintained and submitted with the assignment. Your team's work must not be copied directly from any source; any work copied will result in a mark of zero. Submission details will be found in this assignment under "Team Cover Sheet Instructions".
PART 1:
Review the audited annual reports including financial statements presented to the shareholders in respect of the two companies noted below and answer the questions.
(A) CBA Ltd: Financial year ended 30 June 2017: Annual Report
(B) JB Hi-Fi Ltd: Financial Year ended 30 June 2017: Annual Report
Questions to be answered by the team or group:
Assume that your audit team is responsible for planning the audits for both CBA and JB Hi-Fi; discuss your strategies in relation to the questions noted below -
1. (A). Identify at least three (3) inherent risks that you would have to consider for each company in the audit planning phase and justify your answer.
(B). Which audit procedures and/or tasks would you have planned to carry out in response to the inherent risks identified by you in (A) above? See the required format for your answers below
2. (A). Carry out an analytical review on the financial statements of these companies in the planning phase and identify areas of concern (high risk or problem areas) or comfort. Identify at least three (3) points for each company and justify your answer.
(B). Which audit procedures and/or tasks would you have planned to carry out in response to the high risks or problem areas identified by you in (A) above? Alternatively, in relation to which area would you have minimised your evidence gathering procedure? See the required format for your answers below
3. In relation to corporate governance, research and justify your answer to the following questions-
(A) Do the above companies have any process relating to corporate governance? Under which section of the annual report would you expect to find information on it?
(B) Do the companies have an audit committee and does it have the correct composition?
(C) In your team's opinion, are audit committees of benefit to the auditor, the company, the auditing profession and/or society as a whole?
PART 2:
The website of Chartered Accountants Australia and New Zealand (CA ANZ) carries many articles on Audit Quality
Article - Audit quality:Achieving a high standard of audit quality builds trust and confidence in the audit profession
Your audit manager has requested your team to consider the concept of "Audit Quality" and how it may impact on the audit of historical financial information.
In your own words (as a team) comment on the concept of Audit quality and as a team conclude as to how important it is or isn't when you carry out an audit; justify your answer. Please note it must be
your team's opinion not a reproduction of any legislation, the article or a standard.
REQUIRED:
1. Complete the questions in Parts 1 and 2 and submit your answers electronically using the link on the student portal under assessments overview and submission. Note to include the names and student ID numbers of the team members and submit the assignment cover sheet for each team member but submit just the one answer for your team under the team leader (identified in the other team members cover sheet).
Part 3: Team Meetings - As a team you will conduct meetings and will have had guidance on how to conduct meetings using an agenda and taking minutes etc. The team should have a minimum of three meetings (the team may have as many meetings as they need to) and should maintain agendas and minutes of those meetings. A copy of these documents should be attached to your team submission. Please make sure that all members of the team sign the minutes of the meetings in agreement to their accuracy. A pro forma is attached to this assignment for reference
Part 4: Group Presentation - prepare and present a group presentation of 10 minutes (13 minutes for 4 members) on all or some of the material you have researched in parts 1 and/or 2 above. All members of the group should be part of the presentation. Questions will be asked of the group during and/or after the presentation to test your understanding of the material. Presentations that exceed the time limit may be penalised.