For the following assignment task, complete the paper in approximately 2 pages word file by providing a good answer for scoring good marks.
Assessment Task:
The object of this assignment is to assist students to develop critical analysis skills in relation to the auditor's legal liability to their client, contributory negligence and the extent to which an auditor is liable to third parties.
The written assessment is to be presented in report format. The report is to have a maximum length of 1,000 words.
Context:
You have graduated with your accounting degree and recently commenced work with a leading firm of public accountants in Queensland. The firm has been auditing the financial reports for Opium Shopping Centres for a number of years, however, information has just been received by the firm's audit partner that could have serious repercussions for the firm. As a recent University graduate with top marks in your audit course, the firm's audit partner has asked you to prepare a report for the audit team.
Background information:
Opium Shopping Centres has borrowed heavily in recent years. The pressures of rapid expansion have been felt within its finance department and the chief financial officer (CFO) has begun to make mistakes. The CFO neglected to reclassify some of its debts from non-current liabilities to current liabilities following default on some terms of the contract with an international banking syndicate, and omitted contingent liabilities from the notes to the accounts. The billion dollar mistakes were not detected by either the directors or the auditors, and the financial report and audit report were published. Following discovery of the mistake the shares in Opium Shopping Centres lost value rapidly and the company was placed into liquidation.
Assignment Requirements:
The audit partner requires a written short report to be presented in simple language and in an interesting, easy-to-read format. It should:
Discuss the auditor's liability for losses suffered by:
i. Opium Shopping Centres investors, and
ii. other parties
Formatting Requirements:
Please apply the formatting instructions as illustrated below:
The Report will consist of:
• Cover page that represents the title of the report, the author (Student name and ID number) and the word count
• Table of contents
• 1-page executive summary
• The report itself
• References
Presentation:
The report is needed to be made in 1.5 line spacing, by using Times New Roman font with size 12, and 2 cm margins from all sides. You are needed to cite at least 3 present sources that must comprise items from the given categories: academic literature, textbooks, media and websites. This is important that the sources utilized are reliable, reputable and relevant, cited in a precise manner and properly referenced by employing the APA method.
The report must be presented in simple language and in an interesting, simple-to-read format.