Assignment
You and a colleagues have been assigned to prepare a report based on your research of Mayne Parma Group Limited (MPG). Assuming that this is the first time that the audit will be conducted by your audit firm Bundoora Partners. The report must cover the areas detailed below. This will require extensive research and critical analysis of the annual reports and any other information that you have obtained.
In your report you must address the following issues: 3000 words
1. Executive Summary
2. Body
1. Auditors are required to have an understanding of their client's business and industry, including any recent announcements and developments.
• Describe briefly MPG's business operations. (225 words) what they sell, where (US, Australia)
• Describe briefly the industry that MPG operates in. (225 words) (Pharmaceutical industry)
2. Pharmaceutical companies are required to follow a number of regulations and legislative requirements for therapeutic goods.
• Identify and explain four legal requirements (acts/regulations) for pharmaceutical goods. (600 words)ex: how many share they can have, is this listed company, director's duty)
3. Referring to the annual report for 2016 (Items changed significantly)
• Analyse the year-to-year changes in the account balances for ten statement items (profit & loss; financial position; cash flows) that you consider to be significant. Explain why you have identified these particular items e.g. the size of fluctuation and possible reason for the change or nature of item.
4. Material misstatements
• Identify four major business risks (for pharmaceutical) (apart from the risk of product recall) and describe how those risks may increase the likelihood of material misstatements in the financial statements.
5. Going concern
• Assuming that the company had to recall some of its major brand products due to concerns about contamination and product tampering. This required the removal of these products from sale. Using the available financial and other information (assume the impact of this recall will be material) is there a potential going concern issue? Explain. (300 words)
6. Social Responsibility - find in sustainability report 2016 of the company.
• You have also been requested to research the company's social responsibility information and provide a summary in your report. As part of the audit engagement, would you recommend external assurance for the Sustainability Report? Explain. (300 words)
3. Conclusion
4. Reference
Please use appropriate references for resources used including accounting and auditing standards; regulations; and the Corporations Act 2001 etc (Harvard Style Referencing)
Attachment:- Results & Reports.rar