Assignment:
This assignment is to be based on AMP Limited (ASX code-AMP).
The assignment is to be completed in groups of two (members need not be in the same tutorial). The successful completion of this assignment requires extensive research on AMP's internal and external environments, operations and analysis of the 2017 annual report.
Word Limit- 3,000 words (excludes title page, executive summary and reference list)
In relation to the word limit, +/-10% variation of the 3,000 words (2700 to 3300) is acceptable.
Presentation Requirements:
The assignment shall be presented in the following format:
1. A table of contents
2. An executive summary followed by the body of the assignment
3. A reference list
4. Each page must be numbered. Appropriate reference citations throughout the assignment are expected.
Assume that the audit for AMP Limited (AMP), a financial services company, will be coming up for tender. You and your colleagues are required to prepare a client evaluation report based on your research for the senior partners of your audit firm. Your report should provide preliminary information as to whether or not the audit firm should consider tendering for the audit of AMP.
You should conduct extensive research and perform an analysis of the annual report of AMP for the year 2017 and any other relevant information that you have obtained (Hint: company's financial results, financial press and other business media).
In your report, you must address the following issues:
1. What are the areas in which AMP conducts its operations?
2. Which particular laws/regulations (other than financial related categories which include legislation such as: Australian taxation laws, Corporation Act 2001 etc.) affect AMP's operations? You need to identify and describe at least FOUR laws/regulations.
3. Identify and explain FOUR business risks that could have impact on the audit of AMP.
4. Based on your business risk analysis and understanding of AMP group and its environment, list and explain FOUR accounts to be at risk of material misstatements. You also need to identify the key assertion at risk for each identified account.
5. The recent Royal Commission highlighted a number of internal control deficiencies and fraud perpetuated on AMP clients for an extended period of time. These findings have serious ramifications for AMP. How will these findings affect your tendering decision?
6. Based on your understanding of the client and assessment of the client's business and audit risks, would you undertake the audit? Why?
The answers for above questions should be reflective of your in-depth understanding of how the AMP operates.