Auditing Assignment -
Learning Outcomes -
a. Explain and apply the principles, practice and process of auditing to practical situations.
b. Research, critique, interpret and communicate current and future auditing issues to specialist and non-specialist audiences.
Assessment Task Description -
Preamble - The assignment is to be completed by groups of four students. The submission into the campus specific assignment drop box (Melbourne Campus or Sydney Campus) is to made by ONLY one group member. For the purposes of this Assignment [Group], assume that you are a member of the audit team responsible for the audit engagement of one of the following Australian Stock Exchange (ASX) listed companies.
Your choice of company must be approved by your lecturer such that each group is the only audit team for one of the listed ASX companies.
Requirements -
For your approved company, having, as a minimum (see below), obtained the last two annual reports from your company's website, complete the following requirements;
1. Results of Analytical Procedures
Apply analytical procedures (simple comparisons and ratio analysis) to the financial report information of your company for the last three financial years. Explain how the results of your analytical procedures would influence your audit planning decisions for the audit for the last financial year.
2. Risk of Material Misstatement (Inherent Risk) at the Financial Report Level
Discuss fully your company's inherent risk at the financial report level for the five factors discussed in Gay and Simnett (2015, page 253-254); (a) Integrity of management (directors), (b) Management (Director) experience, knowledge and changes during the period, (c) Unusual pressure on management (directors), (d) Nature of the entity's business, and (e) Factors affecting the industry in which the entity operates.
3. Risk of Material Misstatement (Inherent Risk) at the Assertion Level
From your risk assessment (i.e., Requirements 1 and 2), identify three (3) specific account balances (not account classifications!) that you consider at significant risk of material misstatement. For each of the three account balances you identify:
a) Explain why the account balance is at significant risk of material misstatement.
b) Explain the key assertion at risk of not being valid.
c) Detail one (1) relevant substantive audit procedure to address the assertion at risk as identified in b) above.
d) Detail one (1) relevant practical internal control that would mitigate the risk in relation to the assertion at risk as identified in b) above.
4. Presentation Quality
Your assignment should be presented in a Report Format and as if it were to be presented to your audit team's audit partner.
At the end of each Requirement, including a Conclusion paragraph that sums up the key findings/issues. Hint; these Conclusion paragraphs may become the basis of your Executive Summary!
Begin the Executive Summary and each Requirement on new page.
The report should be coherent and so consistency is expected throughout (e.g., formatting, language style, linkages between the requirements (to obtain 70 percent or more), page numbering).
Note, groups who split up the requirements and work independently are likely to have more difficulty accomplishing this objective compared to groups who work on each of the parts collaboratively (i.e., as an 'audit team'). An assignment that has been put together last minute will be obvious to the marker and, therefore, will earn little, if any, marks for this requirement.
Note - Just need help with only Results of Analytical Procedures part of it not the entire assignment and there are calculations as well.
Attachment:- Assignment File.rar