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ACCT6006 Auditing Theory and Practice - Laureate International Universities

Learning Outcome 1: Analyse case-based scenarios by identifying and evaluating risk factors and their implications for audit planning and evidence gathering.

Learning Outcome 2: Design an audit strategy to address the risks of errors in financial statements via analysis of appropriate audit evidence.

Learning Outcome 3: Analyse and evaluate the internal controls and substantive testing procedures as appropriate to various audit scenarios.

Learning Outcome 4: Critically evaluate the evidence gathered during the auditing process, propose an appropriate audit opinion and choose the appropriate audit report to be issued based on the results of an audit.

Task Summary

Students are required to work in the group with maximum of three members. The assessment is designed to assess the subject learning outcomes above including students'
ability to research audit related issues and apply their knowledge to real cases. Students are expected to develop a professional report addressing tasks within following areas:

i. Inheret risk identification
ii. Audit procedures in response to inherent risks identified
iii. Analytical review of the financial statemets with the purpose of identifying areas of concern or comfort
iv. Susbtantive audit procedures addressing the identified risks
v. Audit report, its basis and legal issues
The report should include an Excective summary, Introduction, Body (covering all tasks) and Conclusion.

Context:
The case study requires students to work in a group and develop a professional report.

A key aspect in your group's choice of format/layout should be to ensure you impart your key messages effectively (i.e., complete the requirements) and efficiently (i.e., it should be succinct and take into account the word limit).

The report should be coherent and consistency is expected throughout (e.g., formatting, language style, linkages between the parts).

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').

Instructions:
Review the Financial Year 2019 audited annual reports including financial statements presented to the shareholders for the following organisations:

• Ramsay Health Care Ltd
• Telstra Ltd

Assume that your audit team is responsible for planning the audits for both companies for the most recent financial year. Discuss your strategies addressing each of the tasks below:

1. Identify at least three inherent risks that you would have to consider for each company in the audit planning phase and justify your answer. Cite the relevant ASAs/ISAs to support your answer.

2. Which audit procedures and/or tasks would you have planned to carry out in response to the inherent risks identified above? Cite the relevant ASAs/ISAs to support your answer.

3. Carry out an analytical review on the financial statements of these companies in the planning phase and identify areas of concern (high risk, problem areas) or comfort. Identify at least three areas for each company and justify your answer.

4. Which audit procedures and/or tasks would you have planned to carry out in response to the high risks or problem areas identified above? Alternatively, in relation to which area would you have minimised your evidence gathering procedure?

5. Discuss ethical and legal responiblities/liabilities of the auditors in case they would have given an inappropriate audit opinion. Discuss safeguards available to the auditors.

Effective communication, Presentation quality and peer review
The report should be expertly presented, persuasive, logical communication, coherent and consistency is expected throughout (e.g., formatting, language style, and linkages between the parts).

Each group member is required to assess other members on the basis of collaboration and contribution towards the assessment tasks. Please include the peer review commentary at the end of your assessment after the conclusion section. Peer review marks have to be allocated in line with the learning rubric placed at the end of the assessment brief.

Attachment:- Auditing Theory and Practice.rar