Reference no: EM131487886 , Length: word count:5000

Auditing and Assurance Team Assignment - Research and Presentation

Learning Outcomes -

• Apply the different phases of the audit to practical scenarios, working in teams in some instances.
• Evaluate the different audit opinions that could be expressed following the completion of an audit as they apply to different audit scenarios, working in teams in some instances.

Objective: The objective of this assignment is to effectively work in teams to formulate and recommend possible solutions to given practical scenarios.

The assignment is designed to test the following skills:

1. Your knowledge and your ability to research the issues and then apply the information appropriately using judgement.

2. Your teamwork and communication skills.

PART 1:

Review the audited annual reports including financial statements presented to the shareholders in respect of the two companies noted below and answer the questions. Please note that if the weblink fails to open you may need to "right click" on it and use "open hyperlink" to access it.

(A) ANZ Bank Ltd: Financial year ended 30September 2016: Annual Report.

(B) Wesfarmers Ltd: Financial Year ended 30 June 2016: Annual Report.

Questions to be answered by the team or group:

Assume that your audit team is responsible for planning the audits for both ANZ Bank Limited (year ended 30 September 2016) and Wesfarmers Ltd (year ended 30 June 2016) discuss your strategies in relation to the questions noted below -

1. (A) Identify at least three (3) inherent risks that you would have to consider for each company in the audit planning phase and justify your answer.

(B) Which audit procedures and/or tasks would you have planned to carry out in response to the inherent risks identified by you in (A) above? See the required format for your answers.

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

(B) Which audit procedures and/or tasks would you have planned to carry out in response to the high risks or problem areas identified by you in (A) above? Alternatively, in relation to which area would you have minimised your evidence gathering procedure? See the required format for your answers.

3. An Independent Auditor's Report to the Members has been issued for each company:

(A) Identify the type of audit opinion issued by each auditor, and justify your answer.

(B) Do you agree with the type of opinion issued by the auditor? Why or why not? Please indicate an alternative audit opinion if you do not agree with the one issued.

(C) Analyse the independent auditor's report with reference to ASA 700 Forming an Opinion and Reporting on a Financial Report. Has the auditor met all the requirements of this standard?

4. In relation to corporate governance, research and justify your answer to the following questions-

(A) Do the above companies have any process relating to corporate governance? Under which section of the annual report would you expect to find information on it?

(B) Do the companies have an audit committee and does it have the correct composition?

(C) In your team's opinion, are audit committees of benefit to the auditor, the company, the auditing profession and/or society as a whole?

Your audit manager has requested your team to consider the concept of "professional scepticism" and how it may impact on the quality of an audit.

In your own words (as a team) comment on the concept of professional scepticism and as a team conclude as to how important it is or isn't when you carry out an audit; justify your answer. Please note it must be your team's opinion not a reproduction of any legislation, the article or a standard.

REQUIRED:

1. Complete the questions in Parts 1 and 2 and submit your answers electronically using the link on the student portal under assessments overview and submission. Note to include the names and student ID numbers of the team members and submit the assignment cover sheet for each team member but submit just the one answer for your team under the team leader (identified in the other team members cover sheet).

2. Part 3: Team Meetings - As a team you will conduct meetings and will have had guidance on how to conduct meetings using an agenda and taking minutes etc. The team should have a minimum of three meetings (the team may have as many meetings as they need to) and should maintain agendas and minutes of those meetings. A copy of these documents should be attached to your team submission. Please make sure that all members of the team sign the minutes of the meetings in agreement to their accuracy. A pro forma is attached to this assignment for reference

3. Part 4: Group Presentation - prepare and present a group presentation of 10 minutes (13 minutes for 4 members) on all or some of the material you have researched in parts 1 and/or 2 above. All members of the group should be part of the presentation. Questions will be asked of the group during and/or after the presentation to test your understanding of the material. Presentations that exceed the time limit may be penalised.

Attachment:- Assignment File.rar