Compare and analyse the quality of auditor independence

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Reference no: EM131444127

Tasks:

Part (1) Corporation Law

You are the financial accountant at Blackhill Holdings Limited and are keen to demonstrate your new skills as a recent Monash Uni graduate. To prepare for an important upcoming Board meeting, the CFO has come to seek your advice. The CFO has asked you to prepare two separate emails to him that answer the following questions.

First email

(i) Identify and clearly outline who is a related entity (both corporations as well as individuals) for the purpose of the Corporations Act (2001) Cth. Support your response by citing the relevant section reference. Please note that this request is general in nature and is not in response to a specific transaction.

Second email

(ii) On the basis that Blackhill Holdings Limited is considering listing on the ASX, what are the most relevant annual reporting requirements (at least three points) and Director responsibilities (at least three points) that the CFO should be concerned about. Your advice may consider other requirements of an ASX listed company and not just those imposed by the Corporation Law. Please explain why you consider these to be the most relevant and should be at the top of the list for Blackhill's CFO to be aware of.

(Note: Format of part (i) and (ii) are email)

Part (2) Auditing

(i) Compare and analyse the quality of auditor independence pre and post September 2013.

(ii) Identify and discuss an incentive and an opportunity for manipulation (or fraud) of accounts by Blackhill Resources (or decision by its board of directors).

Part (3) Ethics

The following excerpt is taken from Kitchen Best (Harvard Business Case, HKU948, page 6):

"Kitchen Best had no clear guidelines or vetting procedures for expenses incurred from wining and dining or entertainment provided to suppliers and customers. In fact, Ma regularly used kickbacks, entertainment and gift-giving to open and maintain accounts, and expenses for such activities were reimbursed to Ma through fake invoices booked as "entertainment expenses".

(i) Based on professional ethics and integrity, comment whether or not Ma's conduct of wining and dining is acceptable.

(ii) Suggest three recommendations to Henry Chan in terms of internal control procedures and policies to deal with the above situation.

Verified Expert

The paper is in relation to the various provisions of the Corporations Act (2001) of Australia viz. related parties. It also lists the responsibilities of the directors in case of listing of the company on ASX. It also touches the auditors independence quality. The importance of professional ethics and integrity and internal control measures are also being listed.

Reference no: EM131444127

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inf1444127

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len1444127

3/29/2017 8:05:16 AM

The submission should indicate evidence that students have understood the assessed topics presented in VIBE. Part (1): 7 marks for correct and complete answer in (i), 6 marks for correct answer in (ii) and 2 marks for good command in written communication skill. Part (2): 7 marks for correct answer in (i) and 8 marks for correct answer in (ii). Part (3): 8 marks for evidence that you have performed critical analysis on ethics and integrity, indicating that you have carefully thought and understood the underpinning aspects for the ethical conduct and decisions in (i); and 2.5 marks for each sound recommendation in (ii) up to a maximum of 7 marks in total.

len1444127

3/29/2017 8:05:11 AM

This assignment consists of three parts. Attempt all tasks and prepare a separate file for your answer to each part. It is important that you read and understand the VIBE before carrying out the assignment tasks. Total number of words for the tasks: 2000 words. You are required to submit both the hardcopy and the softcopy of your individual work. The hardcopy version should be submitted to the Assignment Box located in Building H Level 3. Attach a signed cover sheet with your submission.

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