Reference no: EM132790166

HI6026 Audit, Assurance and Compliance

Assurance, Audit Fees and Good Governance

Purpose: Students are required to explain demand of assurance, audit fees determination and application of ASX CGC principles. Students are required to analyse the root causes of demand for assurance and the pertinent issues from their selected company's and then specify what measures can be taken by auditors in selecting audit fees and in other ways application of ASX CGC principles and ensure professional integrity, good governance and reputation.

Learning Outcome 1: Demonstrate an understanding of the reporting requirements of auditing standards.

Learning Outcome 2: Demonstrate an understanding of the auditor's professional, legal and ethical responsibilities to their clients and third parties.

Required Task:

Part 1: Demand of adequate Assurance:

In 2002, the audit firm Arthur Andersen collapsed following charges brought against it in the United States relating to the failure of its client, Enron. Some other clients announced that they would be dismissing Arthur Andersen as their auditor even before it was clear that Arthur Andersen would not survive.

Required:
a. Explain demand from audit and assurance services under Sarbanes- Oxley Act (2002)?
b. Explain auditors understanding of corporate governance revision, update and arguments after SOX Act (2002)

Part 2: Audit Fees Determination and ASX CGC Principles

All companies are required to disclose in their annual reports the amounts paid to their auditors for both the financial report audit and any other services performed for the company.

Required:

a. Obtain a copy of a recent annual report (2019) from ASX Top 100 listed companies list (most companies make their annual reports available on the company's website) and find the disclosures explaining the amounts paid to auditors. How much was the auditor paid for the audit and non-assurance, or other, services? Explain your understanding about demand and supply theories of audit fees from this company?

b. Explain your selected company's (same selected company from question a) application of ASX CGC principles using Corporate Governance Principles and Recommendations (4th Edition) was released on 27 February 2019?

Attachment:- Audit Fees and Good Governance.rar