Reference no: EM132608167

Question 1)

a) In your opinion, do you think the Auditors of the Commonwealth Bank (EY) were negligent by not planning the audit properly and not familiarizing themselves adequately with the business and legal environment of the Commonwealth Bank? Discuss and provide reasons for your answer.

b) Do you think the Internal controls at the Commonwealth Bank were adequate if the system was unable to uncover and/or detect 57,000 counts of money laundering transactions? Did the auditors (EY) reviewed and assessed the Control Risk adequately? Discuss and provide reasons for your answer/s.

Question 2. Did the shareholders of Commonwealth Bank (Bank) suffer any losses as a result of the money laundering allegations against the Commonwealth Bank? If the shareholders did suffer any losses, will they be able to institute a legal action against the Bank and/or the auditors (EY)? Did the shareholders of Commonwealth Bank subsequently institute an action against any parties as a result of the losses which they have suffered? Discuss and provide reasons for your answer/s.

Question 3. In your opinion, did EY produce an appropriate auditors' report for the year ending June 2018 in light of the above allegation? If not, why not? Discuss and provide reasons for your answer.

Question 4. Present an argument of why a similar event is not likely to happen again. Your discussion should make specific references to how regulations (by ASIC and/or APRA) and auditing standards have changed since the issues were raised by the Banking Royal commission in Australia also stressing the importance of adequate audit planning and the audit risk model.