Reference no: EM132467879

Question 1 The role of the external auditor in CSR reporting

need to conduct an internet search for one (1) ASX listed company that issues an assured CSR report. With reference to that CSR report submit a report that:

Problem 1: need to summarise the structure and contents of the company's CSR reporting disclosures, including the associated guidelines used by the company in preparing their CSR report.

Problem 2: Outline the rationale for companies seeking assurance over their CSR reports.

Problem 3: Discuss the challenges and available opportunities for audit firms in assuring CSR reporting.

Problem 4: Indicate the level of assurance provided, and the nature of the evidence likely collected by the auditor to provide that level of assurance need to evaluate the usefulness of the CSR report to the company's stakeholders.

Question 2 Legal Liability

• Bryant & Stoker Pty Ltd was the corporate trustee of Stag Lyons Pty Ltd Superannuation Fund (SL Super). The members of SL Super were a medical practitioner (Dr Stoker) and his wife (Ms Bryant). The same couple were also the trustees for Bryant & Stoker Pty Ltd.

• In 2012 Dr Stoker and Ms Bryant sought and acted upon advice from Terry Jones, an investment specialist. He recommended that Dr Stoker and Ms Bryant invest their superannuation funds into an investment vehicle, FI Investments Pty Ltd (FI), specialising in fixed interest securities. Data-Easy Pty Ltd administered SL Super but was also related to FI. Terry Jones was a director of both FI and Data-Easy.

• When transferring funds to FI, Dr Stoker repeatedly made it clear to Jones that he did not want SL Super funds invested in loans. Although Dr Stoker did not ever ask Jones whether those instructions had been adhered to, the trustee of SL Super believed that all of SL Super's investments were in cash and shares. Dr. Stoker subsequently conceded that, until 2017, he had a great deal of trust in Jones. Unfortunately, from 2012 onwards, the FI management team invested all of SL Super's cash into secured loans but classified them as 'cash' in the SL Super financial statements.

• To satisfy his expectation, as trustee, that the SL Super financial statements 'gave a fair and true picture of its status and performance', Dr Stoker relied on the auditor. Each year Dr Stoker received documents (including an auditors' report and trustee representation letter to the auditor), delivered by Terry Jones, from the fund's administrator, Data-Easy.

• The auditor was Mr Barry Vann, who served as the appointed auditor of SL Super between 2012 and 2017. During all of those financial years, the audit reports for the fund were always unqualified. Dr Stoker took the view, from the documents provided by Jones, that Mr Vann had prepared SL Super's financial accounts, audited them and submitted the Australian Tax Office (ATO) returns.

• During the months of September and October 2017, Dr Stoker told Terry Jones several times that he wanted to withdraw all of SL Super's invested funds to purchase a commercial property. Mr Jones never actioned that request and in November 2017 FI and Data-Easy were both placed into voluntary administration. No funds were ever recovered from FI or Data-Easy by SL Super.

• Bryant & Stoker Pty Ltd has instigated legal action against Barry Vann, claiming negligence for not detecting the fraudulent misstatement of investments in SL Super's financial statements.

Required

With reference to relevant case law, auditing standards, and legislation submit a report that outlines and evaluates:

Problem 1: Indicate the level of assurance provided, and the nature of the evidence likely collected by the auditor to provide that level of assurance need to evaluate the usefulness of the CSR report to the company's stakeholders. the strength of Bryant & Stoker Pty Ltd's legal

Problem 2: Indicate the level of assurance provided, and the nature of the evidence likely collected by the auditor to provide that level of assurance need to evaluate the usefulness of the CSR report to the company's stakeholders. claim against Barry Vann; and
the opportunities for Barry Vann to reduce his liability, should he be proved negligent.