Reference no: EM131244089
AUDIT AND ASSURANCE
CASE STUDY - ASSIGNMENT DETAILS
INTRODUCTION
The assignment is based on a hypothetical audit client, Brilliant Construction Limited (BCL).
REQUIRED
Task 1
Assume that you are an audit manager at MFC Chartered Accountants. Your audit firm just gained a new client, Brilliant Construction Limited (BCL). You have been assigned to the audit of BCL. You are part of the team responsible for planning the BCL audit engagement for 2016. As part of the audit, you have been asked to obtain an understanding of BCL and its environment as per Auditing Standard ISA 315. The background information of BCL, including its internal environment, is provided in the case study. A comprehensive understanding about BCL's internal and external environment is crucial in ensuring an effective and efficient audit. This is especially true given that this is the first time your firm is working on the audit of BCL.
You need to do an extensive research on BCL's external environment, including the economy and the industry that the company is operating in. In order to do this, you need to gather relevant information from various sources such as financial news, industry reports, government statistics etc.
Based on your analysis of BCL's internal and external environment, identify two key accounts at risk. For each of the account, explain the main assertion at risk. You need to justify why the accounts are at risk based on your analysis of the client's internal and external environments.
Task 2
Your audit team has performed analytical procedures. These include comparing the client's ratios with the prior years and industry average. The unaudited income statement for the year ended 31 July 2016 are provided below together with the audited income statement for the years ended 31 July 2015, 2014. You are also provided with a number of ratios calculated based on the 2016 unaudited Income Statement and 2015 and 2014 audited Income Statements.
Presentation
To get 1 mark, your assignment should be presented professionally in a format as if it were to be presented to an audit committee meeting. When appropriate, the use of tables, graphs and charts is highly encouraged. However, the assignment must be largely based on the text in paragraphs.
Assignment without a proper formatting will receive no mark for presentation.
Length
Maximum 1000 words (font size 12, 1 ½ line spacing, Times New Roman). The 1000 words include the body of the assignment and footnotes. It excludes cover sheet, title page, executive summary (optional), appendices and list of references. Students should not use appendices to circumvent the restrictions on the length of the assignment.
See the attached file for complete information.
Attachment:- AUDIT AND ASSURANCE assignment.rar
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