Reference no: EM133075039 , Length: word count:3000

HI6026 Audit, Assurance and Compliance - Holmes Institute

Assessment - Auditor Legal Liability and Corporate Governance

Learning Outcome 1: Evaluate the economic and legal basis for auditing and the applicable auditing standards and reporting requirements

Learning Outcome 2: Analyse and communicate knowledge of the auditor's professional judgement, legal and ethical responsibilities to their clients and third parties

Learning Outcome 3: Assess audit strategies including the evaluation of business risk and internal controls Apply audit concepts and processes to gather evidence and formulate judgments with respect to the underlying information

Assignment Topic - Auditors Legal Liability and Corporate Governance

"Auditor liability is increasingly concerning, both in terms of audit quality and the reputation of the profession but also in terms of the cost to the industry and the barriers this creates to competition within the audit market."

Required
Given the importance of professional liability to auditors and the negative publicity this creates for the profession as a whole, research a recent case "freedom foods accounting scandal in 2019-2020 "where an auditor/audit firm was sued for professional negligence. Students need to research this case from Australian perspectives.

With reference to the facts of the selected case, the significant Auditing and Accounting issues and the final judgement handed down in your selected case:

• What are the areas in which Freedom food groups limited conducts its operations and provide synopsis of the assignment?
• Provide a brief description of the key events and the factual issues behind this legal liability case.
• Explain which parties were deemed responsible and why. Outline the damages imposed or the penalties and consider whether they were appropriate
• investigate and explain the relevant issues in Auditing and Accounting raised by thecase,
• The root-cause of the issues such as; market pressure, organisational culture, fraud etc.
• Finally, provide recommendations and possible improvementsto:
o the Audit Strategy and the Audit Program,
o Other effective measures which would prevent the recurrence of the same litigation in the future and maintain the professional reputation of auditors
• Please download their Y-2021 corporate governance statement and indicates those change they have implemented post-accounting scandal period

The answers for above questions should be reflective of your in-depth understanding of how the Freedom food groups legal liability situation. You should conduct extensive research and perform an analysis of the annual report of FNP for the year 2019 and 2020 and any other relevant information that you have obtained. (Hint: company's financial results, legal liability press release, financial press and other business media).

Attachment:- Assurance and Compliance.rar