Reference no: EM132960764
ACCT6006 Auditing Theory and Practice - Laureate International Universities
Learning Outcome 1: Describe the nature of auditing and critically evaluate the benefits and limitations of financial statement audits.
Learning Outcome 2: Explain the current legal and ethical responsibilities of auditors including the application of the Accounting Professional and Ethical Standards.
Learning Outcome 3: Explain the fundamentals of audit planning, audit risk and materiality.
Learning Outcome 4: Demonstrate application of methodologies involved in the provision of audit services.
Learning Outcome 5: Describe the process of compiling an audit report and completing an audit engagement.
Task Summary
Students are required to work in the group with maximum of three members. The assessment is designed to assess the subject learning outcomes above including students' ability to research audit related issues and apply their knowledge to real cases. Students are expected to develop a professional report addressing tasks within following areas:
i. Inherent risk identification.
ii. Audit procedures in response to inherent risks identified.
iii. Analytical review of the financial statements with the purpose of identifying areas of concernor comfort.
iv. Substantive audit procedures addressing the identified risks.
v. Audit report, its basis, and legal issues.
The report should include an Executive summary, Introduction, Body (covering all tasks) and Conclusion.
Context:
The case study requires students to work in a group and develop a professional report.
A key aspect in your group's choice of format/layout should be to ensure you impart your key messages effectively (i.e., complete the requirements) and efficiently (i.e., it should be succinct and consider the word limit).
The report should be coherent, and consistency is expected throughout (e.g., formatting, languagestyle, linkages between the parts).
Note, groups who split up the requirements and work independently are likely to have more difficulty accomplishing this objective compared to groups who work on each of the parts collaboratively (i.e., as an ‘audit team').
Referencing
It is essential that you use appropriate APA style.
Instructions:
Review the Financial Year 2020 audited annual reports including financial statements presented to the shareholders for the following organisations:
• Aristocrat Leisure Ltd
• Blackmores Ltd
Assume that your audit team is responsible for planning the audits for both companies for the most recent financial year. Discuss your strategies addressing each of the tasks below:
1. Identify at least three inherent risks that you would have to consider for each company in the audit planning phase and justify your answer. Cite the relevant ASAs/ISAs to support your answer.
2. Which audit procedures and/or tasks would you have planned to carry out in response to the inherent risks identified above? Cite the relevant ASAs/ISAs to support your answer.
3. Carry out an analytical review on the financial statements of these companies in the planning phase and identify areas of concern (high risk, problem areas) or comfort. Identify at least three areas for each company and justify your answer.
4. Which audit procedures and/or tasks would you have planned to carry out in response to the high risks or problem areas identified above? Alternatively, in relation to which area would you have minimised your evidence gathering procedure?
5. Discuss ethical and legal responsibilities/liabilities of the auditors in case they would have givenan inappropriate audit opinion. Discuss safeguards available to the auditors.
Effective communication, Presentation quality and peer review
The report should be expertly presented, persuasive, logical communication, coherent and consistency is expected throughout (e.g., formatting, language style, and linkages between the parts).
Attachment:- Assessment Brief.rar