Reference no: EM131180993

Learning Outcome : Explain and apply the different phases of the audit to practical scenarios

Learning Outcome 2: Identify and evaluate the different audit opinions that could be expressed following the completion of an audit as they apply to different audit scenarios

Team - Case Study:
Students are required to form audit teams of 3 students (please get your lecturer's prior approval to change the team size) and complete the questions noted in the assignment details section on the next page. A copy of the minutes of team meetings must be attached to the
group assignment and submitted electronically as noted above.

The team will also carry out a peer review for team work and award each member of the team a mark (include justification) which will be added to the lecturer's assessment of the team to arrive at a mark for teamwork. Any work which has been copied or shared between teams or groups will result in a Fail grade for all students concerned. This assignment must be your teams own work and all members of the team will be awarded the same team mark. Your team's work must not be copied directly from any source; any work copied will result in a mark of zero.

Please check the marking rubric for each part to ensure that you have followed all the guidelines for presenting your work. The assignment will need to be submitted electronically via the portal by the due date. Please make sure you follow the policies and guidelines, especially those relating to presentation of written work, late policy and academic integrity. You should also familiarise yourself with the assessment marking rubric (attached) to guide you in how you can score marks.

Questions to be answered by the team or group:

Assume that your audit team is responsible for planning the audits for Qantas Ltd for the year ended 30 June 2015. Discuss your strategies in relation to the questions noted below -

1. (A). Identify at least three (3) inherent risks that you would have considered for the company in the audit planning phase and justify your answer.

(B). What audit procedures and/or tasks would you have planned to carry out in response to the inherent risks identified by you in (A) above?

2. (A). Carry out an analytical review on the financial statements of this company in the planning phase and identify areas of concern (high risk or problem areas) or comfort. Identify at least three (3) points for the company and justify your answer.

(B). What audit procedures and/or tasks would you have planned to carry out in response to the high risks or problem areas identified by you in (A) above? Alternatively, in relation to which area would you have minimised your evidence gathering procedure?

3. An Independent Auditor's Report to the Members has been issued for the company:

(A) Identify the type of audit opinion issued by the auditor, and justify your answer.

(B) Do you agree with the type of opinion issued by the auditor? Why or why not? Please indicate an alternative audit opinion if you do not agree with the one issued.

(C) Does the audit report conform to the different criteria according to the auditing standard?

(D) Are there any other matters or events that have taken place after the issue of the audit report that strengthens or weakens the auditor's opinion?

4. In relation to corporate governance research and justify your answer to the following questions-

(A) Does the above company have any process relating to corporate governance? Under which section of the annual report would you expect to find information on it?

(B) Does the company have an audit committee and does the audit committee have the correct composition?

(C) In your team's opinion, are audit committees of benefit to the auditor, the company, the auditing profession and/or society as a whole? Why or why not?

REQUIRED:
You are required to work as an audit team intending to present your findings to the Audit Manager (your lecturer):

1) Hand in a written version (one for the group) of your assignment,

2) Assess the contribution of each member in your team - scoring each one out of a maximum of 5 marks. Complete the peer review forms (one for each team member) and submit it with the written assignment.

In Summary submit one assignment for the group. It should contain -

1) The group's written response to the questions above;
2) A copy of the minutes of the group meetings
3) Peer review forms completed by each team member for all the other members.