Income statement and balance sheet ratio

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Reference no: EM131974567 , Length: word count:2000

Research Assessment:

Download a company annual report which is listed in ASX and must be present in ASX S&P 300 index, along with this annual report, student should download corporate statement of same company.

Structure of your research report:

1. Executive Summary of the assessment

2. Focus in each headline the implication of ASX Corporate Governance Principles from your selected company (reference link B). Conceptualize and explain how to your selected company implements ASX CGC principles (read carefully from reference link A.3 and A.4 to follow)

3. Risk assessment (When performing an audit, you use risk assessment procedures to assess the risk that material misstatement exists. This step is very important because the whole point of a financial statement audit is finding out if the financial statements are materially correct. How exactly do you assess audit risk?) There are various steps of risk assessment procedures, but your report will focus mainly:
Recognizing the nature of the company, what's the company's market overview? Who (if anyone) regulates the client? What's the company's business strategy? Computation of income statement and balance sheet ratio, and Development of common-size financial statements and focus on relevant audit risk and potential steps to reduce risk (reference link C).

ASX CGS Principles:
The Principles and Recommendations are structured around, and seek to promote, 8 central principles:

1. Lay solid foundations for management and oversight: Your selected company should establish and disclose the respective roles and responsibilities of its board and management and how their performance is monitored and evaluated.

2. Structure the board to add value: Your selected company should have a board of an appropriate size, composition, skills and commitment to enable it to discharge its duties effectively.

3. Act ethically and responsibly: Your selected company should act ethically and responsibly.

4. Safeguard integrity in corporate reporting: Your selected company should have formal and rigorous processes that independently verify and safeguard the integrity of its corporate reporting.

5. Make timely and balanced disclosure: Your selected company should make timely and balanced disclosure of all matters concerning it that a reasonable person would expect to have a material effect on the price or value of its securities.

6. Respect the rights of security holders: Your selected company should respect the rights of its security holders by providing them with appropriate information and facilities to allow them to exercise those rights effectively.

7. Recognise and manage risk: Your selected company should establish a sound risk management framework and periodically review the effectiveness of that framework.

8. Remunerate fairly and responsibly: Your selected company should pay director remuneration sufficient to attract and retain high quality directors and design its executive remuneration to attract, retain and motivate high quality senior executives and to align their interests with the creation of value for security holders

Risk Assessment

Assessing Risk with Analytical Procedures: Do Systems-Thinking Tools Help Auditors Focus on Diagnostic Patterns?O'Donnell, Ed; Perkins, Jon D. Auditing; Sarasota Vol. 30, Issue. 4, (Nov 2011): 273-283.

Attachment:- Resources Reference.rar

Reference no: EM131974567

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Reviews

len1974567

5/8/2018 1:59:18 AM

Appropriate resources and correct referencing (2 marks). Used four or more sources. All work has been referenced correctly as per Harvard referencing. requirements. Used two or more sources. All work has been referenced correctly as per Harvard referencing. requirements. Used one or more sources. All work has been referenced within the body of the answer and in the reference list, with some omissions or errors in terms. No additional sources (other than the textbook) used. Others’ work is not always acknowledged and there are a number of errors or non-compliance with the Harvard referencing. requirements.

len1974567

5/8/2018 1:59:05 AM

Professional communication using a business report format. (Note: you are required to space between paragraphs; use Times New Roman 12 pt; use 1.5 or double line spacing) (2 marks). Work is in a report format and contains distinct understandable statements with no errors. There is a sophisticated use of language. Extremely well organised. Content is structured in a manner that facilitates the reader’s understanding. Work is in a report format and contains distinct understandable statements with minimal errors. Answer is well organised. Content is structured in a manner that facilitates the reader’s understanding. Work is in a report format. There are minor spelling, grammar and punctuation errors. Work shows evidence of proofreading. Well-structured with one main idea or argument provided per paragraph arguments/ideas Some spelling, grammar and punctuation errors found but the work is readable and structured. Some attempt at a business report format. Work may include too many ideas in one paragraph.

len1974567

5/8/2018 1:58:58 AM

Identification and evaluation of the influences of balance sheet and income statement ratios and risk assessment and evaluate potential audit risk and respond to risk (8 marks) Provides a comprehensive synthesis and critical evaluation of the influences of balance sheet and income statement ratios and risk assessment and evaluate potential audit risk and respond to risk. Provides an advanced synthesis and critical evaluation of balance sheet and income statement ratios and risk assessment and evaluate potential audit risk and respond to risk. Provides at least a competent evaluation of risk assessment and respond to risk. Provides a competent synthesis and critical evaluation of balance sheet and income statement ratios and risk assessment and evaluate potential audit risk and respond to risk. Provides a basic evaluation of the remaining component. Provides a basic critical evaluation balance sheet and income statement ratios and risk assessment and evaluate potential audit risk and respond to risk; failure to evaluate proper risk assessment and reduction to potential risk.

len1974567

5/8/2018 1:58:52 AM

Criteria High Distinction Distinction Credit Pass Use of critical and reflective judgment in corporate governance principles practice in the application of the ASX CGC guide (8 marks) Complex and detailed application of the corporate governance decision guide demonstrating strong critical and reflective thinking the use of the guide. There are extensive relevant references to ASX CGC principles. Logical application of the corporate governance decision guide demonstrating strong critical and reflective thinking the use of the guide. There are wide-ranging relevant references to ASX CGC principles. Minor problems with the application of the corporate governance decision guide demonstrating strong critical and reflective thinking the use of the guide There are some relevant references to ASX CGC principles. Provide basic application of the corporate governance decision guide demonstrating strong critical and reflective thinking the use of the guide including some references to ASX CGC principles.

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