Reference no: EM132952662

AUDITING AND ASSURANCE ASSIGNMENT QUESTIONS

You have been assigned to a team to determine if your audit firm should accept the audit for Immuron Limited (ASX Code: IMC). Your team is required to prepare a client evaluation report for the audit partners, to enable the partners to make the final decision. Please include the following in your report:

Problem 1. Provide an overview of Immuron's business and industry (Pharmaceutical industry) which you believe will be relevant to an audit and explain why this information would be relevant. You need to consider any recent developments. Note: There will be many issues that should be included here but for this assignment, please discuss 2 major areas for business and 2 major areas for industry. 

Problem 2. Identify 4 areas of business risks for Immuron and give a brief explanation of the identified risks. Discuss how these risks can lead to risk of material misstatement. (you will need to mention specific transaction/ balance and assertions at risk and why you think these are risk areas).

Problem 3. Review Immuron's corporate governance practice (Refer to Immuron's corporate governance statement) and give your opinions on whether you can rely on the internal control environment.

Problem 4. Based on your findings, would you recommend accepting this client? (you are allowed to include any assumptions, especially with regards to the audit firm you work for)

You can refer to the annual report for the year ended 30 June 2020, any news articles, Company announcements on ASX, website of the company, reports by public accounting firms with regards to the pharmaceutical industry, etc. in order to complete your report