Reference no: EM132987023

ASSIGNMENT QUESTION

You have been assigned to a team to determine if your audit firm should accept the audit for Qantas Group (ASX Code: QAN). 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:

1. Provide an overview of Qantas's business and industry (Transportation Service industry) which you believe will be relevant to an audit and explain why this information would be relevant. Please check Chairman and CEO report page (4-7) on the Annual report for details of company information. Note: Please state the overview of business and industry from an auditor's point of view.

2. Identify 3 areas of audit risk at entity level and transaction level of Qantas 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). Note: For this assignment, please discuss 3 major business risk related to business and industry.

3. Review Qantas's internal control structure under corporate governance practice (refer to Qantas's corporate governance statement, page 23,24) and give your opinions on whether you can rely on the internal control environment.

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

You can refer to the annual report for the year ended 2020 and any news articles, Company announcements on ASX, website of the company, reports by public accounting firms with regards to the transportation service industry, etc.