Reference no: EM132996102

HI6026 Audit, Assurance and Compliance - Executive Compensation, Independence and Covid-19 Impact on auditing

Learning Outcomes:

Evaluate the economic and legal basis for auditing and the applicable auditing standards and reporting requirements

Analyse and communicate knowledge of the auditor's professional judgement, legal and ethical responsibilities to their clients and third parties

Assess audit strategies including the evaluation of business risk and internal controls Apply audit concepts and processes to gather evidence and formulate judgments with respect to the underlying information

Required Task:

Part A:

Listed companies are required to make certain disclosures in their annual reports about the compensation paid to their top executives. One reason for this is to help interested stakeholders assess the performance of executives. It also helps executives and companies set appropriate compensation levels, based on what other companies in the same industry and/or of the same size are paying their executives. These disclosures are audited.

Required

Obtain the annual reports of 10 listed Australian companies in the same industry from the Year 2020. (Hint: See www.asx.com.au for a list of companies on the ASX, industry membership and links to company websites where you can download annual reports.) Extract the information on executive remuneration and describe the data using graphs and tables. Write a report addressing the following questions (justify your responses by referring to the data where appropriate).

1. How are the executives paid (cash, bonuses etc.)?
2. Discuss details about executive qualification, experiences and independence.
3. Which companies' executives are paid the most and what is the range of pay?
4. Which companies' executives' pay is most linked to the company's profit and/or share price performance?
(Explain any assumptions you have to make.)
5. Overall, what do you conclude about how Australian company executives are paid and how clearly the compensation data is reported?

Part B:

Explain Auditing in times of social distancing: the effect of COVID-19 on auditing quality proposed by Australian Securities and Investment Commission (ASIC) in the following situations:

1. What should be the focus areas for auditors under COVID-19 conditions?
2. Should audit fees be reduced when reviewing other cost saving initiatives?
3. Should an auditor delay their opinion until a limitation or uncertainty is resolved?
4. What should be influence of COVID-19 and going concern assessment?

The assignment structure must be as follows:

1. Holmes Institute Assignment Cover Sheet - Full Name, Student No., Contribution.

2. Executive Summary
a. The Executive summary should be concise and not involve too much detail.
b. It should make commentary on the main points only and follow the sequence of the report.
c. Write the Executive Summary after the report is completed, and once you have an overview of the whole text.

3. The Executive Summary appears on the first page of the report.

4. Contents Page - This needs to show a logical listing of all the sub-headings of the report's contents. Note
this is excluded from the total word count.

5. Introduction - A short paragraph which includes background, scope and the main points raised in order of importance. There should be a brief conclusion statement at the end of the Introduction.

6. Main Body Paragraphs with numbered sub-headings - Detailed information which elaborates on the main points raised in the Introduction. Each paragraph should begin with a clear topic sentence, then supporting sentences with facts and evidence obtained from research and finish with a concluding sentence at the
end.

7. Conclusion - A logical and coherent evaluation based on a thorough and an objective assessment of the research performed.

8. Appendices - Include any additional explanatory information which is supplementary and/ or graphical to help communicate the main ideas made in the report. Refer to the appendices in the main body paragraphs, as and where appropriate. (Note this is excluded from the total word count.

Attachment:- Group Assignment.rar