Reference no: EM13832147

Assessment
Word limit : Maximum 2500 words

The group assignment aims to:

1. Give students an understanding of real life auditing issues

2. Help students understand the link between theory and practice; and

3. Foster students' research, team-working, critical analysis and written communication skills.

You should give careful consideration to the selection of members comprising the group. All groups must be formed and groups should provide the names of members to the lecturer-in-charge during lecture period. It is very important for all members to take an active part in completing the assignment and make an equal contribution.

Student from groups must make a brief presentation of not more than 5 minutes' duration in week 4 classes (preferably during tutorials) about the reason behind choosing a company, and allocation of work between the group members, and the plan of the research. In week 7 classes, student must make another brief presentation (less than 10 minutes' duration) about the group's work in progress that address at least 5 out of 10 required points to be made. The student must make a final presentation about the final findings in week 11 or week 12. 10% (2% in final mark) of the assessment marks for any student who fail to form a group or present the findings in time will be deducted from each of the progress check presentations. In other words, the maximum marks for any group assignment submitted without making any prior presentations will be only 14%. Each student should also complete the "Peer Evaluation of Team Members" sheet and hand it in to the lecturer-in-charge.

An online assignment submission link (Turnitin) will be made available in LEO. Only one member of the same group should submit the assignment. The assignment must be submitted in Word document. The assignment marker will then return the marked assignment in the "assignment feedback" drop-box in LEO.

In consultation with the Lecturer-In-Charge, students are required to examine a corporate scandal that involved improper accounting practices and the role of auditors from the list provided below (if you would like to examine a case that is not listed here, please obtain consent of the lecturer-in-charge. You are expected to cite at least five (8) acceptable sources. If you are not clear what constitutes an acceptable source, please consult the Lecturer-In-Charge.

Parmalat Storm Financial

Xerox AWA

WorldCom Tyco

Fannie Mae Merck

OneTel Nortel Networks

Clive Peeters Phospagenic

Opes Prime Harris Scarfe

Lehman Brothers

You are required to write a business report addressing the questions. Your report should include an introduction, conclusion, appropriate headings, and diagrams or graphs where appropriate.

1. Describe the company, type, size and location of business.

2. What was the accounting scandal? How did they do it? Who was involved? When it did take place? Who were the stakeholders in this situation (both inside and outside the firm)

3. What was the impact of this violation on the stakeholder?

4. Describe what accounting principle (s) they violated.

5. How did the misdeed affect the share price and the company overall?
6. Dollar value of the scandal.

7. What was the role of the auditor in this situation?

8. How did the auditor's involvement impact the situation?

9. What are the latest developments or current status (prison sentences, charges, etc?)

10. What were the lessons learned?

CRITERIA FOR THE ASSIGNMENT

Describe the company, type, size and location of business

What was the accounting scandal? How did they do it? Who was involved? When it did take place? Who were the stakeholders in this situation (both inside and outside the firm)

Describe what accounting principle (s) they violated.

What was the impact of this violation on the stakeholder?

How did the misdeed affect the share price and the company overall?

Dollar value of the scandal.

What was the role of the auditor in this situation?

How did the auditor's involvement impact the situation?

What are the key outcomes of the scandal ((prison sentences, charges, etc?)

What were the lessons learned?

Format & presentation

Extension for an assignment

Students may apply for consideration of circumstances which significantly hamper their participation or performance in an assessment. These circumstances include temporary or permanent disability or exceptional and unforeseen circumstances.

Applications for consideration should be submitted to the lecturer-in-charge before the due date for the assessment task. Requests for extension must be made on the appropriate form on or before the due date for submission, and must demonstrate exceptional circumstances which may warrant the granting of an extension.

PEER EVALUATION OF TEAM MEMBERS
Each student should complete this from with respect to other students in the syndicate and hand it in to the lecturer-in-charge.

Name (write full name) Meetings Quality and quantity Cooperation and team work Follow through Total score

Meetings:

1 Rarely attended meetings and when attending arrived late or left early

2 Attended some group meetings, arrived late or left early on occasion

3 Attended most group meetings, arrived on time, stayed for length of time scheduled

4 Attended all meetings, arrived on time, stayed longer than the scheduled meeting time

Quality and quantity of output

1 Contributed very little, if at all, to the paper

2 Ideas were weak and input limited, performed only work assigned

3 Provided useful input most of the time and was helpful in getting tasks accomplished

4 Always provided valuable input into the project and facilitated discussions

Cooperation and team effort

1 Created problems and was disruptive

2 Went along with whatever the rest of the group decided

3 Sometimes led the group, provided support for other team members on occasion

4 Led the group in establishing a cooperative team environment

Follow through

1 Rarely completed assignments, work completed was often not useful

2 Required some prompting to complete assignments on time, several changes required

3 Completed work on time with some changes required

4 Completed assigned work on time and error free.