User Account

All Pages

Case study and report, Auditing

Assignment Help:
Assessment item 2
Case Study and Report
Due date: 19-08-2016
Length: 2000 words

Task
Question 1 (5%)

Case:

Battersby and Associates Chartered Accountants is a successful mid-tier accounting firm with a large range of clients across Australia. During the 2015 financial year Battersby and Associates gained a new client, Medical Services Holdings Group (MSHG), which owns 100 per cent of the following entities:
• Green Grass Hospital, a private hospital group
• Green Gardens Nursing Home Pty Ltd, a private nursing home
• Complete Cancer Care Limited (CCCL), a private oncology clinic that specialises in the treatment of cancer.
Year end for all MSHG entities is 30th June.

CCCL owns two relatively old linear accelerators used in radiation therapy. Recently radiographers using these linear accelerators have raised concerns that they have adverse radiation impacts on patients.

The CEO of CCCL, Adam Chase, has approached Belinda Battersby, the audit partner responsible for the financial report audit, about undertaking an engagement in respect of the linear accelerators. Adam has requested Belinda provide an opinion that the linear accelerators are fit for use. Adam pointed out that the CCCL audit is up for tender the following year and suggested that Battersby and Associates might like to take on the linear accelerators engagement without charging a fee as a gesture of goodwill.

Source: Adapted from the CA Program’s Audit and Assurance exam, December 2008.

Required
What should Belinda do? Use the Code of Ethics for Professional Accountants and the American Accounting Association (AAA) Model to help consider your response to this question.

The best way to present your answer is in a table as below:
American Accounting Association Model Decision making process
1. Determine the facts The facts are ...
2. Define the ethical issues
3. Identify the major principles, rules and values
4. Specify the alternatives
5. Compare values and alternatives
6. Assess the consequences
7. Make your decision



Question 2 (5%)

Good corporate governance reduces the audit risk. Independent directors have been recognised as critical to good corporate governance.

Task
Prepare a report for your fellow students that:
• describes the current Australian recommendations for the inclusion of independent directors in a board of directors,
• evaluates the continuing need for independent directors, and
• identifies barriers to the effectiveness of the role of independent directors.
Rationale
This assessment has been designed to assess your ability to:
• Be able to explain and critically evaluate influences on audit and assurance services including: Australian and international professional standards, statutory and common laws, regulatory bodies, and public expectations within a global market;
• Be able to exercise critical and reflective judgment and appreciate the value of ethical practice.

Related Discussions:- Case study and report

Audit evidence, State four factors considered determining sufficiency of a...

State four factors considered determining sufficiency of audit evidence

Audit evidence, four factors which influence the reliability of audit evide...

four factors which influence the reliability of audit evidence

Action if management refuses to provide representations, Action if Manageme...

Action if Management Refuses to provide Representations Whether management rejects to provide a representation which the auditor considers compulsory, this constitutes a scope

Explain audit-financial records, What is an audit, what financial records a...

What is an audit, what financial records are available and what is their individual function in completing your audit? Audit is an independent examination of financial informat

Describe the detailed audit works, Your firm has recently been appointed au...

Your firm has recently been appointed auditors of the Social Transport Corporation and you are commencing the audit of the wages system. The Corporation has about 2500 employee

Types of CPA services, Which are the types of CPA services

Which are the types of CPA services

Duties of an auditor in the stocktaking process, Problem: (a) Your cli...

Problem: (a) Your client has sought your advise on the procedures to be adopted for carrying out the stocktaking which is based on a year-end count. You are required to prepa

Audit reports - going concern, Audit Reports - Going Concern In the va...

Audit Reports - Going Concern In the vast widely of cases, the going to relate assumption is suitable and whether applied no mention require be made in the auditor's report.

Checking consolidation papers, Checking Consolidation Papers The audit...

Checking Consolidation Papers The auditor pays particular concentration to the calculation of: a) Goodwill arising on consolidation and acquisition b) Post-acquisition a

Fraud Risk Assessment, I need a 5 schedules like the sample on the attachme...

I need a 5 schedules like the sample on the attachment please follow the Instructions you will see in the instructions attachments 4 companies and you have to choose 5th one by yo

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd