MAA705 Firm Auditing
Trimester 2 2019
Analysis exercise 1 Report
DUE DATE AND TIME: Thursday 29 August 2019 by 8pm AEST (week 7)
PERCENTAGE OF FINAL GRADE: 35%
HURDLE DETAILS: None for this exercise
Finding out Consequence Particulars
Unit Finding out Consequence (ULO) Graduate Finding out Consequence (GLO)
ULO 1 Exhibit data of theories and regulation regarding audit and assurance suppliers of every a financial and non-financial nature. 1
ULO three: Take into account acceptable audit and assurance procedures and responses that should be utilized to utterly completely different fashionable enterprise conditions. 5
ULO4: Use expert and ethical judgment in making use of associated licensed pronouncements to all phases of a given assurance engagement eight
ULO5: Discuss and justify accounting and auditing ideas in contexts involving every accountants and nonaccountants. 2
School college students who submit their work by the due date will acquire their marks and options on CloudDeakin by 20 September 2019 at 9am AEST.
Phrase limit: three,500 phrases most (excluding references). In-text citations, the introduction, physique and conclusion of the report are included throughout the phrase rely.
School college students who exceed three,500 phrases is perhaps penalised 1 mark (of the on the market 35 marks for this exercise) per 100 phrases over the phrase limit.
Description / Requirements
This analysis exercise consists of two parts. Each half is to be submitted to separate Dropboxes.
Half 1 (15 marks)
Primarily based on ISA/ASA 240 The auditor’s duties concerning fraud in an audit of financial statements (https://www.auasb.gov.au/admin/file/content material materials102/c3/ASA_240_Compiled_2015.pdf):
‘When determining and assessing the hazards of material misstatement ensuing from fraud, the auditor shall, based on a presumption that there are risks of fraud in earnings recognition, take into account which sorts of earnings, earnings transactions or assertions give rise to such risks.’
Draft an electronic message to your Audit Supervisor – Mrs Williams whereby you deal with the following:
1. Relying on the data in ISA/ASA 240 (seek the advice of with hyperlink above). Make clear the excellence between the accountability of administration, these charged with governance and the auditor in relation to the prevention and detection of fraud. (4 marks)
2. Discuss concerning the misunderstanding that exists in society surrounding the place of the auditor in relation to the prevention and detection of fraud in an audit of financial statements.
three. Current three the reason why an auditor presumes that there are potential risks of fraud concerning earnings recognition in entities. Simply keep in mind to make clear your causes clearly (three marks)
4. Current 2 examples (along with some ingredient) of circumstances of earnings misstatements which have been
reported throughout the media. (4 marks)
Half 2 (20 marks)
Based on the 31 December 2016 Annual Report for Woodside Petroleum Restricted (on the market on CloudDeakin), put collectively a planning memorandum for the audit affiliate which contains the following:
a. Identification of four (4) predominant enterprise risks of the company and an in depth clarification of why each concern acknowledged is a hazard to the enterprise (Phrase: The Chairman’s and CEO’s report and the administration dialogue firstly of the report will enable you to to find out these).
b. Outcomes of analytical procedures. (Please embody your workings in an appendix). It is advocate that you just put collectively a horizontal analysis and put collectively key ratios. Set up and make clear which changes throughout the horizontal analysis and which ratio outcomes would set off further investigation throughout the audit.
c. Your identification and clarification of four (4) inherent risks that you just decide from the enterprise risks and analytical procedures. (Phrase: enterprise hazard are normally not the equivalent as inherent risks) 12 marks
d. Identification of a key account and a key related assertion liable to supplies misstatement based on the inherent risks you identify partly (c). (Set up a key account and a key assertion for each
of the four inherent risks acknowledged partly (c))
e. An analysis of the final inherent hazard along with an proof of the weather that end result on this analysis. 6 marks
f. Planning materiality in a $ amount. It is best to embody a breakdown of your calculation and a justification of your number of base, the proportion used and your analysis of detection hazard.
Assume administration hazard is extreme. eight marks
(16 + 20 + 12 + eight + 6 + eight = 70 marks which is perhaps remodeled to a mark out of 20)
Advisable phrases for this half: 2,000 phrases. The calculation of the analytical procedures is not included throughout the phrase rely. A rubric is not useful for this part of the venture and subsequently is not equipped. This half offers proof of ULOs 1, three, 4 and 5, and GLOs 1, 2, 5 and eight).
Submit your work on-line to the venture Dropbox on CloudDeakin.
• School college students ought to submit a accurately referenced venture that complies with the Harvard referencing kind.
• Half 1 of your report is addressed to the Audit Supervisor, subsequently it should be written in an skilled tone.
• Half 2 of your report is a planning memorandum to the Audit Confederate and should be written throughout the acceptable format.
• It is best to protect a backup copy of the venture you submit, until the marked venture has been returned to you. Throughout the unlikely event that one amongst your assignments is misplaced, you need to to submit your backup copy.
• Any work you submit may be checked by digital or completely different means for the wants of detecting collusion and/or plagiarism.
• If you’re required to submit an venture through your CloudDeakin unit web site, you will acquire an electronic message to your Deakin electronic message deal with confirming that it has been submitted. It’s best to look at you possibly can see your venture throughout the Submissions view of the Mission Dropbox folder after add, and look at for, and protect, the e-mail receipt for the submission.
• Penalties for late submission: The following marking penalties will apply must you submit an analysis exercise after the due date and time with out an permitted extension: 5% is perhaps deducted from on the market marks, daily as a lot as 5 days, and work that is submitted better than 5 days after the due date just isn’t going to be marked. You will acquire zero% for the obligation. ‘Day’ means working day for paper submissions and calendar day for digital submissions. The Unit Chair may refuse to easily settle for a late submission the place it is unreasonable or impracticable to judge the obligation after the due date.
• Please ponder rigorously the have an effect on of late submission on achievement of the hurdle requirement on this venture.
• For additional particulars about academic misconduct, specific consideration, extensions, and analysis options, please seek the advice of with the doc Your rights and duties as a pupil on this Unit throughout the first folder subsequent to the Unit Data of the Sources area throughout the CloudDeakin unit web site.
• Setting up proof of your experiences, experience and data (Portfolio) – Setting up a portfolio that evidences your experience, data and experience will give you a priceless software program that can enable you to put collectively for interviews and to showcase to potential employers. There are a number of devices that it’s best to make the most of to assemble a portfolio. You is perhaps equipped with cloud home through OneDrive, or through the Portfolio software program throughout the Cloud Unit Web site, nonetheless it’s best to make the most of any storage repository system that you just like. Don’t forget that a Portfolio is YOUR software program. It’s best to be able to retailer your analysis work, reflections, achievements and artefacts in YOUR Portfolio. After getting completed this analysis piece, add it to your personal Portfolio to utilize and showcase your finding out later, when making use of for jobs, or further analysis. Curate your work by together with vital tags to your artefacts that describe what the artefact represents.