MA611 Auditing Assignment

Assignment Help Auditing
Reference no: EM132644001 , Length: word count:2000

MA611 Auditing - Melbourne Institute of Technology

Company - Black Cat Syndicate Ltd BC8

Assessment - Understanding a Client to Plan a Financial Report Audit

Learning Outcome 1: Explain and apply the principles, practice and process of auditing to practical situations.
Learning Outcome 2: Interpret the legal and ethical requirements involved in an audit and apply them to diverse situations.
Learning Outcome 3: Compare and contrast the organisation's and the auditor's responsibilities for an audit.
Learning Outcome 4: Explain the importance of planning an audit and distinguish the steps involved.
Learning Outcome 5: Identify and critically evaluate the risks inherent in an audit.
Learning Outcome 6: Research, critique, interpret and communicate current and future auditing issues to specialist and non-specialist audiences.

Assessment Task

 Part 1:Understanding a Client to Plan a Financial Report Audit
 Part 2: Risk of Material Misstatement (Inherent Risk) at the Financial Report Level
 Part 3:Format and Presentation Quality

Part 1: Understanding a Client to Plan a Financial Report Audit

You have recently completed your Bachelor of Business Degree - Accounting Stream at MIT and now working as a graduate auditor for a major accounting firm, Ernie and Youngster (EYS). EYS has just won the tenders for the financial report audits of the following ASX listed top 500 companies (as at 1 May 2019).

Your group's choice of company must be approvedby your lecturer such that each group is the only audit team for one of the above, Campus specific, ASX listed companies.

Having formed the audit team (i.e., assignment group), and assigned to the financial report audit of one of the above clients, (by your lecturer), your primary task is as follows.

As a part of the risk assessment phase for the financial report audit of your new client and in accordance with auditing standards (i.e., ASAs), your audit team (group) is required to gain an understanding of the structure and the business environment. By understanding the client's business, the audit team can identify potential risks that may have a significant effect on the financial report. This will assist the audit team to complete the financial report audit and fulfil a key responsibility.

Required

For your audit team's (group's) chosen client (as approved by your lecturer), address the following six areas.

1. General and industry-specific economic trends and conditions
2. Competitive environment
3. Product, customer and supplier information
4. Technological advances and the effect of the internet
5. Laws and regulatory requirements.
6. Other area

Your task is to research your client's sector and report back to your audit team leader. Your report will form part of the overall understanding of client's structure and its environment, which will help you plan for the financial report audit of this client.

You should concentrate your research on providing findings from those areas that have a financial reporting impact and are considered probable given your client's operations. In conducting your research, you should consider the following key market forces, as they relate to your client's operations.

Part 2: Risk of Material Misstatement (Inherent Risk) at the Financial Report Level

From your Understanding of the Client (i.e., Part 1), identify one(1) specific account balance (not account classifications!) that you consider at significant risk of material misstatement. For your chosen account balance:
a) Explain why the account balance is at significant risk of material misstatement
b) Explainone, key assertion at risk of not being valid
c) Detail one (1) relevant substantive audit procedure to address the assertion at risk as identified in b) above
d) Detail one (1) relevant practical internal control that would mitigate the risk in relation to the assertion at risk as identified in b) above.

Part 3: Format and Presentation Quality

As mentioned above, Part 1 should be presented in a ‘report' format.

A key aspect in your audit team's (group's) choice of format/layout should be to ensure you impart your key messages effectively (i.e., complete the requirements) and efficiently (i.e., it should be succinct and take into account the word limit).

As per the Submission Guidelines on page 1, the report also should be coherent, and so consistency is expected throughout (e.g., formatting, language style, linkages between the parts, page numbering).

Note, groups who split up the requirements and work independently are likely to have more difficulty accomplishing this objective compared to groups who work on each of the parts collaboratively (i.e., as an ‘audit team'). An assignment that has been put together last minute will be obvious to the marker and, therefore, will not earn many marks for this part.

Make sure all pages are numbered, and the text fits within the margins of your pages. Start each part on a new page and start each requirement of a part on a new page, making sure to include the relevant heading.

In terms of this part (worth 4 marks out of 40 marks), your ‘report' for this part must have a/an;
(i) Executive Summary (around 100 to 150 words - not included in word count),
(ii) Introduction that succinctly outlines the main theme (s) and requirements of this part of the assignment (around 150 to 200 words),
(iii) Body that specifically addresses the requirements of
Part 1 (around 1800 words) and
Part 2 (around 300 words),
(iv) Conclusion that specifically addresses (summarizes) Parts 1 and 2 (around 100words),
(v) Referencelist containing all cited works and
(iv) Proper English grammar, appearance.

Attachment:- Auditing.rar

Reference no: EM132644001

Questions Cloud

Find how much is the bond worth today : Suppose a Google.com bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 4.25%, how much is the bond worth today?
Find the preliminary net income : Find the preliminary net income. Provided $102,700 in service to customers, with $97,300 on account and the rest received in cash.
Find how much was the gain or loss experienced by briar : Find how much was the gain or loss experienced by Briar in reacquiring its 5% bonds? Provide the journal entries to retire the bond on July 1st, 2020.
Determine the company preliminary net income : Determine the company's preliminary net income. Earned $440 of service revenue; collected half in cash, with balance on credit.
MA611 Auditing Assignment : MA611 Auditing Assignment Help and Solution, Melbourne Institute of Technology - Assessment Writing Service - Understanding a Client to Plan a Financial Report
Describe three-line items of the multistep income statement : Describe the three-line items of the multistep income statement. Explain why it would be important for a company to break out its income in this manner.
Prepare journal entries to record amortization expense : Prepare journal entries to record Depreciation and amortization expense on the purchased assets for 2019. The purchase of the assets of Coffee
Calculate the market capitalization of each company : Calculate the market capitalization of each company. Calculate the market to book ratio for each company. Comment on differences you observe.
Benefits of a strong brand to business organizations : A well-defined brand strategy is significant for firms with expansion goals. Also, a strong brand could be a powerful tool for a competitive edge to large or sm

Reviews

Write a Review

 

Auditing Questions & Answers

  Report on internal controls at a service organisation

Which of the following professional services is considered an attestation engagement? (1) A management consulting engagement to provide IT advice to a client.

  Covenants are extracted from the indenture

The following covenants are extracted from the indenture of a bond issue.

  Understanding planning stage of the audit process

Objectives:  understanding planning stage of the audit process:  review of client business and perform audit risk analysis(applicable textbook chapters 4, 5 and 6)

  Identify the weaknesses in the stocktake procedures

ACC707 Auditing & Assurance Services. You attended the inventory count of your client Davis Hydraulics Ltd. You observed the following during the count. Identify the weaknesses in the stocktake procedures above and identify how they could be improved

  Role of an internal auditor

Role of an internal auditor who has been asked to identify a minimum of three high quality propositions that management can implement to establish a tone

  Pre-audit planning meeting goals

List each of these standards in the correct category. Identify those standards that you believe may be compromised by the listed situations. Describe specific actions that you believe should be taken to comply with the GAAS standards.

  Explain in detail the professional ethics of an auditor

Explain in detail the professional ethics of an auditor and its importance to the auditing perfession. Provide examples of five ethical dilemmas that could arise during the audit process and determinge how you would resolve them.

  Specific auditing and accounting problems

What potential risks may be present in this engagement? What specific auditing and accounting problems appear to exist? What additional information do you feel you need to know about the company? Do you believe the engagement should be accepted or re..

  Accounting-safety stock

Andrew and fulton inc. uses 780 cases of a chemical bonding agent each year. Monthly demand fluctuates between 50 and 80 tons. The lead time for each order is one month, and the economic order quantity is 130 tons.

  Identify key assertions and audit testing of bhp australian

Provide a brief explanation as to why the asset account is at risk - List the key assertion (as per ASA315) where the audit effort should be concentrated

  Sources of ethical values

1.What are the six core ethical values described by the Josephson Institute? What are some other sources of ethical values?

  How sec has influence over audit of smackey dog foods inc

Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the Smackey Dog Food client?

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!

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