How would you assess the business risk of hih insurance

Assignment Help Auditing

Reference no: EM131175180 , Length: word count:1500

AUDITING AND ASSURANCE SERVICES ASSIGNMENT-

Question 1 -Business Risk and Inherent Risk Assessments

"It is difficult for an insurance company to go broke in the space of a year, let alone a few months" Sydney Morning Herald, May 19-20, 2001.

Required:

a) How would you assess the business risk of HIH Insurance Limited?

b) List several inherent risk factors effecting HIH at the financial report level and whether they would have contributed to an increase or decrease in the inherent risk assessment.

Question 2- Legal Liability

Sydney solicitor Bruce Dennis will be coordinating a class action for some 600 HIH shareholders against the auditors - Andersens (as the firm is now known). In addition, HIH's liquidator, Tony McGrath of KPMG Peat Marwick is also likely to seek to recover funds for HIH creditors.

Required:

a) Discuss the facts and findings of relevant court cases that Andersens should refer to in determining the likelihood of the partnership being held liable to:

1) clients

2) creditors.

b) What conditions need to exist for a negligence action to be upheld?

Question 3 - Ethics

The HIH board of directors includes three former partners of the audit firm Arthur Andersen. In the past decade, Andersens has earned more than $8 million from auditing HIH books and $7 million for other services.

Required:

a) Why would HIH have wanted to hire prior members of its external audit team?

b) What are the advantages of having the same firm provide both the auditing and consulting services?

c) Indicate whether these circumstances represent a violation of ethical standards and give reasons for your answer.

d) Outline the primary recommendations for audit reform proposed by the Ramsay Report and CLERP 9. What impacts do you feel these changes will have on the practice of auditing?

Attachment:- Assignment.rar

Reference no: EM131175180

Questions Cloud

Explain how these laws apply to tim coffee shoppe : Describe the types of businesses to which this technology would ideally apply. Examine whether the technology you discovered would be a good investment for Tim's Coffee Shoppe. Then discuss reasons as to why or why not.

Construct a spreadsheet to calculate the payback period : QUESTIONS 1.Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine.

Calculate the mechanical and brake thermal efficiencies : For normal running at this speed the specific fuel consumption is 0.364 kg/kW h. The of the fuel is 44 2(0 kJ" kg. Calculate the mechanical and brake thermal efficiencies of the engine.

Define ongoing system maintenance roles and responsibilities : Define ongoing system maintenance roles and responsibilities. Describe procedures for evaluating and prioritizing system enhancements proposed by stakeholders.

How would you assess the business risk of hih insurance : HA3032 AUDITING AND ASSURANCE SERVICES ASSIGNMENT. How would you assess the business risk of HIH Insurance Limited? List several inherent risk factors effecting HIH at the financial report level and whether they would have contributed to an increase..

Determine the engine displacement required : The of the fuel is 44 200 Wks, and the free air conditions are 1.013 bar and 15° C.

Define and explain what variable pricing : Define and explain what Variable pricing is. Also explain why some companies refuse to use variable pricing

Individual product level : There is almost always a difference between planned and actual sales, so the sales mix variance is quite useful as a tool for learning about where sales varied from expectations.Explain the steps on how to calculate it at the individual product le..

Calculate the heat rejected per minute to the jacket : For the compressor of Problem 115 calculate the heat rejected per minute to the jacket cooling water of each goy, and the heal rejected per minute to the inters: octet Assume that 50% of the friction power in each stage n transferred to the jacket..

User Account

All Pages