Reference no: EM132306654 , Length: word count:2500

Across the course, these skills are developed progressively at three levels:

o Level 1 Foundation - Students learn the skills, theories and techniques of the subject and apply them in stand-alone contexts

o Level 2 Intermediate - Students further develop skills, theories and techniques of the subject and apply them in more complex contexts, beginning to integrate the application with other subjects.

o Level 3 Advanced - Students have a demonstrated ability to plan, research and apply the skills, theories and techniques of the subject in complex situations, integrating the subject content with a range of other subject disciplines within the context of the course.

Learning Outcomes

Listed below, are key knowledge and skills students are expected to attain by successfully completing this subject:

a) Apply the various auditing standards and procedures taking into consideration the professional, legal and ethical standards relevant to audits by the application of these to the conduct of an audit

b) Apply the concepts of risk analysis and internal controls, audit testing procedures and audit sampling techniques as they apply to audit practice

c) Evaluate information of audit practice and audit reports with reference to current auditing standards.

Assessment - Auditing case study -

Purpose: To allow students to demonstrate their ability to research, critically analyse trends and issues in auditing and assurance services, identifying problems as would arise in a modern organisation. This assessment relates to learning outcomes a, b and c.

Topic: Research, critically analyse and evaluate key audit matters in independent auditor's report Auditor's report

The new auditing standard ASA 701 communicating key audit matters in the independent auditor's report was developed in the wake of the global financial crisis (note: following the demise of Lehman Brothers shortly after it received an unqualified audit report, i.e. no prior warning of its demise). This development is in response to calls from shareholders to know more about the companies they invest in (students would need to explain what happened in Lehman Brothers which would evidently be a key audit matter if such an auditing standard had existed then). Further, investors have also requested earlier warnings of potential issues that may exist with respect to an entity's ability to continue as a going concern which resulted in the revision of ASA 570 (ISA 570) going concern (to include a going concern uncertainty paragraph. Note: during the global financial crisis there was an increase in emphasis of matter paragraph mainly relating to going concern uncertainty now replaced by a "material uncertainty related to going concern" paragraph).

Required: Students are required to research into the rationale for the new auditing standard ASA 701 and explain clearly what it is. Each student is to select an industry, eg. banking, mining, etc and analyse key audit matters in the independent auditor's reports of all companies in that industry in ASX top 100 listed companies so as to evaluate the efficiency of reporting key audit matters in the independent auditor's report (i.e. does key audit matters disclosure provide more information to users).

The report is to be fully referenced (including the annual reports of companies selected for your assignment) and up to 2,500 words (assignment in excess of 2,500 words will be penalised 10% of the marks). There should be a minimum of 8 academic references.

The report should include title page, executive summary, table of contents, appropriate headings and sub headings, recommendations, reference list (Harvard- Anglia style), attachments if relevant, single spaced, font Times New Roman 12pt.

Attachment:- AUDITING AND ASSURANCE.rar