Planning for the audit of the entity financial statements

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Reference no: EM131060903 , Length: word count:3000



There are two parts to the assignment. The first part requires students to set up an entity's books in MYOB and process transactions to relevant accounts. The second part requires students to prepare a document for the Audit Manager.

Part A - You have recently graduated from VU and are now working for a small accounting firm. The firm recently purchases MYOB software for internal use. Upon learning that you had learnt MYOB as part of your study, the firm's partner asks you to set up and process a number of transactions into relevant accounts.


1. Set up the firm on MYOB.

2. The financial year must be 1 April 2015 to 31 March 2016

3. Process the transactions listed in Part A_MYOB_S12016 into relevant accounts.

4. Print out and submit reports for the year ended 31 March 2016.

Part B-

1. You have recently been appointed external auditor of the entity. You are assisting your Audit Manager in planning for the audit of the entity's financial statements.

2. You are required to download the annual report published by the following entity:- Pacific Star Network Network Limited (

3. Using information from chapters 3 and 4 of the textbook, prepare a document for your Audit Manager. Your document must include key information set out below.

4. You have accepted and communicated your decision to the client in the engagement letter. The audit fee is $65,000.


Prepare a document for your Audit Manager. Your document must include the followings:

1. Executive summary

2. Introduction

3. Key information:
a) Gain an understanding the client
b) Identify five (5) significant accounts most at risk of being materially misstated
c) Set planning materiality
d) Assess what can go wrong (audit risk assessment) for each of the five (5) accounts selected in (b)

4. Conclusion

5. Appendix

6. References.

Attachment:- Assignment.rar

Reference no: EM131060903

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