ALUE: 25% of OVERALL ASSESSMENT

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ACCM 4400

Auditing and Assurance

Assignment

Trimester 3, 2014

VALUE: 25% of OVERALL ASSESSMENT

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DUE DATES:

Written work – Friday, 6 February 2015(The portal will close at 11.59pm AEST Studentsin Adelaide and Brisbane please note to adjust for the time difference accordingly).

Presentation during the tutorial in the week beginning 2 February 2015

Submission:The written component of the assignment will need to be submittedelectronically through the student portal use the link under Assessments Overview and Submission to submit the information. Presentations will be made in class and marked accordingly.

REQUIRED:

This assignment comprises three parts:

1. Written answers to a research case study involving two companies (See Part 1 below);

2. Written answers to a research question on a current area of concern in auditing (See Part 2 below);

3. A group presentation.

You are required to complete the assignment working in teams of 3 – 4 members. You need to obtain your lecturers approval as to the size and members of your group. Your group presentation will be limited to 10 minutes (per group) and each member of the team must present a part of it demonstrating an understanding of the technical aspects being tested and individual oral presentation skills. A separate mark will be given to each member of the team for presentation skills. Minutes of team meetings must also be maintained and submitted with the assignment.

The Assignment is designed to test the following skills:

1. Your knowledge and your ability to research the issues and then apply the information appropriately using judgement.

2. Your teamwork and communication skills.

Please make sure you follow the guidelines noted in your subject outline especially those relating to presentation of written work, late policy and academic integrity. You should also familiarise yourself with the assessment marking rubric (attached) to guide you in how you can score marks.

.0/msohtmlclip1/01/clip_image008.jpg”>Group Assignment: Research and Presentation

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PART 1: (50 marks)

Review the annual reports including financial statements presented to the shareholders in respect of the two companies noted below and answer the questions. Please note that if the web-link fails to open you may need to right click on it and use open hyperlink to access it.

(A) Wesfarmers Ltd: Financial year ended 30 June 2014http://www.wesfarmers.com.au/

(B)Virgin Australia Limited: Financial Year ended 30June 2014

http://www.virginaustralia.com/au/en/about-us/company-overview/investor-information/annual-reports/

Questions to be answered by the group or team:

Assume that your team is responsible for planning the audit for both Wesfarmers (year ended 30 June 2014) and Virgin(year ended 30 June 2014) discuss your strategies in relation the questions noted below

(A).Identify at least three (3)inherent risks that you would have considered for each companyin the audit planning phase and justify your answer

(B).What audit procedures and/or tasks would you have plan to carry out in response to theinherent risks identified by you in (A) above?

(C).Carry out an analytical review on the financial statements of these companies in theplanning phase and identify areas of concern (high risk or problem areas) or comfort. Justify your answer – identify at least three (3) points for each company.

(D).What audit procedures and/or tasks would you have planned to carry out in response to thehigh risks or problem areas identified by you in (C) above? Alternatively, in relation to which area would you have minimised your evidence gathering procedure?

(E).An Independent Auditors Report to the Members has been issued for each company:

(a) Identify the type of audit opinion issued by each auditor, and justify your answer.

(b) Do you agree with the type of opinion issued by the auditor? Why or why not? Please indicate an alternative audit opinion if you do not agree with the one issued.

(c) Are there any other matters or events that have taken place after the issue of the audit report that strengthens or weakens the auditors opinion?

(F).In relation to corporate governance research and justify your answer to the following questions-

(a) Do the above companies have any process relating to corporate governance?

(b) Under which section of the annual report would you expect to find information on it?

(d) In your opinion, are audit committees of benefit to the auditor, the company, the auditing profession and/or society as a whole?

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Kaplan Business School is part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86 098 181 947 is a registered higher education provider CRICOS Provider Codes SA/QLD 02426B, NSW 02913J and VIC 02887F ACCM 4400/3TRIMESTER2014/Assignment /MIR

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.0/msohtmlclip1/01/clip_image011.jpg”>Group Assignment: Research and Presentation

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PART 2: (30 Marks)

The Australian Securities and Investments Commission (ASIC) released Information Sheet 196 in March 2014 titled Audit Quality: the Role of Directors and Audit Committee

In your own words (as a group/team) briefly explain/answer the questions below and justify your answer in each instance (Word Limit – not more than 750 words)

a)What you (as a group/team) understand by audit quality?

b) Do you think that audit quality is an important issue? Why or why not?

c) Do you think that the directors and/or the audit committee assist audit quality? If so, how?

d) The CAANZ (formerly ICAA) in a document titled The Benefit of Audit: A Guide to Audit Quality identified five drivers of audit quality. What are these five drivers? Do they have any impact on audit quality?

e) Do you believe that literature of the above nature will be of benefit to the auditor, the auditing profession and/or society as a whole? Why or why not?

You are required to:

1. Complete the above questions submit your answer electronically using the link on the student portal under assessments overview and submission. A copy of the minutes of team meetings (noted below) should also be attached. Please make sure that all members of the team sign the minutes of the meetings.

2. Group Presentation prepare and present a group presentation of 10 minutes on all or some of the material you have researched in parts 1 and/or 2 above. All members of the group should be part of the presentation. Questions will be asked of the group during and/or after the presentation. You are also required to assess the other members in your team (peer review) in terms of their contribution and award each one a mark out of 5. The lecturer will also award each one of you a mark out of 5 for your efforts in team work.

Summary of Marks:

Part 1 Written (Group)

50 marks

Part 2 Written (Group)

30 marks

Presentation (individual)

10 marks

Teamwork (lecturer and peer)

10 marks

100 Marks

Team Meetings

The team should have a minimum of three meetings (the team may have as many meetings as they need to) and should maintain minutes of those meetings detailing –

1)Where the meeting was held

2) People present; absent; apologies

3)What was discussed and agreed on;

3) The follow up action relating to each member of the team;

4) Any other relevant matter, things you agreed or disagreed on etc.

The team meeting minutes should be included with the hard copy of your assignment as an attachment.

~~~~~~~~~~~~~~~~~~ End of Assignment ~~~~~~~~~~~~~~~~~~~

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Creation of financial plan

Su On 1/1/14, Parent Co. sold machinery to its subsidiary, Son Corp. FOR $160,000.

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