ACCT 2161 AUDITING
INDIVIDUAL ASSIGNMENT 1
Marks: 20% of the total marks for this course.
Maximum Length: 1500 2000 words
Double spaces, size 12 font
(Penalties apply)
Due Date: Thursday 11th April 2013
Submission Instructions:
– The soft copy must be submitted by the due date via Turnitin
– No other approach to submitting is accepted.
– Signed Cover Sheets are mandatory.
– Do notsubmit assignment directly to tutor. Penalty applies.
– If you use the work of another author, you must include a reference list and use correct citations. (Penalties apply for transgressions)
– Please be aware that using the work of another author and not giving them credit for this work amounts to plagiarism and will incur heavy penalties, dependent on the nature of the transgressions can result in failing the assignment, having marks deducted or in severe cases there may be a possibility of failing the course.
– The assignment is broken into multiple parts. You must attempt all parts.
PART A 10 marks
1. You are to calculate the following ratios from the information that has been provided to you for Bella Confectionery Company Ltd and complete a ratio analysis (4 marks)
2. You are then also required to choose a company listed on the ASX in the similar industry and complete a competitor analysis. (4 marks)
3. Discuss the likelihood of failure of Bella Confectionery. (2 marks)
PART A CONTINUED
BELLA CONFECTIONERY
YOUR CHOSEN ASX COMP
20X0
20X9
Ratios
Current Ratio
Current assets
Current Liabilities
Debt to equity
Debt
Equity
Profit before tax/sales
Profit before tax
Sales
Gross margin
Gross profit
Sales
Inventory turnover
Cost of goods sold
Average inventory
PART B 10 MARKS
1. Discuss the potential Audit and Engagement Risk involved for the auditor of Bella Confectionery. (5 marks)
2. Discuss the Inherent Risk associated with Bella Confectionery Company . (5 marks)