2016-12-29 来源: 51Due教员组 类别: 更多范文
The information environment facing accountants has changed radically. In the past accountants were largely concerned with collecting and processing data; but no longer. Today, vast amounts of information are collected and processed automatically and the challenge for accountants is to select and communicate useful and relevant data. The assignment provides students with this challenge.
Your role is that of external auditor. You have been assigned by the audit partner to investigate the inherent risks that impact on the Financial Report audit, the information you gather will be the basis for the Audit Plan.
Select one company listed on the ASX. Choose a company that is easy to understand like a retailer or a manufacturer. Do not do J&B Hi-Fi. Avoid financial institutions unless you have a particular interest in this type of company.
In preparation for the 2009 Audit (year end 30/06/09)
Part 1 40% Collect and analyse information on the quantitative aspects of inherent risk. This process is called Analytic Review. Information should be acquired from the FinAnalysis data base in the library and from the company’s annual report (including notes). No calculation of ratios is required or permitted. Do not submit any data in this section unless it is discussed in the report. Be specific about what potential misstatements might exist in the financial reports, and relate these to specific accounts and assertions where possible.
Part 2 40%. Collect and analyse period relevant information on non-quantitative aspects of inherent risk for your client. See Appendix 1 of ASA315 for guidance.
Information should be acquired from, for example, the business press like the
Australian Financial Review or the business section of the Age (search for your company name). Information is also available in the company’s Annual Report, though this is a biased source. Information must be relevant to the period in question. Make sure you identify the particular assertions, accounts or other aspects of the financial reports that are likely to be misstated, and so of interest to the auditor. As part of this section, make sure that you discuss the influence of the current tight credit markets and the global recession on the inherent risk of the audit of your company. Again, be specific about accounts and assertions as far as possible.
Part 3 20%. Draw on the research and analysis in parts 1 and 2 to write a memo* to your Audit Partner about specific areas of risk that are important to the Audit Plan. Do not discuss specific audit procedures in this memo, only areas of risk that require special attention in the audit. Your aim in this section is not to provide a simple summary of parts 1 and 2, but to focus the audit plan and resources on key risks.
*A memo is an informal internal report; don’t worry about the structure of the memo, just make sure it’s sensible and clear. Normally, there are four parts to the memo’s heading: Date: To: From: and Re:
Caution: This assignment is about inherent risk relating to the financial report: that is, matters that have an impact on audit planning, audit procedures and the auditor’s opinion, it is not about business risk in general. In the past students have done great business risk analyses, but not mentioned audit risk or the audit – and failed. You need to identify how the risks are likely to lead to specific errors in the financial reports, Eg if inventory is particularly subject to theft, like in a jewellery store, then this risk is likely to result in overstatement of inventory because some reported inventory items will not exist.
As a guideline, if you have not mentioned the audit in any one paragraph of your report, that paragraph is probably irrelevant and will receive no marks.
Additionally, examine your answer to make sure it is relevant to your company. No marks will be given for general observations that might be relevant to the audit of any company. This assignment is about a specific job that you might be assigned when you are hired by an audit firm. General information is of no use. Theoretical information is of no use and will attract no marks. You can assume your audit partner knows more about auditing than you do.
The assignment may be completed individually or in groups of one, two or three. Maximum word lengths vary accordingly: 1 person = 1500 words; 2 people = 2500 words, 3 people = 3500 words. The word length of the assignment should reflect the marks allocated above. (Of course, one clearly argued paragraph is preferable to five pages of confused nonsense.) Students are responsible for organising and managing their own groups and there are no restrictions on group membership. Off campus students are encouraged to organise on-line groups through the discussion forum.
Caution: students might be tempted to split the three parts of the assignment amongst a group of three. However, the report as a whole must be well integrated and coherent. Poorly integrated assignments often fail. Each group member is responsible for the whole assignment.
Organise your submission with a title page and the three parts as described above. There is no need for a table of contents, an executive summary or an introductory section. See the unit planner in the unit guide for submission requirements. Mailed papers will be considered to be on time if posted on the due date. Submission date will be determined by the postmark.
Include a plagiarism declaration signed by every group member. Late submissions will be penalised 1 mark per day. No on line submissions are permitted.
Student assignments are expected to exhibit coherence and good quality organisation, punctuation, spelling, grammar and referencing. Up to 5 marks will be deducted for substandard performance in each of these areas. Where the paper is judged unreadable, students will be asked to resubmit and will not receive more than 50% for the resubmission.
Any queries about the marking of assignments should be brought to the attention of the teaching staff immediately after assignments are returned. No queries relating to the assignment will be considered after the final exam.
Due date for submission of assignment is on Monday, 10 May 2010. On campus students, you have until 11.59pm to drop in your assignment into the Deakin Burwood Campus assignment dropbox at Building lb. Off campus students, you could mail your assignments on 10 May, as determined by the postmark.