Advanced Auditing and Assurance (ACC5AAS) Assignment Semester 2, 2020 Department of Accounting and Data Analytics La Trobe University This is an individual assignment due for submission in on Monday...

Advanced Auditing and Assurance (ACC5AAS) Assignment Semester 2, 2020 Department of Accounting and Data Analytics La Trobe University This is an individual assignment due for submission in on Monday 28th September at 5.00 pm. Weightage: 20% of total mark Word Limit: 1,000 words (excludes covering page, table of contents, executive summary and reference list) It is acceptable to be +/- 5% of the total word limit. Submission details: • All submissions must be typed in a minimum 12 font, with double spacing using Word and submitted via the Turnitin link available on the LMS. • The Turnitin percentage should be as low as possible. • Report must be submitted in Word file format- failure to follow this instruction (and other presentation requirements outlined below) will result in a deduction of marks. Late Submission Penalty: “The standard penalty for late submission of assessment task is 5% of the marks for that task for each delay in submission of a day or partial day up to a maximum of five (5) working days after the due date. Assessment tasks will not be accepted after the earlier of the following occurrences: • The fifth (5th) working day after the due date; or • Feedback on the assessment task has been returned to any student by the Teaching Team member” (La Trobe University) Presentation Requirements: The assignment must be presented in the following report format: 1. A covering page (containing the title of the assignment, name and student number and word count) 2. An executive summary (concise summary and overview) 3. A table of contents (presented on a separate page) 4. Body of report with answers to each of the questions, including headings for each question and part of question (do not include a copy of the question) 5. Conclusion (logical and coherent summation of the assessment task, including key findings) 6. A reference list (Harvard or APA referencing style). Appropriate references and citations throughout the report are expected. 7. Page numbering Audit risk assessment and planning You are a part of the team responsible for planning the Land & Homes Group (ASX code – LHM), a property development company, audit engagement for 2020. You are required to gather relevant background information and prepare a report for a meeting with your audit seniors. Assume that this is the first time that the audit will be conducted by your audit firm for this client. Your report must address the following issues: Required: (1) What are the areas in which LHM conducts its operations? (2 marks) (2) Are there any events or conditions that may cast significant doubt on the LHM’s ability to continue as a going concern? Explain. Your answer should be supported by at least three factors. (6 marks) (3) What do you consider to be the three major business risks associated with the current year’s audit? Explain. (6 marks) (4) Based on your risk analysis and understanding of LHM and its environment, list and explain three accounts that could be at risk of material misstatements. You also need to identify the key assertion at risk for each identified account. (12 marks) (5) Identify an appropriate base and set planning materiality for LHM. Explain why you have chosen this base and the percentage you have used. (4 marks) The answers for above questions should be reflective of your in-depth understanding of how the LHM operates. You should conduct extensive research and perform an analysis of the annual report of LHM for the year 2019 and any other relevant information that you have obtained. (Hint: company’s financial results, financial press and other business media). LHM’s 2019 Annual Report is available via link below: http://www.landnhomesgroup.com/irm/PDF/0674adbd-49c1-4ba4-9df6- 30bfc512abec/2019AnnualReporttoShareholders Assignment Marks Allocation The marks for the assignment will be allocated in accordance with the following schedule: Assignment (marks allocation) Marks Cover page 1 Executive summary 2 Body of the report (answers to each of the questions) 30 Conclusion 2 Reference list and in-text citation 2 Page numbering and report presentation 2 Within word limit 1 Total marks 40* *Final mark (out of 40) will be scaled to 20% to reflect weighting of the assessment task.