Assignment has 5 questions and it's a small theoratical assignmentACCT6006 Assessment 2 Brief –...

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Assignment has 5 questions and it's a small theoratical assignment

ACCT6006 Assessment 2 Brief – Group Case Study Page 1 of 6 ASSESSMENT BRIEF Subject Code and Name ACCT6006 Auditing Theory and Practice Assessment Assesment 2 - Case Study Individual/Group Group (max of three students) Length 2,200 words (+/- 10%) Learning Outcomes a) Describe the nature of auditing and critically evaluate the benefits and limitations of financial statement audits. b) Explain the current legal and ethical responsibilities of auditors including the application of the Accounting Professional and Ethical Standards. c) Explain the fundamentals of audit planning, audit risk and materiality. d) Demonstrate application of methodologies involved in the provision of audit services. e) Describe the process of compiling an audit report and completing an audit engagement. Submission By 11:55pm AEST/AEDT Sunday of Week 10 Weighting 25% Total Marks 60 Marks Task Summary Students are required to work in the group with maximum of three members. The assessment is designed to assess the subject learning outcomes above including students’ ability to research audit related issues and apply their knowledge to real cases. Students are expected to develop a professional report addressing tasks within following areas: i. Inheret risk identification ii. Audit procedures in response to inherent risks identified iii. Analytical review of the financial statemets with the purpose of identifying areas of concern or comfort iv. Susbtantive audit procedures addressing the identified risks v. Audit report, its basis and legal issues The report should include an Excective summary, Introduction, Body (covering all tasks) and Conclusion. ACCT6006 Assessment 2 Brief – Group Case Study Page 2 of 6 Context: The case study requires students to work in a group and develop a professional report. A key aspect in your group’s choice of format/layout should be to ensure you impart your key messages effectively (i.e., complete the requirements) and efficiently (i.e., it should be succinct and take into account the word limit). The report should be coherent and consistency is expected throughout (e.g., formatting, language style, linkages between the parts). Note, groups who split up the requirements and work independently are likely to have more difficulty accomplishing this objective compared to groups who work on each of the parts collaboratively (i.e., as an ‘audit team’). Referencing It is essential that you use appropriate APA style for citing and referencing research. Please see more information on referencing : http://library.laureate.net.au/research_skills/referencing Submission Instructions: Complete all tasks and submit your answers electronically using the link on BlackBoard under assessments overview and submission. Include the names and student ID numbers of the team members on the assignment cover sheet. Only one version of the assessment is to be submitted on behalf of the group. Please ensure that your submission is in compliance with all of Torrens Policies. http://library.laureate.net.au/research_skills/referencing ACCT6006 Assessment 2 Brief – Group Case Study Page 3 of 6 Instructions: Review the Financial Year 2020 audited annual reports including financial statements presented to the shareholders for the following organisations:  Qantas Ltd  Woolworth Ltd Assume that your audit team is responsible for planning the audits for both companies for the most recent financial year. Discuss your strategies addressing each of the tasks below: 1. Identify at least three inherent risks that you would have to consider for each company in the audit planning phase and justify your answer. Cite the relevant ASAs/ISAs to support your answer. (10 Marks) 2. Which audit procedures and/or tasks would you have planned to carry out in response to the inherent risks identified above? Cite the relevant ASAs/ISAs to support your answer. (12 Marks) 3. Carry out an analytical review on the financial statements of these companies in the planning phase and identify areas of concern (high risk, problem areas) or comfort. Identify at least three areas for each company and justify your answer. (10 Marks) 4. Which audit procedures and/or tasks would you have planned to carry out in response to the high risks or problem areas identified above? Alternatively, in relation to which area would you have minimised your evidence gathering procedure? (10 Marks) 5. Discuss ethical and legal responiblities/liabilities of the auditors in case they would have given an inappropriate audit opinion. Discuss safeguards available to the auditors. (6 Marks) Effective communication, Presentation quality and peer review (6 Marks + 3 Marks + 3 Marks) The report should be expertly presented, persuasive, logical communication, coherent and consistency is expected throughout (e.g., formatting, language style, and linkages between the parts). Each group member is required to assess other members on the basis of collaboration and contribution towards the assessment tasks. Please include the peer review commentary at the end of your assessment after the conclusion section. Peer review marks have to be allocated in line with the learning rubric placed at the end of the assessment brief. ACCT6006_Assessment Brief_Group_Assignment_Due_Week_09 Page 4 of 6 Learning Rubric: Assessment ACCT6006 Case Study Assessment Criteria Fail (Unacceptable) 0-49% Pass (Functional) 50-64% Credit (Proficient) 65-74% Distinction (Advanced) 75 -84% High Distinction (Exceptional) 85-100% Knowledge and understanding (technical and theoretical knowledge) 20 % Limited understanding of required concepts and knowledge. Key components of the assignment are not addressed. 0 – 5.5 Marks Knowledge or understanding of the field or discipline. Resembles a recall or summary of key ideas. Often confuses assertion of personal opinion with information substantiated by evidence from the research/course materials. 6 – 7.5 Marks Thorough knowledge or understanding of the field or discipline/s. Supports personal opinion and information substantiated by evidence from the research/course materials. Demonstrates a capacity to explain and apply relevant concepts. 8 – 8.5 Marks Highly developed understanding of the field or discipline/s. Discriminates between assertion of personal opinion and information substantiated by robust evidence from the research/course materials and extended reading. Well demonstrated capacity to explain and apply relevant concepts. 9 – 9.5 Marks A sophisticated understanding of the field or discipline/s. Systematically and critically discriminates between assertion of personal opinion and information substantiated by robust evidence from the research/course materials and extended reading. Mastery of concepts and application to new situations/further learning. 10 -12 Marks Evaluation of information selected to support the case study 60% Limited understanding of key concepts required to support the case study. Confuses logic and emotion. Information taken from reliable sources but without a coherent analysis or synthesis.

acct6006-assessment-2-brief-osnanc1j.pdf

Angel K · Accepted Answer

AUDITING THEORY & 
PRACTICE
ACCT6006
GROUP CASE STUDY
INDEX
1. INTRODUCTION
2. INHERENT RISK IN AUDIT
3. AUDIT PROCEDURES TO REDUCE THE INCIDENCE OF INHERENT RISK
4. ANALYTICAL REVIEW OF QANTAS AND WOOLWORTH
5. AUDIT PROCEDURES TO THE ASSESSED RISK OF MISSTATEMENTS
6. ETHICAL AND LEGAL RESPOSIBILITIES OF AN AUDITOR IN EXPRESSION OF AUDIT OPINION 
7. SAFEGUARDS AVAILABLE FOR AN AUDITOR INCASE OF EXPRESSION OF INAPPROPRIATE AUDIT OPINION
8. CONCLUSION
9. REFERENCES
1. INTRODUCTION
Auditing can be defined as an independent examination of the financial statements of a company. Auditing is a non-excludable part of a business entity as it helps in assuring the reliability of the accounts of a company. In the given case, the companies that we need to evaluate are Qantas ltd and Woolworth ltd. Since both of them are public companies, auditing of their financial statements statutory function. This is mainly because it involves the deposit of public and the authorities also require true and fair picture of the financials for proper administration. Hence through this case study we will analyze some areas of auditing with reference of Qantas ltd Woolworth ltd for better understanding of the process and also the subject.
2. INHERENT RISK IN AUDIT
A risk that the financial statement of an entity is misstated for a reason other than the limitations in internal control is known as inherent risk. In a more simple term, inherent risk can be described as the chance of occurrence of misstatements in the financial statements even after preparation under stringent internal control. Inherent risks are common in a financial statement. However, it is hectic to identify the misstatements aroused from inherent risks as it cannot be detected by analyzing the expectable flaws in the internal controls. Even if this risk is quoted in the Australian Auditing Standard 200, the identification and further procedures to rectify the same is completely based on the skill and expertise of the concerned Auditor. 
Qantas Ltd is the largest airline service provider of Australia. It is also one of the oldest Airline companies around the world that are still in operation. Since it is a public ltd company, 65 percent shares of this entity is owned by the public. Similarly Woolworth is also one of the major retail service providers located in Australia and New Zealand and a large proportion of this group of companies are residing in the hands of the public. Hence conducting the audit of the financials of this entity is important to satisfy the needs of both the public and also other government and non-government authorities. 
The three major inherent risks that can be identified by evaluating the nature and the business environment of these entities are complexity in the recognition of revenue, difficulty of auditing the transaction and the misstatements in prior audits. Since these entities are operation in a large scale, detection and correction of these types of misstatements would be difficult. However, with a proper planning the auditors might be able to detect these misstatements and to form an informed opinion regarding the reliability of the financial records of these entities. In addition to the risks listed above, the auditor of these entities must also expect industry related risk factors that are exclusive for a given entity. This is an important consideration for audit planning as it provides better understanding of the environment. 
3. AUDIT PROCEDURES TO REDUCE THE INCIDENCE OF INHERENT RISK
Audit procedures are process, techniques or methods that are implemented by the auditors of a financial statement to obtain the required audit evidence and also to detect the expected misstatements that might have aroused due to the existence of audit risk. The international Auditing standards and also other standard setting body have clearly specified the number of audit procedures that can be used for optimal auditing function. Before considering any of the audit procedure, the auditor must make sure to implement proper plan and strategy for the performance of audit. Some of the audit procedures that can be used for detecting and correcting the inherent risks mentioned earlier in the case of Qantas ltd and Woolworth ltd as per the Australian Auditing Standard 200 read with 580 are as follows. 
Inquiry
It is the process of collecting information from the concerned people in the entity. The process of inquiry will help the auditors of Qantas ltd and Woolworth ltd in the identification of the existence of inherent risks in many ways. For example for the evaluation of the magnitude of inherent risk, the auditors can inquire the board of directors or the acting management regarding the existence of complex transactions in the entity. It can also be used for the better understanding of the industry in which these companies are functioning.

ACCT6006 Assessment 2 Brief – Group Case Study Page 1 of 6 ASSESSMENT BRIEF Subject Code and Name ACCT6006 Auditing Theory and Practice Assessment Assesment 2 - Case Study Individual/Group Group (max...

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