Page 1 of 5 HA3032 AUDITING Assessment Details and Submission Guidelines Trimester T2 2020 Unit Code HA3032 Unit Title Auditing Assessment Type Group Assignment Assessment Title “Developing an Audit...

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only number 5 and 6 needs to be done, the company for the assignment is allium ltd


Page 1 of 5 HA3032 AUDITING Assessment Details and Submission Guidelines Trimester T2 2020 Unit Code HA3032 Unit Title Auditing Assessment Type Group Assignment Assessment Title “Developing an Audit Program for a selected publically listed Company” Purpose of the assessment (with ULO Mapping) Students are required to: 1.1- Identify and distinguish between tests of controls, substantive tests of transactions and substantive tests of balances. 1.2- Identify and understand when the auditor will undertake substantive audit procedures in response to specific assessed risks of material misstatement. 1.3- Understand how assertions relate to account balances 1.4- Understand how to select the most efficient and effective combination of audit procedures that allows them to achieve the audit objective 1.5– Active participation in an “audit team context” with professional group discussions The following Unit Learning Outcomes are applicable: 1. Demonstrate a thorough understanding of the reporting requirements of auditing standards relating to auditors’ reports. 2. Explain how the audit planning process directs the auditor to obtain adequate evidence to support audit findings and address the importance of materiality in an audit; 3. Explain the process of audit planning to determine risk assessments and an overall audit strategy; 4. Explain the auditors’ obligations with regards to understanding the client’s business and internal controls, and assessing business risks. 5. Achieve a high level of competence in applying prescribed auditing techniques in gathering evidence to satisfy audit assertions Weight 40% of the total assessment Total Marks 40 Marks Word limit Maximum 3,000 – 3,500 words Due Date Week 10 HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION Page 2 of 5 HA3032 AUDITING Guidelines on Submission  All work must be submitted on Blackboard by the due date along with a completed Holmes Institute Assignment Cover Page.  The assignment must be in MS Word format, single spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers.  Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style. HA3032 Auditing – Group Assignment Specifications Purpose: The aim of this group assignment is to provide you with an opportunity to design a “risk- based” audit program for a real world company and focus on the “Substantive tests of balances”, which involves substantiating the ending balance of an account(s), which is comprised of multiple transactions, as at a certain year-end date. Assignment Requirements and Structure 1. Students are required to form groups of 4 students group members by completing the “HA3032 Group Form details”. 2. Each group of students group have been provided by unit coordinator, a unique ASX listed company to use for progressive analysis in this group assignment. 3. Prepare a detailed audit program Report [3,000-3500 words] for the client/company in a group of 4 students. Students must use a Report Format with an Executive Summary and Table of Contents. 4. Use publicly available online resources for research purposes. Detail Assignment Tasks: Developing an Audit Program for a selected listed Company 1. Gain an understanding of the nature of the entity and its industry and then identify key business risks. After this is completed, assess where the risks of material mis- statements could be in the financial report. Consider the factors affecting both Inherent Risk and Control Risk. Finally, apply the Audit Risk Model [AR = f (IR, CR, DR)] to the selected company. Which risk rating would you apply (Low, Medium or High) to the company’s inherent risk assessment and control risk assessment? How does this affect your assessment of Detection Risk and Audit Risk? 2. Perform analytical procedures of the Statement of Financial Position and of Financial Performance over the last three years using appropriate ratios and/or metrics. Select four key ratios and provide a brief explanation in the report. This should be presented in a table format. 3. Discuss with your group members which account balances are considered “material”. Explain how you calculated materiality for planning purposes and provide appropriate justification for your decision-making. (Note - Use a table format to structure your answers to questions 5, 6, 7 & 8) 4. Select up to ten different material account balances, at least five assets and five liabilities. 5. For each material account balance selected, list the relevant financial report assertions and Page 3 of 5 HA3032 AUDITING explain why the selected assertions are applicable to each account. 6. Design a comprehensive set of audit work steps for each material account balance, which addresses the selected assertions and which will result in sufficient and appropriate audit evidence being collected for your selected client company. (Assume that a predominantly substantive approach is being adopted) 7. Include a sampling plan, which details how you will use sampling for each material account balance to be tested. How many items will be tested for each test? 8. Refer to some or all of the following websites for further information and research processes: http://www.auasb.gov.au/Home, http://www.asic.gov.au/, www.cpaaustralia.com.au, http://www.ifrs.org, Group Assignment Report - Marking Criteria Weighting % Key Business Risk Identification 4 10% Audit Risk Model – Assessment of Inherent Risk, Control Risk, Detection Risk 4 10% Analytical Review of the selected company, including ratio analysis in a table 4 10% Material Account Balance Identification (Minimum 5 x Assets and 5 x Liabilities) 10 25% Assertions identified – Correct Assertions are stated and explanations are noted 4 10% Audit Program – Audit work steps / procedures are clearly stated and listed. 10 25% Sampling Plan for each material account balance with samples sizes. 4 10% Weight 40 Marks 100% HA3032 Auditing Group Assignment - Marking Rubric HA3032 Auditing Group Assignmen t - Marking Rubric Part Excellent Good Satisfactory Unsatisfactory Key Business Risk Identificatio n (4 marks) Relevant Business Risks have been clearly stated and are appropriate after considered analysis. (80% - 99%) Business Risks are well stated and appropriate to the company selected. (65% - 80%) Business Risks are noted and stated, but they are only generic in nature. (50% - 65%) Business Risks have not been adequately addressed. There is insufficient or irrelevant information noted. (0 - 49%) http://www.auasb.gov.au/Home http://www.auasb.gov.au/Home http://www.asic.gov.au/ http://www.asic.gov.au/ http://www.asic.gov.au/ http://www.asic.gov.au/ http://www.cpaaustralia.com.au/ http://www.cpaaustralia.com.au/ http://www.cpaaustralia.com.au/ http://www.cpaaustralia.com.au/ http://www.ifrs.org/ http://www.ifrs.org/ Page 4 of 5 HA3032 AUDITING Audit Risk Model (4 marks) The Audit Risk Model has been very well understood and applied. All risk components are correctly stated and the Audit Risk Model has been applied correctly to the company selected. (80% - 99%) The Audit Risk Model has been correctly understood and all the risk components are noted. The analysis is sound, but detail is lacking. (65% - 80%) The Audit Risk Model has been satisfactorily applied, but either some minor mistakes are noted or there is a lack of detail in some areas. (50% - 65%) The Audit Risk Model has not been understood, considered or analysed in the report. There is minimal or no real grasp of the concept or it is missing from the report. (0 - 49%) Analytic al Review (4 marks) The Analytical review has been very well performed and includes three years of ratios. All four key ratios are appropriate and presented in a table with sound commentary. (80% - 99%) The Analytical review has been well performed and includes four key ratios. They are relevant and presented in a table with some good commentary. (65% - 80%) The Analytical review has been satisfactorily performed. Ratios are noted and there is some commentary , but there are some minor errors. (50% - 65%) The Analytical review is sub- standard. There are ratios missing. There is no commentary or it is poorly written. The requirements have not been understood. The analytical review is missing from the report. (0 - 49%) Material Account Balance Identificatio n (10 marks) Materiality has been correctly calculated using an appropriate base with explanation. Five Asset accounts and five Liability accounts have been selected and they are appropriate to the company. This section is presented in a table. (80% - 99%) Materiality has been correctly calculated with some explanation. Five Asset accounts and five Liability accounts have been selected. This section is presented in a table. (65% - 80%) Materiality has been stated with some explanation. Asset accounts and liability accounts have been provided, but some are not material. Some Formatting is noted. (50% - 65%) Materiality has not been calculated and it is missing. Account balances are either
Answered Same DaySep 19, 2021HA3032

Answer To: Page 1 of 5 HA3032 AUDITING Assessment Details and Submission Guidelines Trimester T2 2020 Unit Code...

Angel K answered on Sep 23 2021
169 Votes
Developing An Audit Program For A Selected Publically Listed Company
(Question number 5 and 6)
Introduction
An Audit programme is a series of
verification procedures applied on the financial statements and the accounting records of a company for the purpose of obtaining sufficient and appropriate audit evidence. This is carried on by an auditor to express an informed opinion on those statements. It is mandatory for an auditor to verify the assertions of management to make sure that the financial statements are free from errors. Assertions are the representations by management that are embodied in the financial statements. These assertions will facilitate the auditor to identify all the types of potential misstatement that may occur.
Q5. For each material account balance selected, list the relevant financial report assertions and explain why the selected assertions are applicable to each account.
For the purpose of evaluating the relevance of assertions we are choosing five accounts each from the assets and liabilities from the financial statement.
    Asset Account
    Relevant Assertions
    Reason For Selection
    Trade Receivables
    · Existence
· Completeness
· Valuation
    This account is important as it will help the user to identify the value credit sales of the entity.
    Cash And Cash Equivalent
    · Existence
· Completeness
· Presentation
· Verification
    It represents the liquid assent of the company. It...
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