Please answer all the questions with detailed answers
FNS60217 | FNSACC602 Audit and report on financial systems and records Assessment Task | V 1.0 | April 2018 Page 1 of 10 Assessment Task 1: Assessment Task Case Study: Woolworths Schedule Week 1 Outcomes Assessed Performance Criteria: 1.1, 1.2, 2.1, 2.2, 5.5 Addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: Since re-listing in 1993 Woolworths has been one of Australia's most successful and largest retailers driven by the adoption of its 'Fresh Food People' and 'Everyday Low Prices' (EDLP) strategies. Woolworths (WOW) is a retailer with primary activities in Supermarkets. WOW’s other operations include: BIGW discount department stores; Consumer Electronics through Dick Smith, Powerhouse and Tandy; Petrol through the Woolworths/Caltex alliance; and Hotels. Supermarkets are also operated in New Zealand (InvestSmart, 2012). Woolworths reported NPAT up 5.1% to $2.12bn for the year ended 30 June 2011. In this task, you will be provided with a copy of Woolworth’s 2011 annual report. Based on the annual report and your research of the company (company website, media reports and analyses), answer the following questions; Write the answers below; Student Name: Student ID: Assessor: Date: Q1. What is the purpose of an annual report? Explain its significance to the business. __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ FNS60217 | FNSACC602 Audit and report on financial systems and records Assessment Task | V 1.0 | April 2018 Page 2 of 10 __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Q2. What company’s objectives and obligations of reporting would you identify from the report? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Q3. Who is the auditor? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Q4. What are the main items covered in the auditor’s report __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ FNS60217 | FNSACC602 Audit and report on financial systems and records Assessment Task | V 1.0 | April 2018 Page 3 of 10 __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Q5. What are the main items covered in the directors’ statement? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Q6. What are the main items addressed in the corporate governance statement __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Q7. What risk management policies are discussed? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ FNS60217 | FNSACC602 Audit and report on financial systems and records Assessment Task | V 1.0 | April 2018 Page 4 of 10 __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Q8. What does the company say about corporate ethical standards? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Q9. Provide examples from the accounts of the accounting principles of materiality, comparability, conservatism and consistency. __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Assessment Criteria FNS60217 | FNSACC602 Audit and report on financial systems and records Assessment Task | V 1.0 | April 2018 Page 5 of 10 The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work. Answered all the questions based on the sample annual report Completed the task in presence of an assessor during a designated assessment session Answers reflect an understanding of company’s financial environment and critical factors Outlined the purpose of preparing an annual report from company’s point of view with significance of shareholders and investors Outlined relevant statutory requirements relevant to financial reporting and auditing Statutory requirements are consistent with reporting legislations and AASB standards Explained reporting and ethical responsibility of the company within the regulatory context References to relevant laws, regulations and standards are made as appropriate Described the audit context, and the contents in the auditor’s report Summary of director’s statement highlight key financial achievements and success factors Reviewed and summarised company’s governance and policy framework Accounting principles of materiality, comparability, conservatism and consistency are explained with examples from the report Answers are concise, clear and within the scope and context of the case organisation Answers reflect own style and understanding of the topics Submission Guidelines Submit: Completed answer sheet with a signed assignment cover sheet This assessment task must be completed in a designated session in presence of a trainer/assessor. Assessment Task 2: Assessment Task Practical Task: Plan for a Balance Sheet Audit Schedule Week 2 FNS60217 | FNSACC602 Audit and report on financial systems and records Assessment Task | V 1.0 | April 2018 Page 6 of 10 Outcomes Assessed Performance Criteria: 1.1, 1.2, 2.1, 3.1, 3.3, 5.1, 5.3., 5.5, 6.1, 6.2 Addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: This exercise is aimed at developing and understanding of the audit and reporting process and skills in planning and conducting audits of balance sheet items including assets, liabilities, income, and expenses based on general auditing principles. This task provides an opportunity to; Develop/enhance an understanding of the balance sheet accounts Analyse the relationships between balance sheet and income statement accounts Develop and apply audit techniques for certain balance sheet accounts Use analytical procedures and approaches in auditing You will be provided with a sample balance sheet; alternatively you may use the balance sheet used in the previous tasks. As an actual audit of balance sheet will require an examination of actual financial data such as bank statements, receipts, transactions, and actual reconciliations, in this task, you will assume a “preparatory” role of an auditor and develop an audit strategy (“how to” approach) for auditing balance sheet of a client organisation. You may use the organisational context used in the previous task (Assessment Task1). Organisational context is the key as it provides a basis for management decisions and financial/investment activities. Using and organisational context, prepare an audit strategy; how will be audit following balance sheet items; Cash and Bank Balance Account Receivable Fixed Assets Liabilities Investment (or Loans) In addition; Describe the purpose and significance of the audit Include an overview of legal (legislative) and compliance (AASB) information and references to specific laws/regulations and standards pertaining to financial reporting and auditing Describe company’s responsibility for reporting, governance and record-keeping as a public company Outline governance and internal control issues that will be relevant to the audit Audit procedure and auditor’s approach to audit (specific tasks that the auditors will perform) Analytical procedures (e.g. variation, trend, ratio) to be used and their significance All in all, you above strategy should establish the foundation for a comprehensive audit plan in the subsequent assessment tasks. FNS60217 | FNSACC602 Audit and report on financial systems and records Assessment Task | V 1.0 | April 2018 Page 7 of 10 There is a range of literature available on audit of balance sheet. However, you will need to devise your own audit strategy while maintaining the general auditing principles. All external sources must be cited using an appropriate referencing system. Assessment Criteria The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work; Developed or used an appropriate business/organisational context and summarised organisation’s business activities and structure including different business units/subsidiaries The plan for audit is prepared as a formal business document with appropriate style, and structure (Spelling, grammar, introduction and conclusion; the structure, organisation and presentation of ideas; and the appropriate use of tables, figures and charts) Financial data, analysis and information sources are identified to provide sound context for the strategy Identified all relevant factors/issues pertinent to the financial performance of the company and recognised the significance of any interrelationships between them Legal, regulatory, and organisational information is appropriately referenced by respective legislations and standards Developed and articulated standard audit procedures for balance sheet items of Cash and Bank Balance, Account Receivable, Fixed Assets, Liabilities, and Investment (or Loans) Procedures are consistent with principles of accounting and auditing Procedures are supported by references to the relevant laws and standards as applicable Described the purpose and significance of audit with detailed audit procedure and the tasks to be undertaken by the auditors Identified and summarised company’s governance and internal control procedures that will be part of the audit Described analytical procedures and tools that will be used to identify unusual trends or activity in account balances Researched company information from other sources and provided a detailed information on company’s responsibility for reporting, governance and record-keeping as a public company Evidence of synthesis and use of unifying concepts in own language and style throughout the report Cited all external sources using an appropriate referencing system Submission Guidelines Submit: Written document with all the required details in a hard copy with a signed assignment sheet Attachments, if used any Electronic versions of the assessment task and email/electronic submission arrangements are at further discretion of the trainer/assessor. Assessment Task 3: Assessment Task Develop an Audit Plan: Fortescue Metal FNS60217 | FNSACC602 Audit and report on financial systems and