HA3032 – AUDITING Assessment, “Developing an Audit Program for a selected publically listed Company

[ad_1]

HA3032 – AUDITING
Assessment Details and Submission Guidelines
Trimester T2 2019
Unit Code HA3032
Unit Title Auditing
Assessment Type Group Assignment + Group Presentation (In – Class) including power-point slides
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 oftransactions
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
1.6- Co-operation with fellow studentsto produce a joint assignmentin a report format
on time and to a high standard along with power-pointslides.
Weight 30% of the total assessment
Total Marks Group Assignment (20 marks) + In Class Presentation (10 marks) = 30 marks
Word limit Maximum 3,000 words
Due Date Week 9
Submission
Guidelines
• 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 or APA referencing style.
HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION
Page 2 of 5
HA3032 AUDITING
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 – 5 students and inform their session lecturer of their
group members by completing the “HA3032 Group Form details”.
2. If you have difficulties forming such groups, please contact your lecturer ASAP.
3. Each group of students willselect, or have selected for them, a unique ASX listed company to use
for progressive analysis in this group assignment.
4. Final approval of the company/client – i.e. any company listed on the ASX and which has not
already been selected by another group – is required by your lecturer.
5. Prepare a detailed audit program Report [3,000 words] for the client/company in a group of 4 – 5
students. Students must use a Report Format with an Executive Summary and Table of Contents.
6. Use publicly available online resources for research purposes.
7. Prepare a 10mins oral presentation in class using power-point slides and graphics (10marks).
Detail Assignment Tasks: Developing an Audit Program for a selected listed Company
1. Select a listed company from the current ASX List or this will be allocated to your group.
2. 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?
3. 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.
4. 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)
5. Select up to ten different material account balances, at least five assets and five liabilities.
6. For each material account balance selected, list the relevant financial report assertions and
explain why the selected assertions are applicable to each account.
7. 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)
8. 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?
Page 3 of 5
HA3032 AUDITING
9. 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 2 10%
Audit Risk Model – Assessment of Inherent Risk, Control Risk, Detection Risk 2 10%
Analytical Review of the selected company, including ratio analysis in a table 2 10%
Material Account Balance Identification (Minimum 5 x Assets and 5 x Liabilities) 5 25%
Assertions identified – Correct Assertions are stated and explanations are noted 2 10%
Audit Program – Audit work steps / procedures are clearly stated and listed. 5 25%
Sampling Plan for each material account balance with samples sizes. 2 10%
Weight 20 marks 100%
Group Presentation (In-Class) – Marking Criteria Weighting
Effective verbal communication of the key content in a professional manner. 4 40%
Effective use of power-point slides with clearly legible text in concise statements
and effective coverage of the content in a professionally produced presentation,
which is engaging and logically structured. Effective use of both text and graphics
4 40%
Total length of the presentation is within the 10mins limit and effective
participation of all group members is noted. Each speaker speaks an equal time.
4 speakers x 2.5mins each = 10mins
5 speakers x 2mins each = 10mins
2 20%
Weight 10 marks 100%
Total Weight 30 marks
Page 4 of 5
HA3032 AUDITING
HA3032 Auditing – Marking Rubric
Part Excellent Good Satisfactory Unsatisfactory
Key Business
Risk
Identification
(2 marks)
Relevant Business Risks
have been clearly stated
and are appropriate
after considered
analysis.
(2 marks)
Business Risks are
well stated and
appropriate to the
company selected.
(1.5 marks)
Business Risks are
noted and stated,
but they are only
generic in nature.
(1 mark)
Business Risks have
not been adequately
addressed. There is
insufficient or
irrelevant information
noted.
(0.5 mark)
Audit Risk
Model
(2 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. (2 marks)
The Audit Risk
Model has been
correctly
understood and all
the risk
components are
noted. The analysis
is sound, but detail
is lacking.
(1.5 marks)
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. (1 mark)
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.
(0.5 mark)
Analytical
Review
(2 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.
(2 marks)
The Analytical
review has been
well performed and
includes four key
ratios. They are
relevant and
presented in a table
with some good
commentary. (1.5
marks)
The Analytical
review has been
satisfactorily
performed. Ratios
are noted and
there is some
commentary, but
there are some
minor errors.
(1 mark)
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. (0.5 mark)
Material
Account
Balance
Identification
(5 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.
(5 marks)
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.
(3.5 – 4.5 marks)
Materiality has
been stated with
some
explanation.
Asset accounts
and liability
accounts have
been provided,
but some are not
material. Some
Formatting is
noted.
(2.5 – 3.5 marks)
Materiality has not
been calculated and it
is missing. Account
balances are either
only partially stated or
missing. Accounts
selected are not asset
or liability accounts or
they are not material
account balances.
There is a lack of
understanding.
(0.5 – 2 marks)
Assertions
Identification
(2 marks)
Each of the material
accounts selected has
the correct financial
report assertions
associated with it. A
clearly written and
correct explanation has
been provided. It is well
presented in the table.
(2 marks)
Each of the
material accounts
selected has
financial report
assertions
associated with it.
A correct
explanation has
been provided.
(1.5 marks)
The accounts
selected have
financial report
assertions
associated with
them. A minimal
explanation has
been provided.
(1 mark)
No financial report
assertions have been
provided or they are
clearly incorrect.
There is a lack of
understanding of the
requirements.
(0.5 mark)
Page 5 of 5
HA3032 AUDITING
Audit Program
(5 marks)
A comprehensive set of
appropriate audit
procedures have been
provided and they are
very well stated for
each of the material
account balances. There
is a logical linkage with
the financial report
assertions. This section
is clearly and well
formatted in a table.
(5 marks)
A set of
appropriate audit
procedures have
been provided and
they are effectively
stated for each of
the material
account balances.
There is a linkage
with the financial
report assertions.
This section is well
formatted in a
table structure.
(3.5 – 4.5 marks)
Audit procedures
have been
provided and
they are stated
for each of the
material account
balances. There is
an association
with the financial
report assertions.
This section is
appropriately
presented in a
table structure.
(2.5 – 3.5 marks)
Audit procedures have
not been provided or
they are mis-stated or
incorrect for the
account balances.
There is no association
with the financial
report assertions or
the assertions are
missing. This section
has not been
presented in a table
structure. It is not
presented well. There
is a lack of
understanding.
(0.5 – 2 marks)
Sampling Plan
(2 marks)
For the material
account balances, a well
-constructed sampling
plan has been included
which states the
sampling method
selected, the
appropriate sample
sizes of items to be
tested, as well as other
important sampling
information for
evaluating the results of
the sample. This is
included in a table.
(2 marks)
For the material
account balances, a
good sampling plan
has been included
which states the
sampling method
selected and the
sample sizes of
items to be tested.
(1.5 marks)
For the material
account balances,
a satisfactory
sampling plan has
been included
which includes
the sample sizes
for each account.
(1 mark)
A sampling plan has
either not been
included or is only
partially provided.
There is a lack of
understanding of basic
sampling concepts and
there is some incorrect
included. (0.5 mark)

The post HA3032 – AUDITING Assessment, “Developing an Audit Program for a selected publically listed Company appeared first on mynursinghomeworks.

[ad_2]

Source link