Introduction
The information environment facing accountants has changed radically. In the past accountants were largely concerned with collecting and processing data; but no longer. Today, vast amounts of information are collected and processed automatically and the challenge for accountants is to select and communicate useful and relevant data. The assignment provides students with this challenge.
Procedure
Select one company listed on the ASX. The company name must start with the letters A-G. Your role is that of external auditor. You have been assigned by the audit partner to investigate the inherent risks that impact on the Financial Report audit, and to recommend key audit procedures to address these risks. In preparation for the 2010 financial report audit (year end 30/06/10):
Part 1 30% Collect and analyse information on the quantitative aspects of inherent risk. This process is called Analytic Review. Information should be acquired from the FinAnalysis data base in the library and from the company’s annual report (including notes). No calculation of ratios is required or permitted. Do not include any numerical data in this section unless it is discussed in the report. Be specific about what potential misstatements might exist in the financial reports, and relate these to specific accounts and assertions where possible.
Part 2 30%. Collect and analyse period relevant information on non-quantitative aspects of inherent risk for your client. See Appendix 1 of ASA315 for guidance. Information should be acquired from,http://www.uklunwen.cn/liuxuekecheng/daixieassignment/ for example, the business press like the Australian Financial Review or the business section of the Age (search for your company name). Information is also available in the company’s Annual Report. Information must be relevant to the period in question. Make sure you identify the particular assertions, accounts or other aspects of the financial reports that are likely to be misstated, and so of interest to the auditor.
Part 3 40%. For each of significant inherent risk identified in parts 1 and 2, recommend high quality substantive auditing procedures designed to deal with these risks. Ignore internal controls and control risk.
Caution: Parts 1 and 2 are about inherent risk relating to the financial report: that is, matters that have an impact on audit planning, audit procedures and the auditor’s opinion, it is not about business risk in general. In the past students have done great business risk analyses of their companies, but not mentioned audit risk or the audit – and failed. You need to identify how the risks are likely to lead to specific errors in the financial reports, Eg if inventory is particularly subject to theft, like in a jewellery store, then this risk is likely to result in overstatement of inventory because some reported inventory items will not exist. 留学生论文代写网代写留学生论文,英国硕士论文,澳洲论文,留学生论文代写网代写留学生论文,英国硕士论文,澳洲论文,
