ACCM4400 Case Study - Auditing and Assurance  

Assessment 3 Information

Subject Code: ACCM4400

Subject Name: Auditing and Assurance

Your Task You must complete a report detailing your findings and suggested audit procedures as stated in Assessment Question for an ASX listed company. The name of the company will be made available to you at 08:00 (AEST) on the Friday of Week 11.

Assessment Description

This assessment is designed to test your ability to apply the knowledge gained from ACCM4400 workshops during the semester, in identifying assertions at risk and developing appropriate audit procedures. This will be done by analysing available information of an Australian company (hereinafter referred to as “The Company”) that is listed on the ASX. The name of The Company will be made available on the Assessments page of MyKBS for ACCM4400 on Friday of Week 11 and you must submit your report at 19:55 (AEST) on Tuesday of Week 13.

Your facilitator will discuss the assessment requirements during Workshop 11. Workshop participants will be divided into groups to discuss the assessment requirements based on a sample case study. Your facilitator will then give feedback on each group’s responses to the application of the questions to the sample case. It is expected that the discussions during Week 11 will clarify the expectations and requirements for performing at a high standard in this assessment.

Please remember that this is an INDIVIDUAL ASSESSMENT and must be based on The Company, name of which will be released at 08:00 (AEST) on the Friday of Week 11.

Learning Objectives:

After completing this assessment, you will be able to:

1) Research information about the selected company (using multiple sources)

2) Address particular areas of the audit process and develop appropriate audit procedures

3) Develop professional report-writing skills

Assessment Question:

During your semester break, you participated in a vacation program at a local audit firm. During the vacation program, you assisted an audit senior on the planning of a medium sized company, including developing appropriate substantive audit procedures. You have one more semester to complete your post graduate course and have indicated to the audit manager that you would like to work on a full- time basis at the audit firm on completion of you course.

The audit manager has asked you to write a report as part of the process of determining your suitability as a candidate for a permanent role in the audit firm. The manager wants to assess your ability to apply the knowledge you gained, to the audit planning process and developing appropriate substantive procedures as well as your report writing skills.

You are required to address the following in your report (refer to rubrics on page 4 & 5 of this document for breakdown of marks and achievement criteria by component):

1. Identify 4 business risks of The Company, that will increase the risk of material misstatement

(specifically inherent risk) at the assertion level for classes of transactions or account balances. For each business risk, identify only 1 class of transaction or account balance (income statement or balance sheet line item), and for each class of transaction/account balance please identify the assertion most (only one) at risk of misstatement. You need to explain why each business risk will lead to a risk of misstatement to the specific class of transaction/account balance and assertion that you have identified.

2. Describe in detail, the appropriate substantive procedure that will address each of the class of transaction or account balance and assertion identified as at risk of material misstatement. The description of procedures must be detailed enough for someone without auditing knowledge to be able to carry out the procedures correctly.

Additional Requirements: You must include the following in your report:

1. Title page

2. Table of contents

3. Executive summary

4. Introduction

5. Body of report

6. Conclusion

7. References

Sources of information for this assessment may include:

1. The latest annual report of The Company

2. The Company website

3. Announcements on ASX with regards to The Company

4. News articles on The Company

5. Corporate Governance statements of The Company

Important Study Information

Academic Integrity Policy

KBS values academic integrity. All students must understand the meaning and consequences of

cheating,plagiarism and other academic offences under the Academic Integrity and Conduct Policy.

What is academic integrity and misconduct?

What are the penalties for academic misconduct?

What are the late penalties? How can I appeal my grade?

Click here for answers to these questions: http://www.kbs.edu.au/current-students/student-policies/.

Word Limits for Written Assessments

Word limit is 1,800 words (max.). Do not include title page, table of contents, executive summary and reference list in the word count.

Submissions that exceed the word limit by more than 10% will cease to be marked from the point at

which that limit is exceeded.

Study Assistance

Students may seek study assistance from their local Academic Learning Advisor or refer to the

resources on the MyKBS Academic Success Centre page. Click here for this information.

http://www.kbs.edu.au/current-students/student-policies/

https://elearning.kbs.edu.au/course/view.php?id=1481