Auditing need more than 1000 less than 1500 words

Question # 00083825 Posted By: solutionshere Updated on: 07/22/2015 01:00 AM Due on: 08/21/2015
Subject Accounting Topic Accounting Tutorials:
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HOLMES INSTITUTE

FACULTY OF

HIGHER EDUCATION

HA3032 Auditing

Trimester 2 / 2012

ASSIGNMENT 1

You are required to read the following statement issued by ICAA (Institute of Chartered Accountants in Australia and provide an essay of between 1,000-1,500 words (being the minimum and maximum). It should be properly referenced and must be primarily of your own work.

Press release:Legislation to improve the quality and transparency of the auditing process has been introduced into the House of Representatives this week by Parliamentary Secretary to the Treasurer David Bradbury. The Corporations Legislation Amendment (Audit Enhancement) Bill 2012is the result of a Treasury review of audit quality and extensive stakeholder consultation during 2011 on measures that are designed to enhance audit quality and ensure that Australia's regulatory framework remains in line with international best practice.

Measures in the Bill include:

  • Requiring audit firms to publish an annual transparency report if they conduct audits of 10 or more significant entities
  • Empowering ASIC to issue an audit deficiency report in relation to an individual audit firm if it identifies an audit deficiency in the auditor's quality control system or the conduct of an audit that may be detrimental to the overall quality of the audit
  • Removing duplication of ASIC and Financial Reporting Council (FRC) audit inspection responsibilities so that ASIC continues its audit inspection program and the FRC focuses on providing strategic policy advice and reports on the quality of Australian audits.
  • Allowing ASIC to communicate directly with an audited body.
  • Allowing a two-year extension to the five-year auditor rotation requirement where it will not give rise to a conflict of interest and will prevent the loss of knowledge and experience where rotation could undermine the quality of the audit.

ICAA report: Reforms to enhance Audit Quality
Available from: www.chartered accountants.co.au/industry-Topics/Audit-and-Assurance

Other sources:

AUASB website

CPAA website

Required:

Discuss the following in your essay (approximately 1,000 words and no more than 1,500 please):

What each of the above actually refers to and what it means.

What is your view, giving a rational explanation to your view (you may use other sources to support your view, properly referencing). Why do you think that these measures were introduced?

The due date for this assignment will be week 5 (must be lodged by 5.00pm on the Friday). Please note: a soft copy must be lodged on Safeassign by the due date and a hard copy provided to your lecturer.

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