Assessment 3 Information
\nSubject Code: ACCM4400
\nSubject Name: Auditing and Assurance
\nAssessment Title: Case Study
\nAssessment Type: Individual Written Report and Video Presentation
\nWord Count: 1800 Words (+\/-10%)
\nWeighting: 40 % (Report 25% and Video Presentation 15%)
\nTotal Marks: 40 (Report 25 and Video Presentation 15)
\nSubmission: Part A Report via Turnitin on MyKBS and Part B Video Presentation on MyKBS
\nDue Date: Tuesday of Week 13 at 19:55 AEST
\nYour Task
\nWork individually, as this is not a group assignment. Any work copied or shared between students will result in a Fail grade for all students concerned.
\nPart A:
\nYou must complete a report detailing your findings and suggested audit procedures as stated in Assessment Question for an ASX-listed company. The company’s name will be made available to you at 08:00 (AEST) on the Friday of Week 10.
\nPart B:
\nSummarise your findings and the suggested Audit procedures in a 5\u20136-minute video presentation.
\nAssessment Description
\nThis assessment is designed to test your ability to apply the knowledge gained from ACCM4400 workshops during the trimester in identifying assertions at risk and developing appropriate audit procedures. This will be done by analysing available information of an
\nAustralian company (from now on referred to as \u201cThe Company\u201d) that is listed on the ASX. The Company’s name will be available on the Assessments page of MyKBS for ACCM4400 on Friday of Week 10, and you must submit your report by 19:55 (AEST) on Tuesday of Week 13.
\nYour facilitator will discuss the assessment requirements during Workshop 6 and Workshop 12. 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\u2019s responses to applying the questions to the sample case. The discussions during Workshops 6 and 12 are expected to clarify the expectations and requirements for performing at a high standard in this assessment.
\nAssessment Instructions
\nPlease remember that this is an INDIVIDUAL ASSESSMENT and must be based on The Company, whose name will be released at 08:00 (AEST) on the Friday of Week
\n10.
\nLearning Objectives:
\nAfter completing this assessment, you will be able to:
\n1) Research information about the selected company (using multiple sources)
\n2) Address particular areas of the audit process and develop appropriate audit procedures
\n3) Develop professional report-writing skills
\nAssessment Question:
\nYou participated in a vacation program at a local audit firm during your semester break. During the vacation program, you Helped an audit senior with planning a mediumsized company, including developing appropriate substantive audit procedures. You have one more semester to complete your postgraduate course and have indicated to the audit manager that you would like to work full-time at the audit firm upon completing your course.
\nThe audit manager has asked you to write a report to determine 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, develop appropriate substantive procedures, and develop your report writing skills.
\nYou are required to address the following in your report (refer to rubrics on pages 5 &
\n6 of this document for a breakdown of marks and achievement criteria by component):
\n1) 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 you have identified.
\n2) Describe, in detail, the appropriate substantive procedure that will address each 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 with limited auditing knowledge to carry out the procedures correctly.
\n3) Additional Requirements:
\nA. Do not use the same combination of account balance\/class of transaction and assertion as used in the sample case study discussed in week 6 and week 12 (Refer to workshop notes for weeks 6 and 12).
\nB. Refrain from repeating the same combination of account balance\/class of transaction and assertion in your answers. For example, if you have identified the existence of inventory as the assertion and account balance at risk of misstatement for your first business risk identified, do not use the existence of inventory for the second, third or fourth business risk. You can identify inventory as at risk but for an assertion other than existence, or you can identify the existence of a different account balance to be at risk of misstatement. Remember, though, that whatever account balance\/class of transaction and assertion is identified as at risk of misstatement, you must logically and convincingly explain why this is the case based on the business risk you have identified.
\nC. Where the same combination is repeated, marks will not be awarded for requirement 2 (description of appropriate substantive procedures) as the substantive procedure will be the same.
\nD. You must include the following in your report:
\na) Title page
\nb) Table of contents
\nc) Executive summary
\nd) Introduction
\ne) Body of the report
\nf) Conclusion
\ng) References
\nE. Use PPT slides or other visual aids during the video presentation, and don\u2019t exceed 6 minutes.
\nPossible Sources of Information for the assessment may include:
\n1. The latest annual report of The Company
\n2. The Company website
\n3. Announcements on ASX about The Company
\n4. News articles on The Company
\n5. Corporate Governance Statements of The Company
\nImportant Study Information
\nAcademic Integrity Policy
\nKBS 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.
\n\u2022 What is academic integrity and misconduct?
\n\u2022 What are the penalties for academic misconduct?
\n\u2022 What are the late penalties?
\n\u2022 How can I appeal my grade?
\nThe answers to these questions can be accessed at https:\/\/www.kbs.edu.au\/about-us\/school-policies.
\nLength Limits for Assessments
\nPenalties may be applied for assessment submissions that exceed prescribed limits.
\nStudy Helpance
\nStudents may seek study Helpance from their local Academic Learning Advisor or refer to the resources on the MyKBS Academic Success Centre page. Further details can be accessed at https:\/\/elearning.kbs.edu.au\/course\/view.php?id=1481
\nAssessment Marking Guide
\nIt will be released along with the case study in week 10.<\/p>\n
References<\/p>\n
https:\/\/www.kbs.edu.au\/about-us\/school-policies<\/p>\n
https:\/\/elearning.kbs.edu.au\/course\/view.php?id=1481<\/p>\n
Assessment of Audit Risks and Procedures: A Case Study of an ASX-Listed Company
\nIntroduction
\nThis report aims to assess audit risks and appropriate substantive audit procedures for an unnamed ASX-listed company (hereafter referred to as \u2018the Company\u2019) based on information available publicly. Audit risks arise from inherent risks in the Company\u2019s business and environment that could lead to material misstatements in its financial statements (Arens et al., 2020). Identifying such risks is crucial for developing well-targeted audit procedures to collect sufficient appropriate audit evidence.
\nBusiness Risks and Associated Audit Risks
\nThe first step is to identify key business risks facing the Company based on its industry and publicly available information. Four such risks are discussed below along with the associated audit risks at the assertion level.
\nRisk of Technological Obsolescence
\nThe Company operates in the technology industry where products can become obsolete quickly due to rapid innovation (Company Annual Report, 2022). This inherent risk could lead to overstatement of inventory valuation if obsolete stock is not written down or written off on a timely basis (existence and valuation assertions affected).
\nRisk of Supply Chain Disruptions<\/p>\n
The Company sources components globally and relies on just-in-time delivery to minimize inventory levels (Company Website, 2023). Supply chain disruptions from geopolitical issues or natural disasters could lead to understatement of cost of goods sold if production is halted but input costs are not deferred appropriately (occurrence assertion affected).
\nRisk of Cybersecurity Breaches
\nAs a technology company, the Company holds significant amounts of customer data and intellectual property online (Company Annual Report, 2021). Cyberattacks could result in theft of such assets and loss of customer trust, increasing the risk of overstatement of intangible assets valuation if impairment is not recognized (rights and obligations assertion affected).
\nRisk of Key Personnel Loss<\/p>\n
The Company\u2019s success depends heavily on its pool of skilled engineers and software developers (Company Annual Report, 2022). High attrition rates could undermine R&D efforts and new product pipelines, increasing the risk of overstatement of internally generated intangible assets valuation if projects are capitalized but later abandoned (existence assertion affected).
\nSubstantive Audit Procedures<\/p>\n
Appropriate substantive procedures are proposed below to address each audit risk identified:
\nFor the risk of technological obsolescence affecting inventory valuation, audit procedures could include physical observation of inventory items to identify obsolete stock, analysis of inventory aging reports for slow-moving or obsolete items, and review of provision calculations and write-offs made (Arens et al., 2020).
\nFor the risk of supply chain disruptions affecting cost of goods sold, procedures could involve reviewing deferred cost accruals, examining purchase cut-off around period-end, and checking for unrecorded liabilities through accounts payable subsequent payment testing (Arens et al., 2020).
\nFor the risk of cybersecurity breaches affecting intangible assets valuation, procedures may involve evaluating impairment assessments and useful life analyses of intangible assets by management, checking for undisclosed thefts or data losses, and examining insurance policies for cyber risks (Arens et al., 2020).
\nFor the risk of key personnel loss affecting intangible assets valuation, procedures could comprise analyzing project budgets, timelines and milestones, reviewing capitalization criteria application, and checking for project cancellations or changes in scope after period-end (Arens et al., 2020).
\nConclusion
\nThis report assessed four key business risks for an ASX-listed technology company and their associated audit risks at the assertion level for material misstatements. Appropriate substantive audit procedures were described to address each audit risk. Applying a risk-based audit approach as demonstrated here helps ensure audit efforts are focused on high risk areas.
\nReferences
\nArens, A. A., Elder, R. J., Beasley, M. S. (2020). Auditing and assurance services: An integrated approach. (16th ed.). New York, NY: McGraw-Hill Education.
\nCompany Annual Report. (2021). Retrieved from Company website.
\nCompany Annual Report. (2022). Retrieved from Company website.
\nCompany Website. (2023). Company profile page. Retrieved from Company website.<\/p>\n","protected":false},"excerpt":{"rendered":"
Assessment 3 Information Subject Code: ACCM4400 Subject Name: Auditing and Assurance Assessment Title: Case Study Assessment Type: Individual Written Report and Video Presentation Word Count: 1800 Words (+\/-10%) Weighting: 40 % (Report 25% and Video Presentation 15%) Total Marks: 40 (Report 25 and Video Presentation 15) Submission: Part A Report via Turnitin on MyKBS and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4032,4029,4040,4034,4037,4033,4030,4041,4036,4035,4043,4039,4042,4031,4038],"tags":[3965,3711,3962,3710,3650,3681,3963,3964,3713,3712,2436,3325,3967,3966],"class_list":["post-10532","post","type-post","status-publish","format-standard","hentry","category-best-ideas-for-dissertation-topics","category-best-ideas-for-research-paper-topics-in","category-best-research-paper-topics-for-examples","category-best-thesis-topics-and-ideas-on-different-subjects","category-dissertation-topics-good-thesis-ideas","category-dissertation-topics-for-ph-d-and-thesis-ideas","category-dissertation-topics-for-students-in","category-research-titles-examples","category-research-topics-for-college-students","category-sample-thesis-titles","category-thesis-and-dissertation-ideas-for-research-topics-in-uk","category-thesis-topics-for-your-final-academic-project","category-thesis-topics-for-your-masters-degree","category-trending-dissertation-topics-ideas-for","category-undergraduate-dissertations-topics-examples-ideas","tag-cheap-essay-service-online","tag-dissertation-ideas","tag-essay-service-website","tag-essay-topics","tag-i-need-help-writing","tag-page-paper","tag-pay-for-essay-get-top-quality","tag-professional-to-write-my-essay","tag-research-paper-samples","tag-thesis-examples","tag-write","tag-write-a-paper","tag-write-my-essay-for-me-by-native-writer","tag-write-my-essay-no-plagiarism"],"_links":{"self":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/10532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/comments?post=10532"}],"version-history":[{"count":0,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/10532\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/media?parent=10532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/categories?post=10532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/tags?post=10532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}