1 | P a g e H A 3 0 3 2 G r o u p A s s i g n m e n t T 1 2 0 1 8 HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION Group Assignment HA3032 Auditing TRIMESTER 1 / 2018 Instructions: 1. This assignment is to be submitted in accordance with the assessment policy, as stated in the Subject Outline and in the Student Handbook. 2. It is the responsibility of the student, who is submitting the work, to ensure that the work is in fact her/his own work. Incorporating another person’s work or ideas into one’s own work without appropriate acknowledgement is an academic offence. 3. Students can submit all assignments for plagiarism checking (self-check) on Blackboard before final submission in the subject. For further details, please refer to the Subject Outline and Student Handbook. 4. Maximum marks available: 20 marks. (Weighting = 20%) 5. Due date of submission: Week 11 6. Assignment word length = 3,000 words 7. Please use the “Spelling & Grammar” and “Word Count” functions and include the actual no. of words on the front page of the report. 8. Important Note: Please submit the Assignment through SafeAssign 2 | P a g e H A 3 0 3 2 G r o u p A s s i g n m e n t T 1 2 0 1 8 Format of the Report 1. You should at least have the following details: a. An Assignment Cover Page clearly stating all of your members names and student numbers b. Brief Introduction or Overview of what the report is about. c. Main Body of the report with sections to answer the above sections and with appropriate section headings. Provide your responses in a table format. d. Conclusion e. List of References. 2. Ensure all diagrams and tables are clearly labelled and explained. 3. Ensure all materials used are correctly referenced. 4. Use page numbers at the bottom of each page of the assignment. 5. Use the correct in-text referencing, appropriate expression, correct grammar, spelling and punctuation, 10-12pt font, appropriate word length and normal margins. Plagiarism will be severely penalised. Learning Outcomes 9.1 – Identify and distinguish between tests of controls, substantive tests of transactions and substantive tests of balances. 9.2 -Identify and understand when the auditor will undertake substantive audit procedures in response to specific assessed risks of material misstatement. 9.3 – Understand how assertions relate to account balances 9.4 – Understand how to select the most efficient and effective combination of audit procedures that allows them to achieve the audit objective 9.5 – active participation in an “audit team context” with professional group discussions 9.6 – Co-operation with fellow students to produce a joint deliverable on time and to a high standard. 3 | P a g e H A 3 0 3 2 G r o u p A s s i g n m e n t T 1 2 0 1 8 Group Assignment Theme: Developing an Audit Program for a selected listed Company The objective of this group assignment is to provide you with an opportunity to design an 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. Introduction and Project Requirements 1. Students are required to form groups of three students and inform their session lecturer of their group members by completing the “HA3032 T1 2018 Group Form details”. 2. If you have difficulties forming such groups, please contact your lecturer asap. 3. Each group of students will select, 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 – 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 [Minimum of 3000 words] for the client/company in a group of 3 members. 6. Use publicly available online resources for research purposes. 4 | P a g e H A 3 0 3 2 G r o u p A s s i g n m e n t T 1 2 0 1 8 Detail Project Tasks: Developing an Audit Program for a selected listed Company 1. Select a listed company from the current ASX List. 2. Understand the nature of the entity and its industry, including the following items: a. Business operations b. Investments and investment activities c. Financing and financing activities d. Financial reporting practices 3. Perform analytical procedures of the Statement of Financial Position and of Financial Performance over the last three years using appropriate ratios and metrics. Select four key ratios and provide a brief explanation in the report. This can 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 and 7.) 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 worksteps 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. Refer to the following websites for further.
AUDITING – T1 2018 Group Assignment Form Details Please complete this form as soon as possible and provide one copy only to your lecturer. You will select or be assigned a unique ASX listed company to review for this group assignment. It cannot be a company which has already been selected by another group. Group No._____ (Note – this will be assigned to you by the Unit Convenor) Lecturer Name___________________________ (T1 2018) Session No.________ Campus Location_________________________ Date______________ Student Name Student No. 1. __________________________ ______________________________ Student Name Student No. 2. __________________________ ______________________________ Student Name Student No. 3. __________________________ ______________________________ Company Selected_________________________________________________________ Approved by Unit Co-ordinator_______________________ Date______________ Note – All students in the group, as listed above, are required to be active participants and all members agree to co-operate in the interests of each other’s learning and educational development. Each student has a responsibility to contribute equally to the completion of the group assignment and submit one assignment only by the due date. If your group encounters major problems and issues, which may prevent or delay completion of this assignment by the due date, student(s) need to inform their lecturer immediately. Signed____________________________ Date__________ Signed____________________________ Date__________ Signed____________________________ Date__________