The University of Newcastle PACC6002 AAS

Once you have formed your group, go to Blackboard Assessment>Group Assignment>Groups and self-enrol yourself into the group.

Purpose and Function of Group Work

Group work facilitates peer learning and encourages students to develop collaborative skills. Studying collaboratively has been shown to directly enhance student learning by:

• enhancing understanding;
• students learning from one another and benefiting from activities that require articulation and testing of their knowledge;
• providing an opportunity for students to clarify and refine their understanding of concepts via discussion and rehearsal with peers.

Group work can facilitate the development of generic skills valued by employers which include:

• teamwork skills (skills in working within team dynamics; leadership skills);
• analytical and cognitive skills (analysing task requirements; questioning; critically interpreting material; evaluating the work of others);
• collaborative skills (conflict management and resolution; accepting intellectual criticism; flexibility; negotiation and compromise); and
• organisational and time management skills.

Note: Once your group is formed and the group number is determined, your group number relates to the chosen company from the list below. Each company from the table below will be assigned to a group on a ‘first come first basis.’ No two groups will be given the same company.

Should there be more than 10 groups formed, a different company will be assigned to Group 11 onwards.

2. The Group Assignment

This Group Assignment has two components. It consists of a 1,500 written component and a 10-minute presentation during an assigned seminar.

Each group is required to submit a hard copy of the written memorandum at the commencement of the seminar in which you are scheduled to present as well as a Turnitin submission.

Each team member is required to present in the assigned seminar. You are advised to read the instructions carefully and the applicable auditing concept/theory before answering the questions in the presentation and written component.

The marking rubric for this assignment is included on Blackboard. Note that the 25 marks will be split up as follow:

1. Each presenter will be marked according to their presentation/communication skills and is worth 10%; and

1. Group written component is worth 15%. As soon as possible seek the advice from and consult with your lecturer should there be an issue within or with your group.

Check with your lecturer if you are not clear with any of the above instructions.

Assignment Question

Audit planning is one of the most demanding and important aspects of an external audit. Auditors summarise client and industry background information and discuss important accounting and auditing issues related to the client’s financial statements. Your assignment is to find and document information for inclusion in an audit planning stage.

Obtain the necessary information by downloading one of the public company’s most recent annual report from its website (you are to select one from the list below) or other sources of information. You should address the following matters in your response:

i. Written Component

Address the following matters in your response:

Part 1 – you are to complete the information asked for in Attachment 1. You need to nominate a member from your team as the Audit Manager.

Part 2 – you are to complete the information asked for in Attachment 2.

ii. Presentation

All members of the audit team together will be required to present Part 1 and Part 2 at the start of an assigned seminar. Each member of the group can speak for 2 minutes (+/- 30 seconds).

Make sure you read carefully the marking criteria for each part on the Blackboard before you start your work.

# The due date is tentative, and it may change because of the Covid-19, social distancing policies.

Attachment 1

Part 1 Template – Information on Group’s chosen company

With the most recent annual report of the chosen company complete the requested information in the following template.

MAKE SURE you pay attention to and follow the instructions (and additional guidance) provided to your Audit Manager. Where the information comes from the Annual Report it must be referenced to the page where it is located.

Add Chosen Company Name here:

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Insert the url (link) to the entity annual report site/location:

1. Balance date (year-end)

2. Date of the audit report

3. Name of the auditor (firm) signing the report

4. To whom the audit report is addressed

5. Type of audit opinion expressed in the audit report (NOT the wording)

6. Explanation(s) for any modification (what was the reason for any modification)

7. Which ASA does the audit report comply with?

For EACH of the remaining items please show the amounts (indicating the applicable currency e.g. $A and amounts in thousands or millions)

8. Assurance (audit) fees

9. Non-assurance (non-audit) fees

NOTE: for 8 & 9, make the effort to show any breakdown showing what the fees were for and who they were paid to.

10. The industry (or industries) the chosen entity operates in

11. Operating revenue (make sure the value is correct and in the correct currency)

12. Operating profit before tax

13. Operating profit after tax

14. Equity

15. Total assets

16. Total liabilities

Attachment 2

Part 2 Template – Overall inherent risk assessment

With your team understanding of inherent risk in auditing (ASA200) complete the requested information in the table below. Information obtained from the annual reports and any other credible sources must be referenced. MAKE SURE you pay attention to and follow the instructions (and additional guidance) provided to your Audit Manager

DISCUSSION

FACTOR

According to ASA200.13(n)(i) inherent risk (IR) is a measure of the susceptibility of material misstatement before considering any internal controls.

LOW

MODERATE

HIGH

Nature of client’s business

Results of previous audits

Initial versus repeat audits

Quantity of non-routine transactions

Quantity of estimates and judgement required for accounts

Potential for fraudulent financial reporting & misappropriation of assets (fraud risk factors, see ASA 240)

List any other factors (can you see any illustrations in your client’s annual report of the examples in ASA 315, Appendix 2 and ASA 570.A2) Key Audit Matters covered?

Conclusion:

Overall inherent risk level

Discuss how you arrived at your overall assessment here:

Add paragraph text here.