DEPARTMENT OF ACCOUNTING AND CORPORATE GOVERNANCE Faculty of Business and Economics ACCG925 AUDITING AND ASSURANCE SERVICES CASE STUDY GROUP ASSIGNMENT AND VIDEO PRESENTATION Note – This is not the Unit Guide The official Unit Guide is available online and is accessed separately through the unit’s iLearn page. This Assessment Guide should be read in conjunction with the Unit Guide. CASE STUDY GROUP ASSIGNMENT (30 MARKS REPRESENTING 15% OF THE TOTAL ASSESSMENT) Groups of four (4) or five (5) are to be formed within your seminars for the group component of this assignment task. Only one submission per group is to be made electronically on iLearn by the due date and time i.e. you should nominate one member to submit. The group component consists of a written report. The objective of the group report is to develop your communication skills and capacity for collaborative learning and to test your ability to integrate skills learnt in this unit of study, i.e. to analyse a company from the auditor’s perspective, with an emphasis on applying relevant industry and current business information and context to the audit planning process. The specific industry in which your audit client operates will be allocated to you in Week 4. VIDEO PRESENTATION (15 MARKS REPRESENTING 15% OF THE TOTAL ASSESSMENT) This task builds on the work completed in the Case Study group assignment in the same specific industry allocated to each group in Week 4, and further extends application of the knowledge from this unit. Each student must address a specific part of the required and speak for 1 minute as part of the Video Presentation by the group. Each student’s contribution to the video will be marked individually (technical content and quality of communication/presentation). Page 2 Session 1 2019 ACCG925 Assessment Criteria and Requirements CASE STUDY GROUP ASSIGNMENT Common company background is provided for all groups to ensure there is no need to make any assumptions about the operational aspects of the audit client but instead the answers focus on the relevant industry, regulatory and current economic context (i.e. not on assumed entity specific operational issues). ABC Ltd You are an audit graduate assigned to the audit of ‘ABC Ltd’ (ABC) for the financial year ending 30 June 2019. ABC is an Australian company based in Sydney and has been operating successfully for over 20 years. ABC has been listed on the Australian Stock Exchange for the last 10 years and has operations throughout Australia. This is your audit firm’s third year as ABC’s auditor. ABC has received unmodified audit reports for both prior audits. Assume that ABC is a going concern and operates within the specified industry allocated to your group. Required: Based on extensive research of the specific industry allocated to your group as well as its relevant current regulatory, business and economic context, address the following audit planning requirements and risk assessment for the audit of ABC. 1. Applicable Laws and Regulations (6 marks) Provide two (2) key different categories of laws/regulations (other than financial related categories which includes legislation such as: Corporations Act 2001, Australian taxation laws, ASX listing requirements, etc.) that would be specifically applicable to ABC and the industry in which it operates. Provide an example of a specific legislation/regulation for each category and justify why it is important to ABC/specific industry. Your responses should be presented in the following format: 1. Category Legislation/regulation Justification of (1 mark) (2 marks) importance (3 marks) Example: Financial reporting Example: Corporation Act 2001 Example: ABC is a listed company and audit and therefore needs to comply with specific annual and half yearly financial reporting requirements including application of IFRSs and mandatory audit requirements. 2. Page 3 Session 1 2019 ACCG925 Assessment Criteria and Requirements 2. Risk of Fraud (4 marks) Discuss whether you consider (or not) specific account(s) to be susceptible to misappropriation or fraudulent financial reporting for the industry that ABC operates in. Your discussion should specifically address why and how the account and assertion identified is susceptible to fraud. Your responses should be presented in the following format: 2.1 Misappropriation Account Explanation of why and how (by reference to specific key (0.5 marks) assertion at risk) (1.5 marks) 2.2 Fraudulent Financial Reporting Account Explanation of why and how (by reference to specific key (0.5 marks) assertion at risk) (1.5 marks) Page 4 Session 1 2019 ACCG925 Assessment Criteria and Requirements 3. Business Risks (10 marks) Based on the specific industry characteristics, current economic conditions and business climate: a) Identify two (2) business risks that the auditor will need to consider in undertaking ABC’s risk assessment. b) Explain why each business risk identified in a) above represents significant audit (i.e. inherent) risk. c) Identify the key account affected for each risk in b) above. d) Identify the key assertion at risk in relation to each account identified in c) above. Your responses to (a) to (d) should be presented in the following format: (a) (b) (c) (d) Business Risk Explanation of audit (i.e. inherent) Key Key (2 marks) risk. account assertion (5 marks) (1 mark) (2 marks) 1. 2. Page 5 Session 1 2019 ACCG925 Assessment Criteria and Requirements 4. Responses to significant risk at assertion level (6 marks) For each of the two key accounts and assertions at significant risk identified in 3. above: a) Describe in detail a relevant practical substantive test of detail that will address the specific risk and assertion identified. b) Discuss the audit evidence you would need to obtain to undertake the procedure described in a) above. Your responses to (a) and (b) should be presented in the following format: Account Key Assertion (a) (b) at Risk at Risk Substantive Test of Detail Audit Evidence (4 marks) (2 marks) 1. 2. Page 6 Session 1 2019 ACCG925 Assessment Criteria and Requirements 5. Overall Financial Report Planning Materiality (4 marks) Select a specific base and percentage (%) for setting the planning materiality for ABC. Provide a brief justification of the base selected and the percentage (%) to be applied. Present your response in the following format: Base chosen (0.5 mark) Justification of the base (i.e. why ) (1.5 marks) Percentage (%) applied to the above base chosen (0.5 mark) Justification of % (i.e. why) (1.5 marks) Page 7 Session 1 2019 ACCG925 Assessment Criteria and Requirements LENGTH AND FORMATTING GROUP CASE STUDY Maximum 4 pages. This excludes any bibliography and appendices where applicable (note that appendices, where attached will not be marked). Font size must be at least 11 with no less that 1.15 line spacing. It is mandatory to provide your answers in the tables and format provided. SUBMISSION AND DUE DATE Only one submission per group should be made by one (1) nominated group member to Turnitin on iLearn by 4pm on Monday 6 May 2019 (Week 9). The submitting group member should be listed first on the group coversheet. The person submitting the assignment must send the Turnitin Originality report to each group member. This is because each member will be held accountable for any plagiarism. Plagiarism is treated very seriously by the University and students are advised to familiarise themselves with the University Academic Honesty Policy. If you are a group member and have not received the Turnitin Originality report within 24 hours of assignment submission from your nominated group submitter, you need to contact us at accg925@mq.edu.au All students must individually complete the self and peer assessment form and submit this in person to their seminar leader in the Week 9 seminar. PENALTIES Please note the following penalties for this assignment: • Late submissions will receive a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period of part thereof that the submission is late (for example, 25 hours late in submission-20% penalty). • Incorrect submissions (e.g. submitting the wrong file/old version/assignments for a different unit, etc) will be awarded a marked of zero (0). It is your responsibility to ensure that you submit the correct files. You may resubmit until the due date and time. Any submission on the due date and time will be taken to be the final. No further submission will be allowed. • Failure to adhere to length requirements will result in any content beyond the page limits not marked. • Failure to adhere to formatting instructions or provided formats will result in a deduction of 25% of the total available marks made from the total awarded mark for this component of the assessment task. • Failure to complete the assignment in a group will result in a deduction of 25% of the total available marks made from the total awarded mark for the group component of the case study assessment task. It is your responsibility to ensure that you are in a group early in the semester. No complaints in relation to non-performing/absent group members will be considered just before/on/after the due date and time. Any complaints should be directed to your Seminar Leader and must be brought to the Unit Convenor’s attention early in the semester. The Unit Convenor may direct students who do not contribute or participate in the group component to complete the component by themselves i.e. individually. This penalty will apply in the event of this happening. Under no circumstances will this penalty be waived for students who do not complete the assignment in a group. Page 8 Session 1 2019 ACCG925 Assessment Criteria and Requirements CRITERIA AND STANDARDS The following standards apply to this assessment task. Descriptor Mark (%) An exemplary level of performance. The group has demonstrated a very high level of understanding of the unit content and very strong ability to apply this knowledge in the context of the case study company’s industry. The group report demonstrates an extensive level of interrogation of the case study company’s industry, regulatory and business context including current economic conditions. The responses reflect a strong appreciation of the complexity of the case study company’s environment and provide appropriate, specific and practical audit responses in view of this. 85 – 100 HD A superior level of performance. The group has demonstrated a high level of understanding of the unit content and strong ability to apply this knowledge in the context of the case study company’s industry. The group report demonstrates a high level of interrogation of the case study company’s industry, regulatory and business context including current economic conditions. The responses reflect sound appreciation of the complexity of the case study company’s environment and mostly provide appropriate, specific and practical audit responses in view of this. 75 – 84 D A good level of performance. The group has demonstrated a good level of understanding of the unit content and sound ability to apply this knowledge in the context of the case study company’s industry in most instances. The group report demonstrates a reasonable level of interrogation of the case company’s industry, regulatory and business context including current economic conditions. The responses reflect an appreciation of the complexity of the case study company’s environment and generally provide appropriate, specific and practical audit responses in view of this. 65 – 74 CR An acceptable level of performance. The group has demonstrated an acceptable level of knowledge of the unit content and their ability to apply this knowledge in the context of the case study company’s industry in some instances. The group report demonstrates an acceptable level of interrogation of the case study company’s industry, regulatory and business context including current economic conditions. The responses reflect limited appreciation of the complexity of the case study company’s environment and provide some appropriate, specific and practical audit responses. 50 – 64 P Unacceptable performance. The group displays significant deficiency in their understanding of the unit content and their ability to apply this knowledge to the case study company’s industry. The group report demonstrates little or no interrogation of the case study company’s industry, regulatory and business context including current economic conditions. The responses reflect minimal appreciation of the complexity of the case study company’s environment and do not provide appropriate, specific and practical audit responses. 1 – 49 F 0 FA No group submission made. Page 9 Session 1 2019 ACCG925 Assessment Criteria and Requirements Grade VIDEO PRESENTATION (INDIVIDUALLY MARKED/ 15 MARKS REPRESENTING 15% OF THE TOTAL ASSESSMENT) Using industry knowledge developed in completing the Group Case Study Assignment and further independent research and analysis, each member of the group is required to prepare and present one of the questions below: 1. Briefly outline the significance of technology (IT) on your client’s industry in terms of recording and reporting key financial information and the likely impact of IT on your audit/audit strategy. Your answer should address as to whether specific CAATs are likely to be utilised (or not). If you decide to use a CAAT you need to specify why and how you will use it by reference to specific account(s) and assertion(s). 2. By reference to your client’s industry discuss whether you will/will not require to use the work of an expert on the audit. Justify why/why not by reference to specific issues and the relevant account at the assertion level. 3. With specific reference to your client’s industry discuss how the current Australian economic and business climate is likely to impact on your going concern assessment. Your answer should focus on two (2) specific factors and each factor’s impact on your going concern assessment. 4. By reference to the specific context of your client’s industry, identify and justify one (1) likely key audit matter (KAM). Describe how the audit will address the KAM identified (i.e. specific, practical responses the auditor would most likely undertake to address the KAM). Please note that the KAM identified must be specific to the industry. Generic answers not specific to your industry (e.g., Goodwil) will receive 0 (zero) marks. 5. Only to be addressed by groups of 5. By reference to the specific context of your client’s industry, including current regulatory and economic climate, identify and justify the most likely (and most common) type of audit opinion modification that may arise. Each specific question/required above (other than 5. in groups of 4) will be addressed by different individual group members. The allocation of the specific topic/question to be addressed by individual members needs to be negotiated and agreed upon by the group. The Video Presentation must cover all 0f the required/questions above (other than 5. in groups of 4) with each individual member addressing a different part of the presentation. Page 10 Session 1 2019 ACCG925 Assessment Criteria and Requirements VIDEO PRESENTATION (INDIVIDUALLY MARKED/REPRESENTING 15% OF THE TOTAL ASSESSMENT) SUBMISSION AND DUE DATE This assessment requires you to deliver a presentation worth 15% of your final grade. It is due in your Week 12 seminar. It is marked individually as each student’s contribution should be identifiable. All presenters must attend the seminar, otherwise the student will be awarded zero (0) marks for this assessment task. TASK OVERVIEW AND LENGTH You are required to complete this presentation in the same groups you completed your Group Case Study Assignment with. It is expected that your Video Presentation will not exceed 5 minutes for groups of 4 (6 minutes for groups of 5) with all team members speaking and on camera for a minimum of 1 minute. The questions that you and your group members are required to discuss in the video are provided on page 10 of this Assignment Brief. The completed Video Presentation is to be presented in Week 12 seminar to all students. Please bring your video on a USB or upload it to Youtube. You are required to provide a copy of your presentation to your Seminar Leader. EXTENSIONS AND PENALTIES Not applicable-undertaken in seminar. Students that do not present their video in Week 12 will be awarded a mark of 0 (zero) for the assessment task. An alternative assessment will only be considered if it meets the following criteria: 1. Students read the policy on Special Consideration. Students must read the policy to ensure that the criteria are met prior to submitting their request. 2. Students must submit a Special Consideration prior to the seminar when the presentation is due through https://ask.mq.edu.au with the reason for non attendance. No late presentations will be accepted, except for cases in which an application for Special Consideration is made and approved. Page 11 Session 1 2019 ACCG925 Assessment Criteria and Requirements CRITERIA AND STANDARDS Video Presentation (15 Marks) Presentation Content Fulfill purpose (inform), Q&A (if required) Not attempted (0%) Fail (1) (1-49%) Pass (50-64%) Credit (65-74%) Distinction (75-84%) High Distinction (85-100%) Not attempted / entirely or significantly plagiarized from other sources. Content is irrelevant and/or frequently inaccurate. Content is mostly informative and relevant. Content is always relevant and informative. Content is relevant and informative as well as comprehensively covering the topic area. Visuals haphazard or poorly executed. Visuals are adequate. Visuals are adequate and mostly interesting. Visuals creative and interesting. Content is relevant and informative as well as comprehensively covering the topic area, and makes connections with materials in new ways. Innovative and appropriate techniques/ visuals greatly stimulated audience interest. Verbal delivery is mostly clear and/or not within time limit. Verbal delivery is mostly clear, delivered within time limit. Verbal delivery is mostly clear, with a good effort at engaging the audience and delivered within time limit. Verbal delivery is always clear, with a good engagement with the audience and delivered within time limit. Marked out of 6 Effectiveness Not attempted / of visuals entirely or significantly plagiarized from other Marked out sources. of 3 Delivery Verbal (voicespeed, volume), Time limit Marked out of 6 Page 12 Not attempted / entirely or significantly plagiarized from other sources. Session 1 2019 ACCG925 Assessment Criteria and Requirements Confident delivery does not just inform the message but significantly enhances the understanding of information. 3:29 < ACCG925_S11...ment Brief.docx vuun vuruguiy ап лаппро сарсонс ~8'отасопі тv5часон то and justify why it is important to ABC/specific industry. Your responses should be presented in the following format: Category (1 mark) 1. Example: Financial reporting and audit Legislation/regulation Justification of importance (2 marks) (3 marks) Example: Corporation Act 2001 Example: ABC is a listed company and therefore needs to comply with specific annual and half yearly financial reporting requirements including application of IFRSs and mandatory audit requirements. 2. 2. Risk of Fraud (4 marks) Discuss whether you consider (or not) specific account(s) to be susceptible to misappropriation or fraudulent financial reporting for the industry that ABC operates in. Your discussion should specifically address why and how the account and assertion identified is susceptible to fraud. Your responses should be presented in the following format: 2.1 Misappropriation Account Explanation of why and how (by reference to specific key (0.5 marks) assertion at risk) (1.5 marks) 2.2 Fraudulent Financial Reporting Account Explanation of why and how (by reference to specific key (0.5 marks) assertion at risk) (1.5 marks) 3. Business Risks (10 marks) Based on the specific industry characteristics, current economic conditions and bus.
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