Topic: Client evaluation / Key Audit Risks
As a team from the same tutorial, choose an ASX listed firm. Each team must research on a unique company. Report to your tutor as soon as you have chosen the firm. Once the choice is locked in by your tutor, no other teams in the subject (not just from the same tutorial) are permitted to pick your chosen firm.
You are the team responsible for planning the forthcoming audit engagement for the year ending June 2019. You have been assigned to gather relevant background information and prepare a report for a meeting with your audit partner and audit managers.
Your report must address the following issues:
1. To demonstrate your understanding of the firrn, provide a detailed description of how it conducts its operations. This must include a description of its revenue streams, products and services, business processes, competitive environment, srategies, management and governance. The appendix to ASA 315 will help guide your response. The information presented should be reflective of your in-depth understanding of how the company operates not merely a summary of information from the annual report. [8 marks]
2. List and explain three key audit risks which would irnpact on the audit of the firm. Include the account and assertion most affected by the risks identified. Be sure to link audit risks to their applicable business risks (from your research in sections 1 and/or other applicable research). [8 marks]
3. Your assignment submission should be present. in a format as if it were to be presented to a meeting of senior auditors at your accounting firrn and should be designed and laid out so as to most effectively impart your key rnessactes. It should be succinct, and the use of diagrams, tables and graphs is encouraged.
The report should also be coherent and consistency is expected throughout (e.g., formatting, language style, and linkages between the questions). Note that groups who split up the questions and work independently are likely to have more difficulty accomplishing this objective compared to groups who work on each of the parts collaboratively.
Note, merely complying with the presentation guidelines will receive low marks for presentation. To gain full marks, student will need to present their assignment in a highly professional manner. [4 marks]