You are part of the audit team responsible for planning the Bega Cheese (parent and the consolidated economic entity) audit engagement for 2017. You and your colleagues have been assigned to gather relevant background information and prepare a report for a meeting with your senior audit managers and partner. In the report you must address the following issues:
a. What are the areas in which Bega Cheese conducts its operations
b. Which particular laws/regulations (other than financial related categories which include legislations such as: Corporation Act 2001, Australian taxation laws, etc.) affect its operations You need to list SIX laws/regulations.
2. Identify FIVE inherent risks for the audit of Bega Cheese. For each inherent risk, identify the account or accounts that may be affected.
3. With specific reference to Bega Cheese’s corporate governance arrangements, you need to assess the likelihood of the potential reliance that could be placed on the overall control environment. Your conclusion should be supported by at least FIVE factors.
4. Recently Bega Cheese acquired the Vegemite and other Kraft brands in a $460 million deal that takes it far from its roots as a cheese producer. How will this acquisition affect your 2017 audit plan for Bega Cheese Your answer should be supported by at least FIVE factors.
5. In early 2016, Bega Cheese and Blackmores set up their joint venture- called Bemore- to supply infant formula and other nutritional foods to consumers in Australia and Asia (mainly China). However, due to regulatory change in China and intense competition the joint venture did not go as well as initially hoped. As a result, there was a dramatic fall in
the share price of Bega Cheese. How will this fall affect your 2017 audit plan for Bega Cheese Your answer should be supported by at least FIVE factors.