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ACCT6006 Auditing

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Question:

The assignment requires you to apply the knowledge and skills that you have developed during your auditing studies to an authentic scenario involving the publically listed company, Dick Smith Electronics Ltd. that has recently gone into
liquidation.In this assignment you will need to research the company through news bulletins,ASX data and other media releases. Be sure to cite any sources of information being very careful not to plagiarise your sources. The assignment should be presented as a report/essay. You should not answer the questions in bullet points but instead write the paper in a way that includes answers to the questions being asked. Marks will be given according to the marking guide below.

The report must be written in your own words.
Required
1. Provide a brief history of Dick Smith Electronics Ltd (no more than a page) and an explanation of what caused the collapse of the company.
2. The directors are being accused of breaching Australian Accounting Standards Which standards are in question? Explain what was done (or allegedly done) by the directors.
3. What signs should the auditor have looked for to indicate there might be a going concern problem.
4. Provide a brief analysis of the 2014/15 Annual Report for any evidence that the company might not be a going concern.
5. Why do you think the auditors gave an unmodified audit opinion for the financial year ended 30 June 2015 
 
Based on your knowledge of auditors’ legal liability do you think the auditors of Dick Smith Electronics Ltd, Deloittes, have a case to answer for providing an unmodified audit opinion for the financial year ended 30 June 2015 Provide clear explanations as to why you have come to your conclusion .
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