whatsapp

Connect on Whatsapp : +97143393999, Uninterrupted Access, 24x7 Availability, 100% Confidential. Connect Now

Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

Stuck on Your Question?

Get 24x7 live help from our Top Tutors. All subjects covered.

loader
250 words

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Students Who Viewed This Also Studied

37 Pages
MA611 Auditing

Question: Part 1: Understanding a Client to Plan a Financial Report Audit You have recently completed your Bachelor of Business Degree – Accounting Stream at MIT and now working as a gradu ...

Course

MA611

Type

Assignment

Subject

Audit

University

Melbourne Institute of Technology

6 Pages
BBAC601 Auditing and Assurance

Task: A unit‟s intended learning outcomes (ILOs) are one of three inter-related components of a constructively aligned unit, the others being the assessment tasks and the teaching and learning acti ...

Course

BBAC601

Type

Assignment

Subject

Audit

University

CIC Higher Education

0 Page
Finance Management

...

Course

BUU44670

Subject

Audit

University

Trinity College Dublin

Season

spring

0 Page
Health And Safety

...

Course

BUU44670

Subject

Audit

University

Trinity College Dublin

Season

spring

MMPA510 Auditing

Question

Answered

Professional and Ethical Standard, (PES) 1, requires that professional accountants have the competence to undertake an audit. ISA (NZ) 315 outlines procedures that auditors must follow in gaining an understanding of a business. Assume that you are a manager in an auditing firm in New Zealand and your firm has been approached by the Auditor General’s Office to carry out their audit of Air New Zealand for the years ended 30 June 2019 and 2020. You have been asked by one of the audit partners in your firm, who is considering whether to propose for the audit engagement, to gather some information about the company. There are several sources that you can access for research in preparing information for the audit partners. For example, the Air New Zealand website would be a good place to start your research. Questions to be addressed by those presenting and for those not presenting, in your bullet- point summaries, are:a)What are the business activities of Air New Zealand Limited that you will need to understand to carry out a successful audit? Using information, you obtain about the company, and the industry it is in, come to an informed view as to the ‘business’ and ‘industry’ risk for this prospective client. Be sure to set out the basis (reasons) for your decision. b)Evaluate specific ethical issues that could potentially arise from performing a statutory audit on these financial statements. How should those issues be addressed? Refer to the Professional Code of Ethics as appropriate. Keep in mind the ownership of Air New Zealand, the role of the Financial Markets Authority (FMA), legislation, XRB Auditing Standards and the Auditing Standards and Statements of the Auditor General. c)What are the key accounting issues from your review of other sections in the annual reports and financial statements, including the accounting policies? Based on your understanding of the business and the accounting issues, what specialist skills and competencies will you need to carry out the audit? d)Identify “specific parties” who may rely on the work of the auditor and the audit firm. Also identify what remedies are available to those “specific parties” should they be dissatisfied with the standard of the audit work. Describe some conditions (with reference to existing legal precedent) in which they might be successful in any action taken.

MMPA 510 Tri 2 2020- Auditing Workshops4|PageWorkshop 2: What are the risks, what is material and what assertions will have impact?Background informationAssume that your firm is successful in gaining the audit of Air New Zealand Limited. You are asked by the audit engagement partner to plan the audit, in particular determine areas of risk, materiality and assertions to be examined. As always you wish to keep your detection risk to a minimum. NOTE: You are not expected to assess control risks as this would require having access to this entity, which is not permitted for the purposes of this presentation workshop. Questions to be addressed by those presenting (and for those not presenting, in bullet-point summaries) are: a)Carry out a preliminary analytical procedure to review the Air New Zealand annual financial statements as these are appropriate for the client. Explain the reason for choosing selected ratios, what you found and, how the results will influence your planning of the audit. b)Based on the ‘business risk’ and ‘industry risk’ identified (in workshop 1) for Air New Zealand, what assertions over account balances and other disclosures in the financial statements will these risks impact and how? Identify key assertions that you think need to be tested and explain the audit objective behind these tests. c)Using your judgement, identify a ‘base’ and select a materiality level for Air New Zealand’s (Group) balance sheet. Justify y o u r decision. Allocate that amount to the balance sheet accounts in proportion to their $ size and assess the results. Consider what would have occurred if you had chosen a larger or a smaller ‘materiality’ amount, or if you had allocated them differently. d)The audit partner in charge of the audit of Air New Zealand plans to obtain evidence of its revenue recognition by relying on internal controls and use of analytical procedures. Air New Zealand’s revenue recognition policy relating to money received in advance, is to initially hold them in a deferred revenue account and later transfer the appropriate amount to sales revenue when goods are transported. However, suppose that, during subsequent testing of internal controls a significant number of instances occurred where revenue was incorrectly recognised immediately upon customers’ payment in advance, rather than when passengers are transported. (Note that this scenario is a theoretical ‘thought experiment’ and does not relate to any real circumstances pertaining to Air New Zealand’s internal control systems or financial statements.) Analyse the implication of the above issues in planning the audit of Air New Zealand and prepare a draft audit strategy for the audit of Air New Zealand. Hints: ISAs and AG ISAs 300, 315, 320 and 330 in particular provide useful information in identifying issues concerning planning, industry and entity risk, materiality and responses to assessed risks. NB: Do NOT include any extensive consideration of going concern, related parties or client fraud in your risk analysis at this stage. MMPA 510 Tri 2 2020- Auditing Workshops5|PageWorkshop 3: Designing Substantive TestingBackground informationAssume that your audit partner asks you to design detailed substantive testing programs for accounts receivable and sales; inventory; purchases and accounts payable; and payroll systems of Air New Zealand. Your partner also asks you to incorporate specific analytical procedures and tests of detail (i.e. direct tests on balances and tests of transactions of a balance). Note that- identified weaknesses and other issues, as described in each of the following subsystem (a - d), are created for teaching purposes and bears no relationship to events relating to Air New Zealand, nor does it apply to any other organization. Required: Design/develop a substantive audit tests program and explain & justify your audit program in terms of audit objectives (also called ‘audit assertions’)

MMPA510 Auditing

Answer in Detail

Solved by qualified expert

Get Access to This Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

78 More Pages to Come in This Document. Get access to the complete answer.

MyAssignmenthelp.com is committed to provide top-notch quality academic assistance at affordable price. To help students from different backgrounds, we have hired more than 3000 experts. Owing to in-depth knowledge in their respective subjects, they effectively provide geography assignment help, Physics assignment help, Strategic assignment help, history assignment help, art architecture assignment help and much more.

More MMPA510 MMPA510 Auditing : Questions & Answers

Q
icon

We aren't endorsed by this University

MA611 Auditing

Question: Part 1: Understanding a Client to Plan a Financial Report Audit You have recently completed your Bachelor of Business Degree – Accounting Stream at MIT and now working as a graduate auditor for a major accounting firm, Ernie and Youngster (EYS). EYS has just won the tenders for ...

View Answer
Q
icon

We aren't endorsed by this University

BBAC601 Auditing and Assurance

Task: A unit‟s intended learning outcomes (ILOs) are one of three inter-related components of a constructively aligned unit, the others being the assessment tasks and the teaching and learning activities. Upon completion of this assessment task you will achieve the ILOs for a unit that you are ex ...

View Answer
Q
icon

We aren't endorsed by this University

Finance Management

...

View Answer
Q
icon

We aren't endorsed by this University

Health And Safety

...

View Answer

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

Choose Our Best Expert to Help You

icon

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?