Maddox Smith Staff asked 5 years ago

Group Assignment

Group assignment (softcopy to be uploaded in Moodle by 11pm on 12/10/14 and hardcopy due on 13/10/14 or 14/10/14 in tutorial class) Objectives:  understanding planning stage of the audit process:  review of client business and perform audit risk analysis (applicable textbook chapters 5 and 7) Assume that you are audit senior in an accounting firm.  Your firm has recently won an audit for a company that you selected.   The whole assignment should be prepared based on your selected company in the form of report. The assumptions are that your firm does not have any other clients that operate in this industry and your audit partner is concerned about his lack of knowledge of the industry the company is operating in.  He is aware of the requirements of ASA 315 (par 25 and 26). Your audit partner asks you to prepare a memo/ report on the ‘state of the company’s industry’ and associated risk factors.  Your report must cover the requirements below and exhibit effective communication (attributes such as coherent writing style, proofreading and proper referencing) Required: a)         Prepare a list of three useful sources (the relevant information from the particular source must also be listed) that you have used to obtain the required industry knowledge.  An example of a valid source of research material would be Australian Bureau of Statistics (www.abs.gov.au)  3 marks b)         Prepare a memo to the audit partner on the ‘state of the company’s industry’ and associated risk factors.  4 marks c)         Identify a relevant general balance-related and a transaction-related audit objective based on the finding from the risk factors in part b).  The required audit objectives here must be specific to the company that you are working on and causal relationship with part b) must be established.  4 marks d)         Perform overall analytical procedures to identify significant changes in the financial positions or results of the business which require detailed investigation and explanation.  The overall analytical procedures / risk analysis should at least cover the areas in liquidity, (can the business meet present obligations?) solvency (can the business continue to operate for the foreseeable future?) and profitability (is the business profitable?)  6 marks General requirement: The length of the writing / report must be 3000 words.  Words in direct quote, bibliography or reference Lists section are not included in the word count.  The members in each group shall be limited to three persons. 3 marks will be given for correct referencing (Harvard or APA) and clear paragraph structure (topic sentences in paragraphs and show coherence with careful proofreading) The information required to work on this assignment includes company’s annual report (directors’ report and financial report) and any media releases related to the company.  There are Excel files on financial statement line data (historical) for all ASX listed companies provided for your needs (optional) in performing the analytical procedures. Softcopy is to be submitted by one member of the group. Plagiarism in terms of collaborations between groups and copying from online articles or any form of published materials will not be tolerated without proper acknowledgement.  The similarity index as shown in your group’s Turnitin report will be used to adjust the final marks.  Assignment with similarity index below 75% is deemed acceptable.       Company’s name Ticker used in ASX Student’s name 1 Astro Japan Property Group AJA   2 Bandanna Energy Ltd BND   3 Blackthorn Resources Limited BTR   4 Boom Logistics Ltd BOL   5 Buccaneer Energy Limited BCC   6 Capral Limited CAA   7 Carabella Resources Ltd CLR   8 Carnarvon Petroleum Limited CVN   9 Central Petroleum Ltd CTP   10 Ceramic Fuel Cells Ltd CFU   11 Cockatoo Coal Ltd COK   12 Coffey International Ltd COF   13 Cokal Limited CKA   14 Collection House Ltd CLH   15 Collins Foods Ltd CKF   16 Dart Energy Limited DTE   17 Data#3 Limited DTL   18 Doray Minerals Ltd DRM   19 DWS Ltd DWS   20 Elders Ltd ELD   21 Elemental Minerals Ltd ELM   22 Empire Oil & Gas NL EGO   23 Endeavour Mining Corporation EVR   24 Energy Action Ltd EAX   25 Equatorial Resources Limited EQX   26 Ethane Pipeline Income Fund EPX   27 First Australian Resources Ltd FAR   28 Flinders Mines Limited FMS   29 Focus Minerals Ltd FML   30 Galaxy Resources Ltd GXY   31