1.

Terms of engagement

A full statutory audit of the parent entity (Cochlear Limited) and the consolidated economic entity has been carried out under the Corporations Act 2001. This audit plan focuses on the economic entity (Cochlear Limited) overall.

2.

Brief summary of significant background information

2.1

From the background information you gathered in relation to Cochlear, identify and briefly explain five (5) significant business risk factors that the auditor needs to consider for the Cochlear engagement. (5 marks)

2.2

Laws and regulations applicable to Cochlear Limited (3 marks)

Provide a list of different categories of laws/regulations (other than financial related categories which includes legislation such as: Corporations Act 2001, Australian taxation laws, ASX listing requirements, etc) that would be applicable to Cochlear. Provide an example of specific legislation/regulation for each category of laws/regulations identified.

2.3

Risk of Fraud (4 marks)

Discuss whether you consider that there are any accounts susceptible to asset misappropriation and fraudulent financial reporting within Cochlear and explain why?

2.3.1

Misappropriation of assets

2.3.2

Fraudulent financial reporting