Assessment 2 (Date Due: Week 9)

Total Marks: 25 marks Worth: 25% of final

This must be your own work and if questioned you should be able to explain your answers without your assignment in front of you. Please read the plagiarism and academic misconduct section at the top of the Moodle page. You should also click on the link for Plagiarism Awareness and watch the video. If I consider any assignment is not the student's work, I will refer you for academic misconduct, therefore it is important that you read and listen to the plagiarism information provided to understand what is and is not acceptable behaviour.

Background

At the turn of the new millennium, several countries experienced some of the largest corporate collapses in their history. Australia, for example, experienced its largest corporate collapse: that of HIH Insurance at the beginning of 2001. These led to significant regulatory and legislative reforms. Despite these reforms, in the late 2000s, there were more corporate failures and financial scandals reported in Australia. One of the prominent corporate collapses in the late 2000's was of ABC Learning Centres, a childcare centre.

Task

Provide a brief overview of ABC Learning Centres (focusing on the nature of the operations, their business model, business risks that they would have faced and the inherent risks). Outline the major accounting issues that contributed to the collapse of the company. Did the auditor's report reflect appropriately on the state of the financial affairs of the company (obtain and examine at least the last three years of the Company's annual and auditor's reports)? Analyse the role of auditors in the collapse of ABC Learning Centres. What consequences did the auditor (s) of ABC Learning Centres face? Briefly discuss the regulatory and legislative reforms that ensued the collapse of ABC Learning Centres in Australia.

Marking Rubrics

The assignment designed to test all learning outcomes for this subject:

Grade	High Distinction	Distinction	Credit	Pass	Fail	Mar k
Section 1	Comprehens ive and well- judged application of auditor responsibiliti es with reference to relevant Standards on materiality and disclosures. Excellent presentation, correct spelling, punctuation and grammar. (8.5-10 marks)	Effective and well- judged application of auditor responsibiliti es with reference to relevant Standards on materiality and disclosures. Excellent presentation, mostly correct spelling, punctuation and grammar. (7.5-8.5 marks)	A reasonable well-judged application of auditor responsibilit ies with reference to relevant Standards on materiality and disclosures. Very good presentation , mostly correct spelling, punctuation and grammar. (6.5-7.5 marks)	Some application of auditor responsibiliti es with reference to relevant Standards on materiality and disclosures. Good presentation, some errors with spelling, punctuation or grammar. (5-6.5 marks)	Little application of auditor responsibilit ies with little or no reference to relevant Standards on materiality and disclosures. Fair presentation , errors with spelling, punctuation or grammar. (<5 marks)	/10

Section 2

Comprehens ive and well- judged analytical review of the information provided in relation to balance sheet and profit and loss information. Correct ratio analyses and descriptions with identificatio n of key risk areas. Correctly identified

Effective analytical review of the information provided in relation to balance sheet and profit and loss information. Correct ratio analyses and descriptions with identificatio n of key risk areas. Identified most relevant assertions

A reasonable review of the information provided in relation to balance sheet and profit and loss information. Some correct ratio analyses and descriptions with identificatio n of key risk areas. Identified most

Adequate review of the information provided in relation to balance sheet and profit and loss information. Some correct ratio analyses and descriptions with identificatio n of key risk areas. Identified most relevant

Response did not adequately analyse the information provided in relation to balance sheet and profit and loss information. Some correct ratio analyses and descriptions with identificatio n of key risk areas. Identified few relevant

/10

	relevant	and	relevant	assertions	assertions or
	assertions	appropriate	assertions	and	appropriate
	and	audit	and	appropriate	audit
	appropriate	procedures.	appropriate	audit	procedures.
	audit	Excellent	audit	procedures.	Fair
	procedures.	presentation,	procedures.	Good	presentation
	Excellent	mostly	Very good	presentation,	, errors with
	presentation,	correct	presentation	some errors	spelling,
	correct	spelling,	, mostly	with	punctuation
	spelling,	punctuation	correct	spelling,	or grammar.
	punctuation	and grammar	spelling,	punctuation	(<5 marks)
	and grammar	(7.5-8.5	punctuation	or grammar
	(8.5-10	marks)	and	(5-6.5
	marks)		grammar (6.5-7.5 marks)	marks)
Section	Comprehens	Effective	A	An adequate	Lacking	/10
3	ive	understandin	reasonable	understandin	understandi
	understandin	g of cash	well-judged	g of cash	ng of cash
	g of cash	flows and	understandi	flows and	flows or
	flows and	evaluation of	ng of cash	evaluation of	incomplete
	evaluation of	going	flows and	going	evaluation
	going	concern risk.	evaluation	concern risk.	of going
	concern risk.	Well-judged	of going	Thoughtful	concern
	Well-judged	application	concern	application	risk. Poor
	application	of audit	risk.	of audit	application
	of audit	procedures	Thoughtful	procedures	of audit
	procedures	to mitigate	application	to mitigate	procedures
	to mitigate	this risk.	of audit	this risk.	to mitigate
	this risk.	Comprehens	procedures	Rational	this risk.
	Comprehens	ive review of	to mitigate	review of	Inadequate
	ive review of	the audit	this risk.	the audit	review of
	the audit	report.	Rational	report. Good	the audit
	report.	Excellent	review of	presentation,	report. Fair
	Excellent	presentation,	the audit	some errors	presentation
	presentation,	mostly	report. Very	with	, errors with
	correct	correct	good	spelling,	spelling,
	spelling,	spelling,	presentation	punctuation	punctuation
	punctuation	punctuation	, mostly	or grammar.	or grammar.
	and	and	correct	(5-6.5	(<5 marks)
	grammar.	grammar.	spelling,	marks)
	(8.5-10	(7.5-8.5	punctuation
	marks)	marks)	and grammar. (6.5-7.5 marks)
Langua	Uses a wide	Uses a wide	Uses a	Uses an	Uses a	/10
ge and	range of	range of	sufficient	adequate	limited
referenc	vocabulary	vocabulary	range of	range of	range of
e	and	and	vocabulary	vocabulary	vocabulary

	grammatical structures with full flexibility and accuracy. Rare minor errors occur only as 'slips'	grammatical structures to convey precise meanings The majority of sentences are error-free	and complex sentence forms to allow some precision May produce occasional errors in word choice, spelling, word formation, grammar and punctuation	for the task and a mix of simple and complex sentence forms Makes some errors in spelling, word formation, grammar and punctuation but they do not impede communicati on	and grammatical structures which are minimally adequate for the task May make noticeable errors in spelling, word formation, grammar and punctuation that may cause some difficulty for the reader
Total Marks						/40