Learning Objectives

"For some time, regulators have referred to a lack of professional scepticism among auditors as a major issue in audit quality. Regulators argue that were auditors to be more sceptical, more misstatements in financial statements would be uncovered through the audit process. Despite increased awareness among auditors of the importance of professional scepticism in ensuring audit quality, regulators continue to refer to a lack of professional scepticism in their oversight reports." (ACCA, 2017 p. 5).

practice audit planning and risk assessment by applying the knowledge you learned in class to a real company. In addition, this assignment is designed to cultivate your professional scepticism and critical thinking. In the process of doing this assignment, you will also learn industry-wide knowledge of the targeted company and how to apply analytical procedures. As what auditors do in their working papers, you will learn how to justify and support your audit decisions with evidence.

Targeted Company

Please choose ONE of the following companies for your assignment. Your analysis should focus on the company you select, that is, do not cover all of the companies listed below.

1. 2. 3. 4. 5.

Tasks

Assume that you are an auditor assigned to the audit of the company you choose and you are at the Risk Assessment Phase of the audit of 2020 Financial Report. You are required to complete the following audit planning tasks:

1. (1)Provide a brief understanding of the entity and the industry.
2. (2)Evaluate audit risk and going-concern risk.
3. (3)Identify and justify two key audit matters.
4. (4)Calculate the Planning Materiality for the 2020 audit. Explain and justify your
5. assumptions, choices, and calculation.

Commonwealth Bank of Australia Woolworths Group Ltd

Sonic Healthcare Ltd

Goodman Group

Telstra Corporation Ltd

1

(5)Identify two key accounts by analysing financial and non-financial information. Explain and justify your choices.

(6) For each key account identified, identify one key assertion at risk of material misstatement. Explain and justify your decisions.

Please search for related news, browse websites, read previous financial reports, read reports by journalists and analysts, collect information from different sources, and conduct empirical analyses. The 2020 annual report has not been released, so you need to rely on the financial and non-financial information available at this moment for analysis. Logical reasoning and corroborative evidence are critical in this assignment.