Molson Coors

ACCT-320 - Audit Fundamentals Corporate Analysis and Audit Plan Group Project - Summer 2020 As a group, you will be conducting the planning for the financial statement audit of a public company. The group term paper (see required below) is to be handed in at the beginning of Session 11 - July 29, 2020. For reference resources please use the CPA Handbook. Each group has been assigned a public company. You will be able to retrieve from www.sedar.com or from the assigned organization's website, the most recent annual report for the assigned organization. You are to assume that you are to conduct the audit for the fiscal year 2019. You can use the most recent published annual financial statements and any subsequently published quarterly reports as the basis for your analysis. Assume your firm has conducted the audit for many years. NOTE: Please do NOT attempt to contact the organization or its existing auditors. Use only publicly available information (annual reports, quarterly reports, media information or other publicly available articles). State any assumptions you find it necessary to make. The term paper is to be printed on letter size paper with one-inch margins, 12-point Times Roman font, double spaced (1.5 space NOT permitted). There is a maximum of 15 pages and one cover page. Include a cover page with the name of the company, and of all team members' names as used in course enrolment documentation. The cover page is not counted as part of the 15-page maximum. Referencing is to follow APA format. For a quick reference guide to the APA format, consult an APA reference manual available on the internet. There will be up to a 10% penalty for grammar or spelling errors or failure in following APA standards. Be familiar with Humber's policies with respect to academic honesty. Any cases of plagiarism will be prosecuted. The following questions are meant to guide you in your analysis. Please do not limit yourself to these questions.

PART 1: UNDERSTANDING THE ENTITY

Overview of the Company

1.What are the primary inputs and outputs of the company (products, services, raw materials)?

2.What is the size of the corporation (sales, assets, employees)?

3.Where is the company located (one area or multiple)?

4.Where is the company in its life cycle (development, decline)?

5.Are there any other persons/companies closely associated with the company (common ownership, related families)?

6.What image does the company present?

Overview of the Industry

1.What are the key economic factors about the industry?

2.Where is the company in its life cycle?

3.What are the key success factors, trends, and challenges for this industry?

4.How does your company compare with respect to these factors?

5.What notable accounting considerations are there for companies in this industry?

6.What particular legal or regulatory matters are of concern?

7.What social or environmental matters are of concern?

Financial Health of the Company

Analyze the company's financial health by conducting an analytical review. An appendix detailing financial statement ratios may be of assistance. You should also consider:

1.Are there any noticeable trends (growing, declining)?

2.What are its sources of capital and financing (stocks, bonds, bank loans)?

3.How has the capital marketplace responded to the company?

4.What is the quality of earnings?

5.How does it compare with the rest of its industry?

PART 2: AUDIT PLAN

Based on your understanding of the entity prepare an audit plan. You should consider at minimum the following:

1.What are the material types of transactions and transaction cycles are involved?

2.What inherent risk factors are there for this industry? This company?

3.What are the high-risk areas from an audit perspective? Why?

4.What are the low-risk areas from an audit perspective? Why?

5.What specific audit procedures would you consider? What would their timing be? Be sure to identify the underlying assertions and evidence gathering technique.

6.What would you base your initial assessment of materiality on? What would your assessment be? Be sure to indicate who the users of the financial statements are and any qualitative factors which may influence your decision.

7.How will your audit effort be allocated among geographical areas? Among lines of business?

8.Will your audit require reliance on any experts? Which ones? What level of audit staff will be required for the audit?

9.What type of audit report was issued? Which GAAP and GAAS were used? Why?

Grading

Written Report (80%)

1.Knowledge of business and industry 15 %

2.Audit plan 60 %

3.Presentation and formatting 5 %

Presentation (20%)

Part of your evaluation in each of these sections should demonstrate effective and adequate research In addition to the report a presentation of the corporate analysis and audit plan is required to be prepared in PowerPoint by the Group members who will present their findings on the above questions on July 29, 2020. Each group will present their corporate analysis and audit plan. Presentations will be for 30 minutes in length. All work must be properly referenced using footnotes and a works cited page indicating a list of sources you referred to. At least three of your sources must be from published material (text books, professional articles, interviews etc.). When in doubt - reference it. Failure to do this will result in a grade of zero and possibly further disciplinary action. Report and Presentation for each group is due on July 29, 2020. You are required to submit a hard copy and email me an electronic copy of both the Report and the Presentation. Each group member will receive the same grade. If the team feels that an individual did not participate or has been remiss in completing their parts, please bring this to the attention of the professor as soon as possible and more importantly prior to the due date. The Group Presentation will take place on July 29, 2020