Project Description:

In this group project, you and your team will act as auditors for DWM & Co$.$ You are tasked with

assessing the company as outlined below. This project will give you hands$-$on experience in applying

auditing concepts and techniques learned in the course.

Project Objectives:

$1.$ To understand the importance of financial statement auditing in ensuring the accuracy and

reliability of financial information.

$2.$ To apply audit planning and risk assessment techniques to a real$-$world case.

$3.$ To communicate audit results effectively through written reports and presentations.

Project Steps:

$1.$ Select the company you are to work with and prepare an overview:

Using the company$$s official website, news media and previous audit reports $-$ Prepare an overview of

the company that outlines the history of the business, its origins, describe its corporate governance

structure, its parent$/$subsidiary companies, any recent major news events or significant activities, any

positive or negative news that may have an impact on the business or positively or negatively affect the

audit. Can you identify any areas of concern for the upcoming audit? $[5$ marks$]$

$2.$ Initial Examination of Financial Results:

Prepare a basic $5$ year financial summary of accounts $($or condensed financials$)$ to include: revenues

from operations, operating expenses, gross profit, admin and other expenses, profits before taxes, taxes

profit for the year, other comprehensive income, total comprehensive income, non$-$current$/$current

assets, non$-$current$/$current liabilities, share capital, other reserves, retained earnings.

Prepare a variance analysis on the condensed financial statements as you have prepared them.

Provide a brief analysis of the financial statements as you have prepared them and take into

consideration the statements of cash flows over the years to help explain significant movements in the

accounts.

Highlight the areas of concern and provide questions that you may wish to ask the financial controller

about the significant variances. $[5$ marks$]$

$3.$ Initial Risk Assessment:

Analyse the selected company$$s industry, financial stability, and any recent news or events that may

impact the audit. Identify any potential audit risks. $[$In your analysis, please differentiate between audit

risks and business risks$].$ Provide an overall risk assessment of the company and the audit clearly

explaining why the items you have identified are being considered as audit risks and note the suggested

severity of the risk. Also state how these risks may be minimised during the audit. $[5$ marks$]$