This assignment is about using ASA standard & Auditing, Assurance and Ethics Handbook to complete.
Case Study 2 - Auditing ACCT3000 (Semester 1, 2020) You are an Audit Senior currently planning the 30 June 20X9 audits of Comp Limited (Comp), Health Limited (Health) and News Limited (News). At recently scheduled planning meetings with Comp, Health and News, you obtain the following overview of this year's operations for each of the three client companies: Comp is a manufacturer of computer hardware. The old costing system that was developed in- house, could no longer keep up with the complex and detailed manufacturing costing process that provides tender/bid submission costings and the company's comprehensive reporting requirements. As a result, Comp purchased and installed a popular off the shelf (not customized) costing system to support the highly sophisticated and cost sensitive nature of its product designs. Since this system had been utilised by many other firms in the industry, Comp has not thoroughly tested the adequacy of the features and controls inherent within the system. At the same time, the staffs are not feeling confident with the new system due to lack of training and supervision. Staff are also concerned that data might be lost when converting to the new system. Health operates chemist shops in Perth. A large proportion of the sales transactions are conducted in cash. Health claims on having strong control policies and procedures in place to monitor the employees handling cash transactions and safeguarding the cash. However, the proper implementation of those policies had been questioned by the previous auditor. As Health is planning to expand to Mandurah and Busselton, it is applying for a bank loan to obtain additional funding for the expansion. Before approving the loan, the bank requires Health to provide them with an audited financial statement. The unaudited figures of current year suggest Health's revenue to have increased significantly by 25 percent from last year while the gross profit appears to have increased marginally by 5 percent. News has been in the paper manufacturing business for the last 17 years. It manufactures and distributes paper throughout the Australian continent. During the last five years, News opened four new factories in three different locations, financed mainly from bank loans. Due to rapid growth in the company, the financial director John Brown is keen to set up an internal audit department. Currently the project appears to have stalled, as some of the senior executives do not foresee the benefit of setting up such a department and are unwilling to commit any additional fund or resources on this plan. The senior executives argue that they are competent enough to monitor the internal controls of News. Required: Prepare a memorandum to the audit manager, outlining your risk assessments relating to Comp, Health and News. When making your risk assessments: (a) Identify and discuss the risks that may arise from each of the above companies. In your explanation, please mention the components of the audit risk model affected. (b) Identify how the audit plan will be affected and recommend specific audit procedures to address these risks.Rubric Detail |Levels of Achievement Criteria Below Expectations Meets Expectations Exceeds Expectations Genre and 0.00 to 49.00 % 50.00 to 69.00 % 70.00 to 100.00 M Disciplinary Conventions Did not use appropriate Has adequately used Has shown an expert Written memo structure and format appropriate memo structure understanding in using an Communication show awareness of purpose and format; shown awareness appropriate memo structure and audience; and write using of purpose and audience, and and format showing Weight concise and precise language written using concise and awareness of purpose and describing major issues precise language describing audience, and writing using 25.00% relevant to the case study. major issues relevant to the concise and precise language case study. describing major issues relevant to the case study. Content 0.00 to 49.00 % 50.00 to 69.00 %% 70.00 to 100.00 % Development (Written Did not use appropriate and Has used appropriate and Has used appropriate, Communication) relevant content to develop relevant content to develop relevant, and compelling Weight and explore ideas within the and explore ideas within the content to illustrate mastery context of the discipline. 25.00% context of the discipline. of the subject. Written 0.00 to 49.00 % 40.00 to 69.00 %% 70.00 to 105.00 %% Communication . it is difficult to understand Able to follow structural Competent grasp of Graduates will the Intent of the writing due to conventions of the discipline, cinciplinary structure and be able to Incorrect language use. e.g Induding technical language writing conventions. . Clear demonstrate mistakes in grammar. use, paragraphs, order of and direct written style, with written vocabulary or sentence sections, formatting and clear topic sentences, thesis communication structure, . Fails to referencing style. . The intent statements and signpouting to In their select demonstrate an of the writing is apparent, in direct the reader. . Any minor business understanding of the use of spite of any technical errors in grammatical errors do not disciplineisk disciplinary conventions e.g. word choice or grammar te-g. Interfere with effectiveness. . ass gnment stricture, subject verb agreement, Writing is appropriate to the Weight 0.COM formatting and reference articles, preposition) purpose and audience. style. Issue (Critical 0.00 to 49.00 %% 50.00 to 69.00 % 70.00 to 100,00 %% Thinking Does not identify and identifies and communicates identifies and communicates Weight all of the main risks from the 35.00% communicate any of the main some of the main risks from risks from the case study and the case study and applies case study and applies sound does not demonstrate arry basic discipline knowledge to discipline knowledge to discipline knowledge to analyze major issues and offer analyze major issues and offer analyse issues on hand. suitable recommendations. suitable recommendations. Conclusions 0.00 to 40.00 9% 50.00 60 69.00 % 70.00 to 100.00 %% [Critical Thinking) Does not draw any basic Draws some logical Draws all logical logical conclusions/recommendations conclusions/recommendations Weight conclusions/recommendations from scenarios. from scenarios. 35,00% from scenarios. Critical Thinking 0.00 to 49.00 % 50.00 to 69.00 %% 70.00 to 100.00 % (AGL) Graduates will * Uses information sources Collects credible information Synthesised a diverse range be able to think that are not reliable or from a range of sources. . of data from credible sources. critically about credible. . Decisions are not Demonstrates some ability to Generated and carefuly business issues based on the evidence synthesize and evaluate or considered multiple options to and problems provided or are unjustified analyse information, . Reaches reach robust evidence-based and draw an evidence based decision or decisions that are clearly outcome, although may not justified in relation to theLevels of Achievement Criteria Below Expectations | Meets Expectations Exceeds Expectations defensible fully justify the decision or problem. . Explicitly conclusions recognise the limitations. recognises the limitations of Weight the decisionis. 0.00% View Associated Items
