You participated in a vacation program at a local audit firm during your semester break. During the

vacation program, you assisted an audit senior with planning a medium$-$sized company, including

developing appropriate substantive audit procedures. You have one more semester to complete your

postgraduate course and have indicated to the audit manager that you would like to work full$-$time at

the audit firm upon completing your course.

The audit manager has asked you to write a report to determine your suitability as a candidate for a

permanent role in the audit firm. The manager wants to assess your ability to apply the knowledge

you gained to the audit planning process, develop appropriate substantive procedures, and develop

your report writing skills.

You are required to address the following in your report $($refer to rubrics on pages $5$ & $6$ of this

document for a breakdown of marks and achievement criteria by component$)$:

$1)$ Identify $4$ business risks of The Company that will increase the risk of material misstatement

$($specifically inherent risk$)$ at the assertion level for classes of transactions or account

balances. For each business risk, identify only $1$ class of transaction or account balance

$($income statement or balance sheet line item$),$ and for each class of transaction$/$account

balance, please identify the assertion most $($only one$)$ at risk of misstatement. You need to

explain why each business risk will lead to a risk of misstatement to the specific class of

transaction$/$account balance and assertion you have identified.

$2)$ Describe, in detail, the appropriate substantive procedure that will address each class of

transaction or account balance and assertion identified as at risk of material misstatement.

The description of procedures must be detailed enough for someone with limited auditing

knowledge to carry out the procedures correctly.

$3)$ Additional Requirements:

A$.$ Do not use the same combination of account balance$/$class of transaction and

assertion as used in the sample case study discussed in week $6$ and week $12($Refer

to workshop notes for weeks $6$ and $12).$

Page $3$ Kaplan Business School Assessment Outline $2023$ T$3$

B$.$ Refrain from repeating the same combination of account balance$/$class of transaction

and assertion in your answers. For example, if you have identified the existence of

inventory as the assertion and account balance at risk of misstatement for your first

business risk identified, do not use the existence of inventory for the second, third or

fourth business risk. You can identify inventory as at risk but for an assertion other than

existence, or you can identify the existence of a different account balance to be at risk

of misstatement. Remember, though, that whatever account balance$/$class of

transaction and assertion is identified as at risk of misstatement, you must logically and

convincingly explain why this is the case based on the business risk you have identified.

C$.$ Where the same combination is repeated, marks will not be awarded for requirement $2$

$($description of appropriate substantive procedures$)$ as the substantive procedure will be

the same.

D$.$ You must include the following in your report:

a$)$ Title page

b$)$ Table of contents

c$)$ Executive summary

d$)$ Introduction

e$)$ Body of the report

f$)$ Conclusion

g$)$ References

E$.$ Use PPT slides or other visual aids during the video presentation, and don$$t exceed $6$

minutes.

Possible Sources of Information for the assessment may include:

$1.$ The latest annual report of The Company

$2.$ The Company website

$3.$ Announcements on ASX about The Company

$4.$ News articles on The Company

$5.$ Corporate Governance Statements of The Company