ACC00715 Professional Auditing – assessment 2

Assessment task 2 (25%)

In this folder are links to the relevant discussion forum and instructions about what you will need to do:

(a) Identifying financial reporting disclosures relevant to auditing for an entity of your choice – 10%

Due: anytime up until noon Monday, 4 December (2017)

NOTE: this task will form the basis for the Part (b) requirements of this Task (see below).

(b) Making an assessment of the overall inherent risk level for your chosen entity – 15%

Due: anytime up until noon Monday, 18 December (2017)

Assessment 2a (10%)

Clicking on the link above will take you to the relevant Discussion Forum (DF) to add your post.

Identifying financial reporting disclosures relevant to auditing for an entity of your choice.

This task first requires you to access the latest (most recent) set of financial statements/report for an entity of your choosing (ideally a company, but other types of entity are OK provided they have been audited (not reviewed … that is, NOT a concise financial report or a half-yearly financial report). There are several caveats to this choice …

• entities are chosen on a first come, first served basis and your choice of entity must not duplicate one already chosen. You may “reserve” an entity by adding a DF post that identifies the name of the entity you have chosen in the subject line of your post. If you add the name of the entity in the message and NOT the subject line, the reservation is void because it will not be readily visible to others. Anytime before the deadline, you must then add the required detail using the template provided (see below) by modifying (or editing) your original reservation, NOT by adding a new post.
• the financial report you use for this task need not be electronic – it is quite acceptable to source the information from a hard copy if you are in possession of one … just be sure it is the most recent one. Nor does the entity you choose have to be Australian – as we move to full international harmonisation of accounting and auditing standards, the requirements should be very similar. This will allow some flexibility to localise your knowledge and share our international affiliations. Of course, all posted information must be in English. PLEASE NOTE that if you choose a US or European entity and are not able to locate any assurance or audit fees in their report, you will need to choose an alternative entity J… “cannot find or locate” is NOT an option for ANY of the disclosures requested.

Ignore these protocols at your own peril! Additional guidance is provided below (as well as on the attached template).

OK … you have the financial report for the entity you have chosen; you have made sure it has not been reserved by anyone else (and added your own reservation); so, what do you need to use the financial report for?

Use this template Assessment Task2a template.rtf  JUST AS IT IS SUPPLIED. There there is no need to change anything.

Further Instructions for submission are included on the template. No word limit is specified given the specific nature of the information requested on the template.

Additional Guidance

The material attached explains the requirements set out above, and on the template (also above).

Additional explanation Task 2a.rtf

Assessment 2b (15%)

Clicking on the link above will take you to the relevant Discussion Forum (DF) to add your post.

This task requires you to build on the information you gathered and documented for Task 2(a) and make an assessment of the overall inherent risk level for your chosen entity (NOT the Lakeside Company!).

Use this template: Assessment Task2b template.rtf

to document and support your professional judgement about the overall assessment of the level of inherent risk for the entity you have chosen for Task 2. You will no doubt need to supplement the specific information provided for Task 2(a) with other material in the Annual Report and the Notes to the Financial Statements. The important thing is to support your judgements and do so by reference to the applicable ASAs and the facts (NOT assumptions) relevant to your chosen entity.

Instructions for submission are included on the template. Aim for around 750 words (that YOU add to the template).

This file (Assessment Task2b guide(1).rtf) provides some guidance about things for you to ponder and explore in your preparation and research to complete the Task 2b template.

In addition, to assist with the preparation of the template for YOUR CHOSEN ENTITY during one of the live support sessions in Week 5 or 6 (prior to your Study Break) I will facilitate completing a similar template for the Lakeside Company so that the “process” is illustrated. I will advise which of the three scheduled sessions in due course – I aim to use the one that is most regularly attended … and if no one turns up … well, there will be nothing completed to guide you!