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ACCT 3004 Professional Auditing

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Assessment Task Three

Due Date: 11.59 pm on Monday 7th February 2022

Weight: 15%

Word limit: minimum 1500 words, maximum 1600 words

Instructions:

After the review of the half-year financial report, the engagement partner in charge of the assurance engagement has identified potential financial fraud and misstatements presented in the accounting records. Under this circumstance, the partner decided to ask you to conduct further substantive tests prior to the year-end audit.

Answer the following questions:

  1. Comment and evaluate internal controls applied by the chosen company during the
    audit procedures to identify the operating effectiveness of controls. Give two
    examples of internal controls applied by the selected company.
  2. Examine the techniques of testing controls that should be applied by the auditing
    firm. Given an example for each technique identified.
  3. Determine relevant substantive testing for THREE (3) accounts selected from
    balance sheet accounts of the chosen company, such as cash, trade receivables,
    inventory, property, plant and equipment (PPE), intangible assets, goodwill,
    investment, loan, payables, provisions, leases, long-term liabilities, equity,
    revaluation surplus, deferred tax assets, deferred tax liabilities. You should identify
    the objectives, substantive tests of transactions and account balances for each
    account identified. Refer to relevant ASAs or other resources.
  4. Examine the techniques of substantive testing that should be applied by the auditing
    firm. Given an example for each technique identified.
  5. Prepare an auditor’s opinion to the shareholders of the chosen company. Refer to
    ASA 700 or other references.
  6. Identify two Key Audit Matters (or one Emphasis of Matter if there is any) with
    reference to the Auditor’s Report.
    This assessment is being able to obtain sufficient audit evidence and follow appropriate
    procedures, to evaluate the impact on audit opinions, reporting and application of the
    auditing standards. As such, a key requirement of this assessment is your ability to draw in
    relevant sections of certain auditing standards. The outcome of this assessment will be you
    presenting an appropriate audit opinion for the chosen company that is being audited.
    However, it is about more than simply quoting standards. It is about using the knowledge in
    those standards to apply them to your chosen company. That is, it is about applying your
    judgment! As such, every student’s assessment will differ according to the issues that apply
    to their chosen company.
    Submission:
    • This is an individual assignment.
    • You should submit the answers to the Turnitin submission link provided on the
    Blackboard site.
    Reference:
    • Harvard Referencing Style
    • You need to provide appropriate references to support your analysis or evaluation.

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