HI6026 Group Assignment T1 2026 Assessment Guidelines

Group Assignment

HI6026 Group Assignment T1 2026

Group Assignment Guidelines and Specifications

Reference requirements

Adapted Harvard Referencing

Adapted Harvard Referencing approach example and guidelines:

1. Reference sources in assignments are limited to sources which provide full text access to the source's content for lecturers and markers.
2. The Reference list should be located on a separate page at the end of the essay and titled: References.
3. It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname and each referenced numbered (1 to 10 etc.). In addition, each reference MUST include a hyperlink to the full text of the cited reference source.

1. All assignments will require additional in-text reference details which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of the content, paragraph where the content can be found.

For example, "The company decided to implement an enterprise-wide data warehouse business intelligence strategy (Hawking et al, 2004, p3(4))."

Non-Adherence to Referencing Guidelines

Where students do not follow the above guidelines:

1. Students who submit assignments which do not comply with the guidelines, a 20% penalty will be applied.
2. Later penalties will apply, as per the Student Handbook each day, after the student/s have been notified of the resubmission requirements.

HI6026 Group Assignment T1 2026

Students who comply with guidelines and the citations are "fake" will be reported for academic misconduct.

Assignment Requirements – Questions

Groups must be formed by members from the same class. Each group has been allocated a subject company for completing this assignment. In the excel file "Find Your Company" under "Assessments" on Blackboard, you will find the listed company you have been allocated for completing this assignment.

As a group, your assignment should be based on the company allocated to your group (Refer to the information given above). Your assignment will not be marked if you use a different company than the one you have been allocated, or you will be asked to resubmit your assignment using the correct company. Students are not allowed to complete the assignment using the same company as used by another group.

Go to the website of your allocated company. Then, go to the Investor Relations section of the website. This section may be called: "Investors", "Shareholder Information," or similar titles. In this section, find the company's annual report and other related reports. Download the firm's latest annual report and other related information and reports and save it to your computer. For example, these reports may be dated 30 June 2024 or 30 June 2025.

Requirements - Questions

As a group, assume that you have been appointed as the external auditor for your allocated company for the financial year ending June 2024 or 2025. Prepare a report to adequately address the following:

Part 1

As external auditors for the assigned company, prepare a report on this part that includes the following:

1. Describe the key characteristics of the company and its business strategy, including the industry in which it operates, and the market conditions it faces.
2. Identify the major business risks and threats facing the company and assess their potential impact on its operations and financial reporting, particularly in relation to audit planning and risk assessment.
3. Assess the likelihood of material misstatements in the company's financial statements by analyzing factors contributing to inherent and control risks. Additionally, explain the concept of detection risk and its significance within the audit process (15 marks)

HI6026 Group Assignment T1 2026

Part 2

Sustainability Assurance Engagements in Australia: mandatory ESG reporting

Australia has recently introduced mandatory climate-related financial disclosures and is progressively moving toward mandatory assurance of sustainability (ESG) information.

Critically evaluate the importance of mandatory sustainability and ESG reporting and assurance in the Australian context and check if your allocated company is compliant.

In your response:

1. Analyze how mandatory ESG reporting enhances transparency, accountability, and decision-usefulness for stakeholders.
2. Critically examine the challenges and limitations associated with mandatory ESG reporting and assurance, including issues related to measurement uncertainty, greenwashing, and auditability of non-financial information.
3. Evaluate the implications for the auditing profession, particularly in terms of:

• audit evidence,
• professional judgement,
• assurance levels (limited vs reasonable), and
• the expansion of the auditor's role.

1. Discuss whether mandatory ESG reporting is likely to reduce or widen the audit expectation gap, providing justification for your argument. (15 marks)

The assignment structure must be as follows:

1. HolmesInstitute Assignment Cover Sheet – Full Name, Student No., Contribution.
2. Executive Summary

• The Executive summary should be concise and not involve too much detail.
• It should make commentary on the main points only and follow the sequence of the report.
• Write the Executive Summary after the report is completed, once you have an overview of the entire text.
• The Executive Summary appears on the first page of the report.

1. Contents Page – This needs to show a logical listing of all the sub-headings of the report's contents. Note this is excluded from the total word count.
2. Introduction – A short paragraph that includes background, scope and the main points raised in order of importance. There should be a brief conclusion at the end of the Introduction.
3. Main Body Paragraphs with numbered subheadings – Detailed information that elaborates on the main points raised in the Introduction. Each paragraph should begin with a clear topic sentence, then supporting sentences with facts and evidence obtained from research and finish with a concluding sentence at the end.
4. Conclusion – A logical and coherent evaluation based on a thorough and an objective assessment of the research performed.
5. Appendices – Include any additional explanatory information which is supplementary and/or graphical help communicate the main ideas made in the report. Refer to the appendices in the main body paragraphs, as and where appropriate. (Note this is excluded from the total word count.)

HI6026 Group Assignment T1 2026

Group Formation and Group Assignment

To ensure that all students participate equitably in the group assignment and that students are responsible for the academic integrity of all components of the assignment. You need to complete the following Group Assignment Task Allocation table, relevant evidence (authenticity of your assignment) which identifies which student/students are responsible for the various sections of the assignment.

This table needs to be completed and submitted with the assignment as it is a compulsory component required before any grading is undertaken. Students that are registered in a solo group are not required to fill this table.

Both assessment items must be submitted on Blackboard. The written assignment must be in a report format and submitted through safe assign prior to final submission. The originality percentage should be as low as possible. The written submission must be double-checked, edited and rephrased if the originality percentage and plagiarism risk is noted as high, as per safe assign.

Marking Criteria

HI6026 Group Assignment T1 2026

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic integrity is integral to maintaining academic quality and the reputation of Holmes' graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or Unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six categories of Academic Integrity breaches

HI6026 Group Assignment T1 2026

Marking Rubric

Note: This report is provided as a sample for reference purposes only. For further guidance, detailed solutions, or personalized assignment support, please contact us directly.

HI6026 Auditing, Assurance and Compliance

Group Assignment Sample Solution (Template)

Holmes Institute Assignment Cover Sheet

Executive Summary

This report has been prepared from the perspective of external auditors appointed for the financial year ending 2024/2025 for the allocated company. The report evaluates the company’s business characteristics, operational environment, business strategy, and major risks impacting financial reporting and audit planning.

The report further examines inherent risks, control risks, and detection risks that may lead to material misstatements within the financial statements. In addition, the report critically evaluates mandatory Environmental, Social and Governance (ESG) reporting and sustainability assurance requirements in Australia.

The report discusses the significance of ESG reporting in improving transparency, accountability, and stakeholder confidence while also identifying limitations such as greenwashing, auditability challenges, and measurement uncertainty. Finally, the report evaluates the implications of mandatory ESG assurance on the auditing profession and the audit expectation gap.

Table of Contents

1. Introduction
2. Part 1 – External Audit Assessment
   2.1 Company Overview and Business Strategy
   2.2 Major Business Risks and Threats
   2.3 Material Misstatement Risks
3. Part 2 – Sustainability Assurance and ESG Reporting
   3.1 Importance of Mandatory ESG Reporting
   3.2 Challenges and Limitations of ESG Reporting
   3.3 Implications for the Auditing Profession
   3.4 ESG Reporting and the Audit Expectation Gap
4. Conclusion
5. References
6. Appendices

1. Introduction

Auditing plays an essential role in ensuring the reliability, transparency, and credibility of corporate financial reporting. External auditors are responsible for examining financial statements and assessing whether they provide a true and fair view in accordance with accounting standards and regulatory requirements.

This report evaluates the allocated company from an external audit perspective. The report first examines the company’s operations, business strategy, market conditions, and major business risks. It then analyses risks relating to material misstatements within the financial statements.

The second part of the report focuses on mandatory sustainability and ESG reporting requirements in Australia and their impact on auditing practices. The report critically evaluates ESG assurance challenges, stakeholder expectations, and implications for the auditing profession.

Overall, the report demonstrates how auditors assess business risks and emerging sustainability reporting obligations to improve audit quality and stakeholder confidence.

2. Part 1 – External Audit Assessment

2.1 Company Overview and Business Strategy

[Insert Company Name] operates within the [insert industry] industry and is involved in activities such as [insert activities]. The company generates revenue through [insert revenue streams]. The company operates in a highly competitive environment influenced by economic conditions, consumer demand, technological advancements, and government regulations.

The company’s business strategy focuses on achieving sustainable growth through market expansion, innovation, operational efficiency, and customer satisfaction. The company may also focus on digital transformation, cost reduction, acquisitions, or international expansion to strengthen its competitive advantage.

The industry environment presents both opportunities and challenges. Economic uncertainty, inflation, interest rates, supply chain disruptions, and regulatory changes may affect the company’s profitability and operations.

As external auditors, understanding the company’s industry and business strategy is important because it assists in identifying areas with higher audit risk and designing appropriate audit procedures.

2.2 Major Business Risks and Threats

The company faces several significant business risks that may impact operations and financial reporting.

Economic Risk

Changes in economic conditions such as inflation, interest rate increases, and reduced consumer spending can negatively affect company revenue and profitability.

Regulatory and Compliance Risk

The company must comply with accounting standards, taxation laws, environmental regulations, and corporate governance requirements. Non-compliance may result in penalties, litigation, or reputational damage.

Cybersecurity and Technology Risk

Increased dependence on digital systems exposes the company to cyberattacks, data breaches, and system failures. These risks may affect operational continuity and financial data integrity.

Operational Risk

Supply chain disruptions, labour shortages, equipment failures, or ineffective internal processes may affect operational performance and financial reporting accuracy.

Financial Reporting Risk

Management estimates involving asset valuations, impairment calculations, provisions, and revenue recognition may create opportunities for material misstatements.

These risks are relevant to audit planning because auditors must identify areas with higher likelihood of material misstatement and allocate greater audit attention to those areas.

2.3 Material Misstatement Risks

Material misstatements occur when financial statements contain errors or omissions that may influence stakeholder decisions. Auditors assess three major components of audit risk: inherent risk, control risk, and detection risk.

Inherent Risk

Inherent risk refers to the susceptibility of financial statement assertions to material misstatement before considering internal controls. Complex transactions, management judgement, and estimation uncertainty increase inherent risk.

Examples include:

• Revenue recognition manipulation
• Asset impairment estimation
• Inventory valuation errors
• Fair value measurement uncertainty
• Foreign currency transactions

Companies operating in volatile industries generally experience higher inherent risk.

Control Risk

Control risk refers to the possibility that internal controls fail to prevent or detect material misstatements on a timely basis.

Weak internal controls may arise from:

• Poor segregation of duties
• Ineffective monitoring systems
• Weak governance structures
• Lack of internal audit functions
• Inadequate cybersecurity controls

If internal controls are ineffective, auditors must perform more substantive testing.

Detection Risk

Detection risk refers to the risk that audit procedures fail to identify existing material misstatements.

Detection risk may occur because:

• Audit sampling is insufficient
• Audit procedures are poorly designed
• Auditors fail to exercise professional scepticism
• Complex fraud schemes remain hidden

Auditors reduce detection risk by increasing audit testing, gathering sufficient appropriate evidence, and applying professional judgement.

The relationship between inherent risk, control risk, and detection risk forms the basis of audit risk assessment and determines the nature, timing, and extent of audit procedures.

3. Part 2 – Sustainability Assurance and ESG Reporting

3.1 Importance of Mandatory ESG Reporting

Mandatory ESG reporting has become increasingly important in Australia due to growing stakeholder demand for transparency regarding environmental, social, and governance performance.

Mandatory ESG reporting enhances transparency because companies are required to disclose sustainability-related risks, carbon emissions, governance practices, and climate-related financial impacts.

It also improves accountability by encouraging organisations to adopt responsible business practices and comply with sustainability regulations.

From an investor perspective, ESG disclosures improve decision usefulness because stakeholders can better assess long-term risks, ethical practices, and sustainability performance.

Mandatory ESG assurance further increases confidence in sustainability information by providing independent verification of ESG disclosures.

If the allocated company publishes sustainability reports, climate disclosures, or ESG reports aligned with Australian requirements or international frameworks such as ISSB or GRI standards, the company may be considered compliant with emerging ESG obligations.

3.2 Challenges and Limitations of ESG Reporting

Although ESG reporting offers significant benefits, several challenges and limitations remain.

Measurement Uncertainty

Many ESG metrics rely on estimates and assumptions, particularly climate-related risks and carbon emissions calculations. This creates uncertainty and reduces comparability.

Greenwashing

Companies may exaggerate sustainability achievements or selectively disclose positive information while omitting negative impacts. This reduces stakeholder trust.

Lack of Standardisation

Differences between ESG reporting frameworks may create inconsistency and confusion among stakeholders.

Auditability Challenges

Non-financial information is often difficult to verify due to lack of supporting evidence, limited internal controls, and subjective measurements.

These challenges increase assurance complexity and require auditors to apply significant professional judgement.

3.3 Implications for the Auditing Profession

Mandatory ESG reporting significantly affects the auditing profession.

Audit Evidence

Auditors must obtain sufficient appropriate evidence relating to non-financial ESG disclosures. This may involve reviewing sustainability metrics, environmental data, and governance policies.

Professional Judgement

Auditors must apply professional judgement when evaluating ESG estimates, climate assumptions, and management disclosures.

Assurance Levels

ESG assurance engagements may involve either limited assurance or reasonable assurance.

• Limited assurance provides moderate confidence.
• Reasonable assurance provides a higher level of confidence similar to financial statement audits.

Expansion of Auditor’s Role

Auditors increasingly require knowledge of sustainability reporting frameworks, environmental science, and climate risk analysis.

As a result, the auditing profession is expanding beyond traditional financial reporting assurance.

3.4 ESG Reporting and the Audit Expectation Gap

The audit expectation gap refers to differences between public expectations and actual auditor responsibilities.

Mandatory ESG reporting may reduce the expectation gap because stakeholders receive more transparent and independently assured sustainability information.

However, ESG reporting may also widen the expectation gap because users may incorrectly assume auditors guarantee complete accuracy of all sustainability disclosures.

Since ESG reporting often involves estimation uncertainty and subjective information, misunderstandings regarding assurance levels may continue to exist.

Therefore, clear communication regarding auditor responsibilities and assurance limitations is necessary to minimise unrealistic stakeholder expectations.

4. Conclusion

This report evaluated the allocated company from the perspective of external auditors. The report identified key business characteristics, strategic objectives, and industry-related risks impacting audit planning and financial reporting.

The report also examined inherent risk, control risk, and detection risk as major components of audit risk assessment.

In addition, the report critically evaluated mandatory ESG reporting and sustainability assurance requirements in Australia. ESG reporting improves transparency, accountability, and stakeholder confidence; however, challenges such as greenwashing, measurement uncertainty, and auditability remain significant concerns.

Mandatory ESG assurance is transforming the auditing profession by expanding auditor responsibilities and increasing the need for professional judgement and specialised expertise.

Overall, effective auditing and sustainability assurance contribute significantly to corporate governance, investor confidence, and reliable reporting practices.

5. References

1. Australian Accounting Standards Board (AASB) 2024, Climate-related Financial Disclosures, viewed 8 May 2026, https://www.aasb.gov.au.
2. Arens, A, Elder, R & Mark, B 2022, Auditing and Assurance Services, 18th edn, Pearson Education, Australia.
3. International Auditing and Assurance Standards Board (IAASB) 2023, International Standards on Auditing, viewed 8 May 2026, https://www.iaasb.org.
4. ASIC 2024, Sustainability Reporting Requirements in Australia, viewed 8 May 2026, https://asic.gov.au.
5. [Insert Company Name] Annual Report 2024/2025, viewed 8 May 2026, .

6. Appendices

Appendix A – Company Financial Summary

[Insert charts, revenue tables, financial ratios]

Appendix B – ESG Reporting Frameworks

[Insert ESG framework comparison tables]

Appendix C – Audit Risk Assessment Table