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HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION
Group Assessment Details and Submission Guidelines
Trimester T1 2020
Unit Code HI6026
Unit Title Audit, Assurance and Compliance
Assessment Type Group Assignment
Assessment Title Demand for Corporate Governance and Audit Committee
Purpose of the Students are required to research the factors which create the demand for assurance
assessment (with ULO and consider the benefits of assurance for key stakeholders, including those employed
Mapping) by the client company as well as the general public at large.
Learning Outcomes:
1. Demonstrate an understanding of the reporting requirements of auditing standards
(ULO 1)
2. Identify the elements of the financial report audit process (ULO 3)
3. Understand the audit planning procedures, evaluate the business risk and assess the
internal control (ULO 4)
Weight 40% of the total assessments
Total Marks 40
Word limit Maximum 3,000 words
Due Date Week 10
Submission Guidelines • All work must be submitted on Blackboard by the due date along with a completed
Assignment Cover Page.
• The assignment must be in MS Word format, single spacing, 12-pt Arial font and 2cm
margins on all four sides of your page with appropriate section headings and page
numbers.
• Reference sources must be cited in the text of the report, and listed appropriately at
the end in a reference list using Harvard referencing style.
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Assignment Specifications
Purpose
This assignment aims to enhance students’ critical thinking skills and higher order application abilities by
esearching what the key factors are which create the Demand for Corporate Governance and Audit
Committee. Students will also need to consider the benefits of assurance services to key stakeholders including:
Shareholders, Directors, Creditors, Suppliers, Customers, Regulators and potential investors.
The assignment structure must be as follows:
1. Holmes Institute Assignment Cover Sheet – Full Name, Student No., Campus, Session No.
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, and once you have an overview of the
whole text.
• The Executive Summary appears on the first page of the report.
3. 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.
4. Introduction – A short paragraph which includes background, scope and the main points raised in order of
importance. There should be a
ief conclusion statement at the end of the Introduction.
5. Main Body Paragraphs - with numbered sub-headings – Detailed information which 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.
6. Conclusion – A logical and coherent evaluation based on a thorough and an objective assessment of the
esearch performed.
7. Appendices – Include any additional explanatory information which is supplementary and/ or graphical to
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.)
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Assignment Topic – The Demand for Corporate Governance and Audit Committee.
(a) “Audit committees do not prepare financial reports, nor do they conduct audits. But they have an
essential role to play in ensuring the integrity and transparency of corporate reporting” – explain what
is the role of an audit committee in ensuring the integrity and transparency of corporate reporting? Is
an audit committee mandatory in Australia? (9)
(b) What do the ASX Corporate Governance Principles say about having an internal audit function? (5)
(c) Baxby Fashion Ltd is a long-established Australian company, based in Brisbane that manufactures
office cloths. Started in 1995 as a family-owned business, it expanded rapidly with
anches around
Australia and was listed on the Australian Securities Exchange (ASX) in 2000. The governance structure
of Baxby Fashion includes seven directors, four of whom are executive directors and three of whom
are non-executive directors. The four executive directors are Sue Be
y (CEO), Gordon Dawn (CFO),
Neal Arthur (marketing director) and Blube
y Richard (chief information officer). The three non-
executive directors are Rogers Bu
it (who joined the board in 2013 as the independent chair), Lucy
Brian (a widely recognised furniture designer) and Tully McDonald (a solicitor who has been on the
oard since Baxby Fashion was listed). The Baxby Fashion board has three subcommittees:
emuneration, nomination and audit. The audit committee consists of Tully McDonald (chair), Blube
y
Richard and Lucy Brian. Provide three compliance concerns with the cu
ent structure of the audit
committee, according to the ASX’s Corporate Governance Principles and Recommendations. Explain
your answers. (10)
(d) From 2014, Baxby Fashion Ltd to provide high-quality fashion products based on the latest trends at
easonable prices. At the June 2018 board meeting, Tully McDonald, who is cu
ently the chair,
advised the rest of the board that he had just signed an agreement to set up and run fashion-watch
kiosks in large department stores, in a major venture with Colette Hayman Handbags, a fashion
handbag manufacturer. The board was stunned that this was the first that they had heard of the
venture, and the CFO, Gordon Dawn, expressed concern that they had no experience of this type of
operation and that they knew nothing about Colette Hayman Handbags. However, Edward said that it
was a ‘done deal’ and that he was confident of its success. He said he was very impressed with Mark
Hayman from Colette Handbags, with whom he had held several meetings to discuss the project, and
that he expected future sales arising from the venture to be significant. Identify two key ASX
Corporate Governance Council principles that have been
eached and explain how Edward has
eached them. (10)
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Resources and Reference Links:
1. Textbook: Gay & Simnett, Auditing & Assurance Services in Australia, 7th Edn, McGraw Hill
Education, 2018
2. https:
www.asx.com.au/documents
egulation/cgc-principles-and-recommendations-fourth-edn.pdf
3. https:
www.iaasb.org/focus-areas/focus-audit-quality
4. https:
www.cpaaustralia.com.au/~/media/corporate/allfiles/document/professional-
esources/auditing-assurance/evolving-roles-of-audit-committees.pdf?la=en
5. https:
asic.gov.au
egulatory-resources/financial-reporting-and-audit/auditors/internal-audit
Group Formation and Assignment Submission
Students are required to work on the assignment in groups of 4 produce a group report.
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 Medium or High, as per safe-assign.
Marking Criteria
Group Assignment Marking Criteria Weighting Marks
Executive Summary 2% 2 marks
Clear description of audit committee’s essential role in ensuring
the integrity and transparency of corporate reporting” and
mandatory rotation of audit committee 9% 9 marks
Clear description of ASX Corporate Governance Principles say
about having an internal audit function. 5% 5 marks
Discuss three compliance concerns of Baxby fashion Ltd. with the
cu
ent structure of the audit committee, according to the
ASX’s CGC Principles and Recommendations 10% 10 marks
Identify two key ASX Corporate Governance Council principles
that have been
eached and explain how Edward has
eached
them. 10% 10 marks
Overall presentation, Punctuation, spelling, grammar, word
choice, academic English expression 2% 2 mark
Co
ect referencing, In-text citation, acknowledgement 2% 2 marks
of sources, consistency
Weight 40% 40 Marks
Total Marks 40 marks
https:
www.asx.com.au/documents
egulation/cgc-principles-and-recommendations-fourth-edn.pdf
https:
www.iaasb.org/focus-areas/focus-audit-quality
https:
www.cpaaustralia.com.au/~/media/corporate/allfiles/document/professional-resources/auditing-assurance/evolving-roles-of-audit-committees.pdf?la=en
https:
www.cpaaustralia.com.au/~/media/corporate/allfiles/document/professional-resources/auditing-assurance/evolving-roles-of-audit-committees.pdf?la=en
https:
asic.gov.au
egulatory-resources/financial-reporting-and-audit/auditors/internal-audit
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Marking Ru
ic
High Distinction
(80-100)
Distinction
(70-79)
Credit
(60-69)
Pass
(50-59)
Fail
(0-49)
Executive Summary
(2 marks)
Very effectively
written synopsis
with clear
communication of
the main points in
a concise
paragraph.
Competently
composed a
strong
synopsis. The main
points are
communicated
well.
Synopsis is well
written with all
the expected
points raised.
Synopsis is clearly
written,
ut it is
ief or
has some
e
ors.
Synopsis is deficient
and poorly written.
Too
ief.
The important role
of audit committee
in Financial
Reporting and
mandatory audit
committee
and Mandatory
effect of audit
committee
(9 marks)
Main points are
logically ordered;
sharp sense of
structuring and
a
angement of key
information.
Supporting details
are specific to the
main points and
adequate facts and
other evidence is
provided and well-
articulated
There is good
points raised.
Paragraphing is
noted, and there
is
sufficient
detail with
effective
supporting
examples and
evidence.
There are valid
points raised,
paragraphing is
noted, and
there are some
examples
provided with
supporting
evidence.
There are valid
points raised,
ut either there
is not enough
description or
examples or