Assessment item 2back to topCase A - ReportValue:15%Due Date:19-Aug-2018Return Date:07-Sep-2018Length:2000 wordsSubmission method options:Alternative submission methodTaskback to topBackground:You a member of the audit team at Miller Yates Howarth (MYH), an accounting firm with offices throughout the major regional centres of NSW and Queensland. Although a medium sized firm by national standards, MYH is the second largest regional accounting firm in Australia. Most of MYH’s audit clients are in the agriculture, mining, manufacturing and property industries. All those industries are currently under pressure, either from a downturn in commodity prices or fierce competition from overseas competitors. MYH have now been appointed auditors of a community bank. Two audit directors have previous experience auditing in the banking sector and need to raise the awareness of staff with respect to the governance issues that have recently impacted the banking sector.Question 1 (7%)Required:You have been asked to:read audit standard ASA315 focusing on audit responsibility with respect to client governance,read the web page on the ASIC report on the Commonwealth bank which details the governance issues raised by ASIC (http://www.apra.gov.au/MediaReleases/Pages/18_17.aspx), andprepare a report that:summarises and justifies the auditor’s responsibility to review the governance of an audit client, andIncludes a table for use in the audit which explains the impact of each of the ASIC identified Commonwealth Bank governance issues on audit risk. The table should further explain why each of the ASIC recommendations would reduce audit risk. The template below should be used.IssueImpact on raising audit riskRecommendationReduction in audit risk because of the recommendationQuestion 2(3%)David Little is a senor working at MYH and is part of a 3-person team working on a client’s material loan application that needs to be finished and delivered to the partner on Monday morning. The team are working all weekend to get it finished. There is a strong incentive for the team members, as a well prepared and successful application will ensure that this major client is retained within the firm and raise the standing of the team members in the firm. On Sunday morning, one of the team, John, calls in sick. The rest of the team work harder and get the job done. When David get home exhausted on Sunday night, his flatmate says, “I saw John and his girlfriend at that new restaurant in town today, I thought he was working in your team.”What should David do? David doesn't think that it is fair if John gets the same kudos as the rest of the team when he did not put in the same amount of effort but he is David's friend. David and John play on the same touch football team and often spend time with each other after work and at weekends. Should David tell the partner or are there other options?Required:Outline the ethical issues and your decision using the American Accounting Association decision model. Use the following template to guide your answer:American Accounting Association ModelDecision making process1. Determine the factsThe facts are ...2. Define the ethical issues3. Identify the major principles, rules and values4. Specify the alternatives5. Compare values and alternatives6. Assess the consequences7. Make your decisionQuestion 3 (3%)Required:Explain the role that incorporation of auditors and a statutory cap on auditors’ liability have on the limitation of auditors’ liability.Rationaleback to topThis assessment task will work towards assessing the following learning outcome/s:be able to explain and critically evaluate influences on audit and assurance services including: Australian and international professional standards, statutory and common laws, regulatory bodies, and public expectations within a global market.be able to exercise critical and reflective judgement and appreciate the value of ethical practice.Marking criteria and standardsback to topCriteriaHigh DistinctionDistinctionCreditPassExplanation and critical evaluation of the influence of Australian and international professional standards, public expectations and regulatory bodies on audit and assurance services. (7 marks)Provides a comprehensive synthesis and critical evaluation of the APRA findings and their impact on audit risk.Provides an advanced synthesis and critical evaluation of the APRA findings and their impact on audit risk.Provides a competent synthesis and critical evaluation of the APRA findings and their impact on audit risk.Provides a simple listing of the APRA recommendations with some recognition of the impact on audit risk.Use of critical and reflective judgment in ethical practice in the application of the ethical decisionguide (3 marks).Complex and detailed application of the ethical decision guide demonstrating strong critical and reflective thinking the use of the guide.Logical application of the ethical decision guide demonstrating coherent critical and reflective thinking in the use of the guide.Substantial application of the ethical decision guide demonstrating criticalor reflective thinking in the useof the guide. .Ethical decision guide applied demonstratingbasic thinking inthe use of the guide.Critical explanation of the influence of public expectations and regulatory bodies on audit and assurance services (3 marks)Provides a comprehensive synthesis and critical evaluation of the role that incorporation and statutory cap on auditors' liability have on the limitation of auditors' liability.Provides an advanced synthesis and critical evaluation of the role that incorporation and statutory cap on auditors' liability have on the limitation of auditors' liability.Provides a competent synthesis and critical evaluation of the role that incorporation and statutory cap on auditors' liability have on the limitation of auditors' liability.Provides a basic critical evaluation of the role that incorporation and statutory cap on auditors' liability have on the limitation of auditors' liability.These last two criteria relate to the whole of the case study.Professional communication including the use of a report structure for Question 1.(Note: you are required to space between paragraphs; use Arial 10pt or TNR 12 pt; use 1.5 or double line spacing)(1 mark).Question 1 is in a report format and contains distinct understandable statements with no errors. There is a sophisticated use of language.Extremely well organised.Content is structured in a manner that facilitates the reader’s understanding.Question 1 is in a report format and contains distinct understandable statements with minimal errors.Answer is well organised.Content is structured in a manner that facilitates the reader’s understanding.Question 1 is in a report format. There are minor spelling, grammar and punctuation errors. Work shows evidence of proofreading.Well-structured with one main idea or argument provided per paragraph.Some spelling, grammar and punctuation errors found but the work is readable and structured. Some attempt at a business report format.Work may includetoo many ideas in oneparagraph.Appropriate resources and correct referencing.(1 mark)Usedthree or more sources.All work has been referenced correctly as per APA (6th edn) requirements.Used two or more sources.All work has been referenced correctly as per APA (6th edn) requirements.Used one or more sources.All work has been referenced within the body of the answer and in the reference list, with some omissions or errors in terms.No additional sources other than the text used. Others’ work is not always acknowledged and there are several errors or items of non-compliance with the APA (6th edn).

Assessment item 2 back to top Case A - Report Value: 15% Due Date: 19-Aug-2018 Return Date: 07-Sep-2018 Length: 2000 words Submission method options: Alternative submission method Task back to top...

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Assessment item 2

Case A - Report

Value:15%Due Date:19-Aug-2018Return Date:07-Sep-2018Length:2000 wordsSubmission method options:Alternative submission method

Task

Background:

You a member of the audit team at Miller Yates Howarth (MYH), an accounting firm with offices throughout the major regional centres of NSW and Queensland. Although a medium sized firm by national standards, MYH is the second largest regional accounting firm in Australia. Most of MYH’s audit clients are in the agriculture, mining, manufacturing and property industries. All those industries are currently under pressure, either from a downturn in commodity prices or fierce competition from overseas competitors. MYH have now been appointed auditors of a community bank. Two audit directors have previous experience auditing in the banking sector and need to raise the awareness of staff with respect to the governance issues that have recently impacted the banking sector.

Question 1 (7%)

Required:

You have been asked to:

read audit standard ASA315 focusing on audit responsibility with respect to client governance,
read the web page on the ASIC report on the Commonwealth bank which details the governance issues raised by ASIC (http://www.apra.gov.au/MediaReleases/Pages/18_17.aspx), and
prepare a report that:
- summarises and justifies the auditor’s responsibility to review the governance of an audit client, and
- Includes a table for use in the audit which explains the impact of each of the ASIC identified Commonwealth Bank governance issues on audit risk. The table should further explain why each of the ASIC recommendations would reduce audit risk. The template below should be used.

Issue	Impact on raising audit risk	Recommendation	Reduction in audit risk because of the recommendation

Question 2(3%)

David Little is a senor working at MYH and is part of a 3-person team working on a client’s material loan application that needs to be finished and delivered to the partner on Monday morning. The team are working all weekend to get it finished. There is a strong incentive for the team members, as a well prepared and successful application will ensure that this major client is retained within the firm and raise the standing of the team members in the firm. On Sunday morning, one of the team, John, calls in sick. The rest of the team work harder and get the job done. When David get home exhausted on Sunday night, his flatmate says, “I saw John and his girlfriend at that new restaurant in town today, I thought he was working in your team.”

What should David do? David doesn't think that it is fair if John gets the same kudos as the rest of the team when he did not put in the same amount of effort but he is David's friend. David and John play on the same touch football team and often spend time with each other after work and at weekends. Should David tell the partner or are there other options?

Required:

Outline the ethical issues and your decision using the American Accounting Association decision model. Use the following template to guide your answer:

American Accounting Association Model	Decision making process
1. Determine the facts	The facts are ...
2. Define the ethical issues
3. Identify the major principles, rules and values
4. Specify the alternatives
5. Compare values and alternatives
6. Assess the consequences
7. Make your decision

Question 3 (3%)

Required:

Explain the role that incorporation of auditors and a statutory cap on auditors’ liability have on the limitation of auditors’ liability.

Rationale

This assessment task will work towards assessing the following learning outcome/s:

be able to explain and critically evaluate influences on audit and assurance services including: Australian and international professional standards, statutory and common laws, regulatory bodies, and public expectations within a global market.
be able to exercise critical and reflective judgement and appreciate the value of ethical practice.

Marking criteria and standards

Criteria	High Distinction	Distinction	Credit	Pass
Explanation and critical evaluation of the influence of Australian and international professional standards, public expectations and regulatory bodies on audit and assurance services. (7 marks)	Provides a comprehensive synthesis and critical evaluation of the APRA findings and their impact on audit risk.	Provides an advanced synthesis and critical evaluation of the APRA findings and their impact on audit risk.	Provides a competent synthesis and critical evaluation of the APRA findings and their impact on audit risk.	Provides a simple listing of the APRA recommendations with some recognition of the impact on audit risk.
Use of critical and reflective judgment in ethical practice in the application of the ethical decisionguide (3 marks).	Complex and detailed application of the ethical decision guide demonstrating strong critical and reflective thinking the use of the guide.	Logical application of the ethical decision guide demonstrating coherent critical and reflective thinking in the use of the guide.	Substantial application of the ethical decision guide demonstrating criticalor reflective thinking in the useof the guide. .	Ethical decision guide applied demonstratingbasic thinking inthe use of the guide.
Critical explanation of the influence of public expectations and regulatory bodies on audit and assurance services (3 marks)	Provides a comprehensive synthesis and critical evaluation of the role that incorporation and statutory cap on auditors' liability have on the limitation of auditors' liability.	Provides an advanced synthesis and critical evaluation of the role that incorporation and statutory cap on auditors' liability have on the limitation of auditors' liability.	Provides a competent synthesis and critical evaluation of the role that incorporation and statutory cap on auditors' liability have on the limitation of auditors' liability.	Provides a basic critical evaluation of the role that incorporation and statutory cap on auditors' liability have on the limitation of auditors' liability.
These last two criteria relate to the whole of the case study. Professional communication including the use of a report structure for Question 1. (Note: you are required to space between paragraphs; use Arial 10pt or TNR 12 pt; use 1.5 or double line spacing) (1 mark).	Question 1 is in a report format and contains distinct understandable statements with no errors. There is a sophisticated use of language. Extremely well organised. Content is structured in a manner that facilitates the reader’s understanding.	Question 1 is in a report format and contains distinct understandable statements with minimal errors. Answer is well organised. Content is structured in a manner that facilitates the reader’s understanding.	Question 1 is in a report format. There are minor spelling, grammar and punctuation errors. Work shows evidence of proofreading. Well-structured with one main idea or argument provided per paragraph.	Some spelling, grammar and punctuation errors found but the work is readable and structured. Some attempt at a business report format. Work may include too many ideas in one paragraph.
Appropriate resources and correct referencing. (1 mark)	Usedthree or more sources. All work has been referenced correctly as per APA (6th edn) requirements.	Used two or more sources. All work has been referenced correctly as per APA (6th edn) requirements.	Used one or more sources. All work has been referenced within the body of the answer and in the reference list, with some omissions or errors in terms.	No additional sources other than the text used. Others’ work is not always acknowledged and there are several errors or items of non-compliance with the APA (6th edn).

Answered Same Day Aug 20, 2020 ACC568 Charles Sturt University

Solution

Pulkit answered on Aug 21 2020

142 Votes

SOLUTION.PDF

Assessment item 2 back to top Case A - Report Value: 15% Due Date: 19-Aug-2018 Return Date: 07-Sep-2018 Length: 2000 words Submission method options: Alternative submission method Task back to top...