Auditing and Assurance
Research Assignment - Major Audit Risk Areas
Your Mission
FBU
Fletcher Building Ltd
Materials
Your selected company from the ASX200 is
Code
Company
Secto
FBU
Fletcher Building Ltd
Materials
Fletcher Building Limited is a New Zealand-based public listed company, deriving revenue from the manufacture and distribution of building products, and the provision of construction services. The company employs over 16,000 people, operates in New Zealand, Australia and the South Pacific, and is administered from its head office in Auckland
I DO NOT want you to discuss the theory of audit risk (inherent risk, control risk and detection risk)
You will identify the major audit risk areas (at least 2) for your selected company.
12
For each audit risk, your assignment should:
•
explain the potential impact of the audit risk on the company’s financial statements and
•
detail the auditing procedures to verify the account balances impacted by the risk
Note: While you can do background research etc. you shouldn’t start writing this assignment until after week 3. By this time you should have a better understanding of what auditing is based on what you have learnt from the lectures and text (and other) reading
esearch.
In doing this assignment you should use the concepts you have learnt from this subject and your own research.
Important: you are the independent or external auditors of the company and your ‘job’ is to express an opinion on the truth and fairness of the accounts.
Some business risks are material and relevant to the external audit but others e.g. shoplifting in a retail environment whilst important (to the business) would not be material from an external audit perspective.
Remember to link the risks back to the account balances you are expressing an opinion on.
Full details including assignment length (12 pages) is on the unit’s Moodle site.
For the assignment please assure a thorough edit and spell check using English (Australian). Minor e
ors, typographical mistakes and poor spelling detract from the quality of any report will be penalized.
Structure and citation of sourced work with references are to comply with scholarly conventions. Harvard system is prefe
ed.
Research not just restating theory
Note: The assignment involves a great deal of research and requires you to demonstrate a high level of the associated research skills.
Students are expected to conduct extensive research in completing this assignment and to clearly display the results of their research in the presentation of their paper.
Students should not just restate theory from auditing textbooks.
Instructions / Rules
1. The report should have appropriate headings and subheadings.
2. In your report include references to other websites and articles.
3. Ensure you have an appropriate Executive Summary.
4. This work should be in one document such as Microsoft Word. This assignment should be typed using Times New Roman font size 12, single spacing with appropriate headings and attention to spelling and grammar. The report should not exceed fifteen (12) pages (excluding the list of references).
5. You should read additional material which should be included your sources in a list of references at the end of your assignment.
· Normal University referencing rules apply.
· Students should use the Harvard (Author-Date) Style because it is the common style used in the Auditing and Professional Practice discipline.
6. You are able to use any e.g. graphics you want. Feel free to be creative.
7. Whilst the assignment should follow academic standards in relation to non-plagiarism, recognition of sources etc.; the report presented should be of a professional (business) standard in terms of content and layout. It should include:
· A Table of Contents
· An Executive Summary
· Appropriate use of headings, sub headings etc.
· Single spacing and no ‘widows and orphans’ (paragraphs that go over a page)
Please find the following 2 figures as a guide to create your own table of contents
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