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Auditing & Assurance MAC005 Trimester XXXXXXXXXXASSIGNMENT Objective MAC005 covers a range of important theory and practice of issues in Auditing & Assurance. The main purpose of this assessment is to...

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Auditing & Assurance
MAC005
Trimester XXXXXXXXXXASSIGNMENT
Objective
MAC005 covers a range of important theory and practice of issues in Auditing & Assurance. The main purpose of this assessment is to provide students with the opportunity to extend their understanding and practical application in a key audit skill (Analytical Review Procedures) which are used throughout an audit and in practice have been deemed to be effective in highlighting potential earnings management issues.
The assessment will allow students the opportunity to prepare a “Key Audit Matters” report further enhancing their knowledge by applying the theory learnt to develop a practical document prepared on many audit engagements.
You will acquire a range of excel skills such as writing formulae to perform accounting analytics and summarising your results using pivot tables, graphs and slicers. Those skills will enable you to prepare an accounting analytics dashboard which will enable reviewers to understand your approach, analysis and conclusions.
You will be required to analyse the financial information of ABC Learning over the period XXXXXXXXXXusing Analytical Review techniques such as DuPont Analysis, Common Size, Trend Analysis and the Beneish M-Score models to identify:
· any potential earnings manipulation
· in which accounts and
· for which years.
Once you have completed the analytical procedures you are required to submit a “Key Audit Matters Report” outlining the key material accounts which will require further investigation and the audit approach / procedures / assertions you believe will be appropriate given your analysis.
Students will be required to act as an Audit Senior involved in the Audit of ABC Learning who is completing the Audit Planning and is responsible for the effective Analytical review of the historical financials covering the years XXXXXXXXXX.
The results of your review will need to be summarised for your Audit Manager highlighting areas of concern and recommendations in terms of changes to the Audit Approach.
Section 1.0    Assessment Information
Marking Criteria:    A marking ru
ic will be made available in the Moodle site.
Length:     XXXXXXXXXXwords
Weighting:            25%
Assessment due:        31 July XXXXXXXXXX:00pm (Friday in Week 11)
Type of Collaboration:     Individual Assessment
Style and format:    Submissions will be in the form of a report – specifically a Key Audit Matters Report. This assessment task must be word processed using Arial 11 font, double spaced with margins of 2cm.
    UBSS uses the Harvard method of referencing.
    Common Report Structure Guidelines:
    Proposed Structure
1.0    Introduction
· General statement: a sentence or 2 to orient the reader to the topic, which sets the context for the topic in a
oad way
· The purpose of the report
· The auditing themes that are being explored
· The standards / criteria that are being explored / applied
· The reason why you are conducting this analysis (its significance)
2.0 Ratio Analysis
· What analysis was conducted i.e. summarise the nature and type of Ratio analysis conducted.
· What were your key findings from the ratio analysis
· What are the auditing implications from the ratio analysis
· Are there any other implications
· One main point or key idea per paragraph
· Should link to the key areas of Audit Focus
3.0 Risk Assessment and Areas of Audit Focus
· This section summarises your risk assessment for each area of audit focus by identifying the account / area that is at risk, your assessment as to why it is at risk (your perspective based on the literature reviewed and ratio analysis conducted) and the audit work that is planned. It emphasises your JUDGEMENT.
· This section can be provided in tabular form as suggested below:
    Areas of audit Focus (Account / Area)
    Your Perspective (Why)
    Audit Work to be performed (Approach & Assertions covered)
    
    
    
4.0    Conclusion
· Summarises the main points or arguments
· Restates the major point of view (your answer to the question)
· Includes no new information
· Should not need references
Appendices (These are optional and can include any additional findings / materials that you believe are relevant)
References (Harvard Anglia compliant, if required)
Guidelines
· You may find it useful to use the above structure as a starting point, however it is not mandatory
· Answer the question directly
· Develop an argument logically and coherently
· Ensure all your arguments are based on sound evidence
· Essay illustrates wide reading and a good understanding of the topic
· Ensure all your arguments are concise and clea
· Please refer to the attached RUBRIC (refer section 3) to self-assess how well your essay demonstrates the attributes of the targeted outcomes.
Assessment Submission:    This assessment has been set up to be checked by Turnitin, a tool which helps you check whether you have reference co
ectly.
You can submit your assessment report to Turnitin prior to the due date and Turnitin will be you an originality report.
You may then make any changes that may be required and resubmit your final version by the due date.
IMPORTANT
Also the EXCEL SPREADSHEET with all relevant analytical review procedures conducted must be submitted via MOODLE (not Turnitin).
Please only fill in the ORANGE CELLS with the co
ect EXCEL FORMULA (numbers alone will not be accepted).
This will form 50% of your “Analysis” mark which is weighted at 30% (refer Ru
ic Section 3)
Section 2.0    Other Important Information
2.1     Plagiarism
Taking another person’s ideas, words or inventions and presenting them as your own without acknowledging your sources (citing or referencing), is plagiarism. Paraphrasing or rewording another person’s work, without acknowledging its source, is also plagiarism. If you are identified with plagiarism assessment mark will be zero.
2.2    Referencing
Co
ect referencing is important for two main reasons. The first is to enable the reader to access source material you have relied upon, should they care to. The other is to ensure that you have properly recognized the contribution of the work of others to your assignment. If you do not do this properly, you are engaging in plagiarism—the theft, intentional or otherwise, of the intellectual or creative work of others.
UBSS will not tolerate plagiarism. It is therefore important that you understand how to avoid it. It is important that you adopt a consistent, and adequate, referencing system. Reference system to be used Harvard Anglia.
Section 3.    Analysis Ru
ic (100 marks reduced to 25)
    Criteria
    HD (100%)
    HD (>85%)
    Distinction (75-84%)
    Credit (65-74%)
    Pass (50-64%)
    Fail (40-50%)
    Fail (<40%)
    Knowledge (25%)
    Demonstrated SOPHISTICATED knowledge and understanding.
    Demonstrated COMPREHENSIVE knowledge and understanding.
    Demonstrated a DETAILED and REASONED level of knowledge and understanding.
    Demonstrated SOME level of knowledge and understanding.
    Demonstrated a LIMITED but RELEVANT level of knowledge and understanding.
    Demonstrated a GENERAL level of knowledge and understanding.
    Lacked any real knowledge or understanding.
    Judgement (25%)
    Presented a SOPHISTICATED and CRITICAL judgement with relevant supporting information which identified the judgement as ground-
eaking.
    Presented a COMPREHENSIVE judgement with relevant supporting information.
    Attempted to present a reasoned judgement with relevant supporting information.
    Provided some relevant judgement with supporting information.
    Provided limited judgement with some relevant information.
    Provided some basic information.
    Did not provide any basic or relevant information.
    Analysis (30%)
    SOPHISTICATED /CRITICAL analysis of each of the key issues identified (re Earnings Management) and impacts on audit strategy.
    COMPREHENSIVE discussion of each of the key issues identified (re Earnings Management) and impacts on audit strategy.
    Provided detailed and reasoned discussion of each of the key issues identified (re Earnings Management) and impacts on audit strategy.
    Provided some detailed discussion
on each of the key issues identified (re Earnings Management) and impacts on audit strategy.
    Simple discussion of each of the key issues identified (re Earnings Management) and impacts on audit strategy.
    Poor Evaluation or analysis.
Significant gaps in the analysis and lack of understanding of the issues.
    Little or no evaluation or analysis.
    Terminology (5%)
    Excellent use of specific and relevant terminology used throughout which was well integrated into the response
    Applied specific and relevant terminology which was integrated in the response
    Applied mostly accurate and relevant terminology
    Used some relevant and appropriate terminology
    Limited use of relevant terminology
    Used little or inaccurate terminology
    Used no relevant and inaccurate terminology
    Response (15%)
    Presented a sophisticated, logical and insightful response. Outstanding closing statement.
    Presented a sustained, logical and well-structured response. Conclusion intrinsically linked to all elements of the analysis conducted and provides a sophisticated closing statement.
    Presented a logical and structured response applying the Analysis structure points.
    Presented a logical response utilising some of the Analysis structure points. Conclusion linked to the analysis conducted.
    Presented a generalised and limited response. Conclusion somewhat linked to the analysis conducted.
    Presented an underdeveloped response
    Presented an underdeveloped and incoherent response
Section 4.    Selection of References
1. http:
www.smh.com.au
usiness/lessons-to-be-learnt-from-abc-learnings-collapse XXXXXXXXXX78f8.html
2. http:
www.smh.com.au
usiness/numbers-finally-start-to-add-up-as-operators-go-back-to-basics XXXXXXXXXX19zy6.html
3. https:
www.slideshare.net
ustamzalaldinov/abc-learningannualreport2007
4. http:
governanceforstakeholders.com/2012/12/28/the-abc-of-a-corporate-collapse
5. http:
www.abc.net.au/news/ XXXXXXXXXX/fast-eddy-leaves-abc-learning-investors-reeling/490536

Auditing & Assurance

MAC005

T
i
m
es
t
e
2

2
0
20

ASSIGNMENT
Objective

MAC005

covers a range of important theory and practice of
issues in Auditing & Assurance.
The
main purpose of this
assessment

is to provide students with the opportunity to
extend their
understanding and practical application in a key audit skill (Analytical Review Procedures) which
are used throughout an audit and in practice have been deemed
to be effective in highlighting
potential earnings management issues.

The assessment will allow students the opportunity to prepare a “Key Audit Matters” report further
enhancing their knowledge by applying the theory learnt to develop a practical document

prepared on many audit engagements.

You will acquire a range of excel skills such as writing formulae to perform accounting analytics
and summarising your results using pivot tables, graphs and slicers. Those skills will enable you
to prepare an
accountin
g analytics
dashboard which will enable reviewers to understand your
approach, analysis and conclusions.
You will be required to analyse the financial information of ABC Learning over the period 2000
-

2007 using Analytical Review techniques such as
DuPon
t Analysis, Common Size, Trend
Analysis and the Beneish M
-
Sco
e models

to identify:

·

an
y potential earnings manipulation
·

in which accounts and
·

for which
years
.

Once you have

completed the analytical procedures you are required to
submit
a “
Key Audit
Matters Report


outlining the key material accounts which will require further investigation and
the audit approach

procedures

assertions

you believe will be appropriate given your analysis.
Students will be required to act as an Audit Senior involved

in the Audit of ABC Learning who is
completing the Audit Planning and is responsible for the effective Analytical review of the
historical financials covering the years 2000
-

2007.
The results of your review will need to be summarised for your Audit Man
ager highlighting areas
of concern and recommendations
Answered Same Day Jul 05, 2021

Solution

Yash answered on Jul 17 2021
136 Votes
Presentation
MAC005 covers a scope of significant hypothesis and practice of issues in Reviewing and Confirmation. The principle motivation behind this evaluation is to give understudies the chance to expand their understanding and down to earth application in a key review aptitude (Diagnostic Survey Methods) which are utilized all through a review and by and by have been regarded to be viable in featuring potential profit the board issues.
The evaluation will offer us the chance to set up a "Key Review Matters" report further improving their insight by applying the hypothesis figured out how to build up a down to earth archive a
anged on many review commitment.
The basic role of considerable systematic strategies is to get confirmation, in blend with other review testing, (for example, trial of controls and meaningful trial of subtleties), as for budget summary attestations for at least one review te
itories. Meaningful systematic methods are commonly increasingly pertinent to enormous volumes of exchanges that will in general be progressively unsurprising after some time.
The utilization of meaningful expository methodology depends on the desire that connections among information exist and proceed without known conditions in actuality. The nearness of these connections gives review proof regarding the fulfillment, exactness and event of exchanges. Because of their inclination, considerable diagnostic methods can frequently give proof to numerous statements, distinguish review gives that may not be clear from increasingly nitty gritty work, and guide the evaluator's focus toward regions requiring further examination. Moreover, the reviewer may recognize dangers or inadequacies in inner control that had not recently been distinguished, which may make the examiner rethink his a
anged review approach and require the inspector to acquire more confirmation from other meaningful testing than initially a
anged.
Proportion Examination
Proportion investigation has developed as the standard procedure of examination of budget summaries. It is an endeavor to the present the data of the fiscal summaries in disentangled, a
anged and summed up from by setting up the quantitative relationship of the thing or gathering of things of budget reports. The examination of the fiscal reports and understandings of monetary aftereffects of a specific time of tasks with the assistance of 'Proportion' is named as "Proportion Investigation".
The five (5) significant classifications in the budgetary proportions list incorporate the accompanying :
•    Liquidity Proportions.
•    Activity Proportions.
•    Debt Proportions.
•    Profitability Proportions.
•    Market Proportions.
The Du Pont Model was made in the mid 1900s however is as yet a model substantial to use for evaluation of the gainfulness. Utilizing the Du Pont Model for hazard examination isn't extremely normal however in the event that you as a hazard investigation expert need to talk the language of the business, it tends to be important to you. Before talking about the mechanics and value of Du Pont, it might be of some enthusiasm to find out about its turn of events. The development of the Du Pont Model equals the advancement made in the field of money related examination itself. Three unmistakable forms of Du Pont have been made and used to help disentangle the basic drivers of benefit and return after some time, starting about 90 years back.
The model was made by F. Donaldson Earthy colored who thought of the model when he was relegated to tidy up the funds All in all Engines and has since the time been an significant model for budgetary investigation. Surprisingly it has not been utilized in the security network for hazard prioritization or effect investigation. The first Du Pont strategy for money related proportion investigation was created in 1918 by a specialist at Du Pont who was accused of understanding the accounts of an organization that Du Pont was procuring. In this strategy for execution estimation that was begun by the Du Pont Organization during the 1920s. With this strategy, resources are estimated at their gross book esteem as opposed to at net book an incentive so as to create a better yield on Value (ROE). It is otherwise called "Du...
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