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Microsoft Word - HA3032 Group Assignment T1 2018.doc 1 | P a g e H A 3 0 3 2 G r o u p A s s i g n m e n t T 1 2 0 1 8 HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HOLMES INSTITUTE...

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Microsoft Word - HA3032 Group Assignment T1 2018.doc
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HOLMES        
INSTITUTE        
        
FACULTY    
OF    HIGHER        
EDUCATION                 
        
HOLMES    INSTITUTE        
        
FACULTY    OF    HIGHER    EDUCATION        
        
                                                                                             Group    Assignment                     
        
HA3032    Auditing        
TRIMESTER    1    /    2018    
            
Instructions:            
1. This    assignment    is    to    be    submitted    in    accordance    with    the    assessment    policy,    as    stated    in    the    Subject    
Outline    and    in    the    Student    Handbook.            
2. It    is    the    responsibility    of    the    student,    who    is    submitting    the    work,    to    ensure    that    the    work    is    in    fact    
he
his     own     work.     Incorporating     another     person’s     work     or     ideas     into     one’s     own     work     without    
appropriate    acknowledgement    is    an    academic    offence.        
3. Students    can    submit    all    assignments    for    plagiarism    checking    (self-check)    on    Blackboard    before    final    
submission     in     the     subject.     For     further     details,     please     refer     to     the     Subject     Outline     and     Student    
Handbook.            
4. Maximum    marks    available:    20    marks.        (Weighting    =    20%)    
5. Due    date    of    submission:    Week    11        
6. Assignment    word    length    =    3,000    words    
7. Please     use     the     “Spelling     &     Grammar”     and     “Word     Count”     functions     and     include     the     actual     no.     of    
words    on    the    front    page    of    the    report.            
8. Important    Note:    Please    submit    the    Assignment    through    SafeAssign        
        
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Format    of    the    Report        
        
1. You    should    at    least    have    the    following    details:        
a. An    Assignment    Cover    Page    clearly    stating    all    of    your    members    names    and    student    numbers    
. Brief    Introduction    or    Overview    of    what    the    report    is    about.        
c. Main    Body    of    the    report    with    sections    to    answer    the    above    sections    and    with    appropriate    section    
headings.    Provide    your    responses    in    a    table    format.        
d.     Conclusion        
e.     List    of    References.        
2. Ensure    all    diagrams    and    tables    are    clearly    labelled    and    explained.        
3. Ensure    all    materials    used    are    co
ectly    referenced.        
4. Use    page    numbers    at    the    bottom    of    each    page    of        the    assignment.    
5. Use     the     co
ect     in-text     referencing,     appropriate     expression,     co
ect     grammar,     spelling     and    
punctuation,    10-12pt    font,    appropriate    word    length    and    normal    margins.    
NOTE>    Plagiarism    will    be    severely    penalised.        
    
                        Learning    Outcomes    
9.1     -     Identify     and     distinguish     between     tests     of     controls,     substantive     tests     of     transactions     and    
substantive    tests    of    balances.    
9.2    -Identify    and    understand    when    the    auditor    will    undertake    substantive    audit    procedures    in    response    
to    specific    assessed    risks    of    material    misstatement.    
9.3    -    Understand    how    assertions    relate    to    account    balances    
9.4    -    Understand    how    to    select    the    most    efficient    and    effective    combination    of    audit    procedures    that    
allows    them    to    achieve    the    audit    objective    
9.5    –    active    participation    in    an    “audit    team    context”    with    professional    group    discussions    
9.6    -    Co-operation    with    fellow    students    to    produce    a    joint    deliverable    on    time    and    to    a    high    standard.    
    
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Group    Assignment    Theme:        
Developing    an    Audit    Program    for    a    selected    listed    Company    
    
The    objective    of    this    group    assignment    is    to    provide    you    with    an    opportunity    to    design    an    audit    program    
for    a    real    world    company    and    focus    on    the    “Substantive    tests    of    balances”,    which    involves    substantiating    
the    ending    balance    of    an    account(s),    which    is    comprised    of    multiple    transactions,    as    at    a    certain    year-end    
date.    
    
    
    Introduction    and    Project    Requirements        
    
1. Students    are    required    to    form    groups    of    three    students    and    inform    their    session    lecturer    of    their    group    
members    by    completing    the    “HA3032    T1    2018    Group    Form    details”.    
    
2. If    you    have    difficulties    forming    such    groups,    please    contact    your    lecturer    asap.    
    
3. Each    group    of    students    will    select,    or    have    selected    for    them,    a    unique    ASX    listed    company    to    use    for    
progressive    analysis    in    this    group    assignment.        
    
4. Final    approval    of    the    company/client    -    any    company    listed    on    the    ASX    and    which    has    not    already    been    
selected    by    another    group    -    is    required    by    your    lecturer.    
    
5. Prepare    a    detailed    audit    program    Report    [Minimum    of    3000    words]    for    the    client/company    in    a    group    
of    3    members.    
    
6. Use    publicly    available    online    resources    for    research    purposes.        
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Detail    Project    Tasks:    Developing    an    Audit    Program    for    a    selected    listed    Company    
    
1. Select    a    listed    company    from    the    cu
ent    ASX    List.    
    
2. Understand    the    nature    of    the    entity    and    its    industry,    including    the    following    items:    
a. Business    operations            
. Investments    and    investment    activities            
c. Financing    and    financing    activities            
d. Financial    reporting    practices            
    
3. Perform    analytical    procedures    of    the    Statement    of    Financial    Position    and    of    Financial    Performance    
over    the    last    three    years    using    appropriate    ratios    and    metrics.    Select    four    key    ratios    and    provide    a    
ief    explanation    in    the    report.    This    can    be    presented    in    a    table    format.    
    
4. Discuss    with    your    group    members    which    account    balances    are    considered    “material”.    Explain    how    
you     calculated     materiality     for     planning     purposes     and     provide     appropriate     justification     for     your    
decision-making.    
(Note    -    Use    a    table    format    to    structure    your    answers    to    questions    5,    6    and    7.)    
    
5. Select    up    to    ten    different    material    account    balances,    at    least    five    assets    and    five    liabilities.    
    
6. For    each    material    account    balance    selected,    list    the    relevant    financial    report    assertions    and    explain    
why    the    selected    assertions    are    applicable    to    each    account.        
    
7. Design    a    comprehensive    set    of    audit    worksteps    for    each    material    account    balance,    which    addresses    
the     selected     assertions     and     which     will     result     in     sufficient     and     appropriate     audit     evidence     being    
collected    for    your    selected    client    company.    (Assume    that    a    predominantly    substantive    approach    is    
eing    adopted)    
    
8. Refer    to    the    following    websites    for    further    information    and    research    processes:    
http:
www.auasb.gov.au/Home, http:
www.asic.gov.au/, www.cpaaustralia.com.au,
http:
www.ifrs.org,     
    
    
    
    
    
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HA3032    –    AUDITING    -        T1    2018    Group    Assignment    Form    Details    
    
Please     complete     this     form    as     soon     as     possible     and    provide    one     copy     only     to     your     lecturer.     You    will    
select    or    be    assigned    a    unique    ASX    listed    company    to    review    for    this    group    assignment.    It    cannot    be    a    
company    which    has    already    been    selected    by    another    group.    
    
Group    No._____    (Note    -    this    will    be    assigned    to    you    by    the    Unit    Convenor)    
         Lecturer    Name___________________________    (T1    2018)          Session    No.________    
Campus    Location_________________________               Date______________    
    
    
Student    Name                             Student    No.    
1. __________________________               ______________________________    
             
Student    Name                             Student    No.    
2. __________________________               ______________________________    
    
Student    Name                             Student    No.    
3. __________________________               ______________________________    
    
Company    Selected_________________________________________________________    
                 
Approved    by    Unit    Co-ordinator_______________________              Date______________    
    
Note     –     All     students     in     the     group,     as     listed     above,     are     required     to     be     active     participants     and     all    
members    agree    to    co-operate    in    the    interests    of    each    other’s    learning    and    educational    development.    
Each    student    has    a    responsibility    to    contribute    equally    to    the    completion    of    the    group    assignment    and    
submit    one    assignment    only     by     the    due    date.     If     your     group    encounters    major    problems    and     issues,    
which    may    prevent    or    delay    completion    of    this    assignment    by    the    due    date,    student(s)    need    to    inform    
their    lecturer    immediately.    
    
Signed____________________________                    Date__________    
Signed____________________________                    Date__________    
Signed____________________________                    Date__________
Answered Same Day May 24, 2020 HA3032

Solution

Pulkit answered on May 29 2020
134 Votes
(

AUDIT PROGRAM REPORT OF ITL HEALTHCARE PTY LTD

Name of the student
:
Student ID:

)
INTRODUCTION
The report presented is about preparing of an audit program of ITL Health Group Limited is a globally recognized medical technology company engaged in the business of supplying the products to healthcare markets and also providing the individual health care solutions and management. The report provided below gives details about the areas which are critical and requires detailed analysis as laid down by the auditor.
TASKS 2-8
1. The following are the details in relation to ITL Health Group Limited:
(a.) Business Operations:
Since its establishment ITL Limited and the Entities under its control have grown from a small privately owned entity engaged in research into a publicly listed company engaged in manufacturing and supplying of products into the Australian and globally recognised healthcare markets. The growth in the ITL’s can be seen through the increase in the sales of the company’s main products supplied in Australia and around the world and also the growth can be witnessed by the purchase of an established operating entity in Australia. The company is now engaged in the business which consists of different types of business operations dealing with varying level of risks and products across the market. The new BioMed established by ITL is a manufacturing plant is successfully implemented and is operating efficiently. Its manufacturing operations are continuously expanding and have engaged in moving its products from Australia to Malaysia. The company is engaged in exploring and pursuing the new business opportunities. Healthcare Australia is also engaged in increasing its sales and ultimately its market share in public hospitals. ITL BioMedical also ca
y a number of research and development projects which work in the direction of providing the new sales opportunities. ITL is also engaged in pursuing organic growth and is continuously working towards the new business opportunities for growth and development. ITL has also acquired MyHealthTest Pty Ltd (“MHT”) which is engaged in directing to consumer pathology testing.
(b.) Investments and investment activities:
The principal activities ca
ied on by ITL Healthcare Group include the following:
• Activities in relation to making and selling and distributing of innovative medical devices
• Activities relating to production, distribution and sale of procedure packs in relation to medical
There are no significant changes in the nature of ITL’s principal activities as stated above. ITL has acquired My Health Test Pty Ltd (“MHT”) which is engaged in direct to consumer pathology testing. The ITL Group has also got two business units operating in different regions with diversified products in order to take advantage of the different market conditions prevailing. The main aim of each business unit is to work for the future growth of the company as a whole on the basis of the available infrastructures and resources.
(c.) Financing and financing activities:
ITL healthcare group has undertaken the buyback of its ordinary shares trading in the market. ITL Asia Pacific bank has given bank overdraft facility, bankers’ acceptances and other finance facilities including a bank guarantee provided to a third party. These facilities are secured by the legal charges over the company’s factory in Malaysia, charges over the assets of the company and parent entity corporate guarantees. ITL Healthcare Pty Ltd has been provided overdraft facility and other finance facilities from Commonwealth Bank of Australia. These facilities are secured by way of guarantees and debenture charges
(d.) Financial reporting practices:
The financial statements prepared by the company are basically the general purpose financial statements prepared in accordance with Australian Accounting Standards, other requirements and amendments as laid down by the Australian Accounting Standards Board and the Corporations Act 2001. The financial statements prepared present that the company is in operation for the purpose of making profits from the business ca
ied by the entity. The accrual basis of accounting is used in preparing the financial statements and historical costs basis are used where applicable. The financial statements are prepared in such a manner in order to provide a true as well as fair and faithful view of the business operations ca
ied by the entity and its subsidiaries as a whole.
2. The following table shows the results of the analytical review of the financial statements of ITL Healthcare Pty Ltd on the basis of the ratios calculated for the financial years 2017, 2016, 2015:
    Sr. no.
    Event
    Explanations
    1.
    Net profit margin %
    The net profit margin is defined as a percentage of the net income earned by the company by the amount of total revenue generated by undertaking the business of the concerned. There has been an increase in the net profit margin of the company in 2017 in comparison to the previous years which means that the net income of the company have increased over the years in proportion to the increase in the revenue generated by the company.
    
        2015
    2016
    2017
    7.5
    1.1
    9.9
    
    2.
    Return on equity %
    Return on equity (ROE) is defined asa percentage of the amount of net income to the shareholdersequity. Return on equity is a measure of profitability of the company by depicting the amount of profit available for the equity shareholders.The money invested by the shareholders of the company is utilized in the best possible manner if the return on equity is on higher side. From the amount of the return on equity it can be seen that there has been a sudden decrease in 2016 but again in 2017 the result have unexpectedly increased in comparison to 2015. Thus the amounts of the shareholders are utilized efficiently by the company.
    
        2015
    2016
    2017
    17.9
    2.4
    19.5
    
    3.
    Return on capital %
    Return on capital employed (ROCE) is defined as a financial ratio used to measures a company's profitability and also how efficiently the...
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