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HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HA3032 Auditing Trimester 1 / 2013 ASSIGNMENT 1 You are required to read the following statement issued by ICAA (Institute of Chartered Accountants in...

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HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION

HA3032 Auditing
Trimester 1 / 2013
ASSIGNMENT 1
You are required to read the following statement issued by ICAA (Institute of Chartered Accountants in Australia and provide an essay of between 1,000-1,500 words (being the minimum and maximum). It should be properly referenced and must be primarily of your own work. Press release: Legislation to improve the quality and transparency of the auditing process has been introduced into the House of Representatives this week by Parliamentary Secretary to the Treasurer David Bradbury. The Corporations Legislation Amendment (Audit Enhancement) Bill 2012 is the result of a Treasury review of audit quality and extensive stakeholder consultation during 2011 on measures that are designed to enhance audit quality and ensure that Australia's regulatory framework remains in line with international best practice.
Measures in the Bill include:
  • Requiring audit firms to publish an annual transparency report if they conduct audits of 10 or more significant entities
  • Empowering ASIC to issue an audit deficiency report in relation to an individual audit firm if it identifies an audit deficiency in the auditor's quality control system or the conduct of an audit that may be detrimental to the overall quality of the audit
  • Removing duplication of ASIC and Financial Reporting Council (FRC) audit inspection responsibilities so that ASIC continues its audit inspection program and the FRC focuses on providing strategic policy advice and reports on the quality of Australian audits.
  • Allowing ASIC to communicate directly with an audited body.
  • Allowing a two-year extension to the five-year auditor rotation requirement where it will not give rise to a conflict of interest and will prevent the loss of knowledge and experience where rotation could undermine the quality of the audit.
ICAA report: Reforms to enhance Audit Quality
Available from: www.chartered accountants.co.au/industry-Topics/Audit-and-Assurance
Other sources:
AUASB website
CPAA website
Required:
Discuss the following in your essay (approximately 1,000 words and no more than 1,500 please):
What each of the above actually refers to and what it means.
What is your view, giving a rational explanation to your view (you may use other sources to support your view, properly referencing). Why do you think that these measures were introduced?
The due date for this assignment will be week 6 (must be lodged by 5.00pm on the Friday). Please note: a soft copy must be lodged on Safeassign by the due date and a hard copy provided to your lecturer.
Answered Same DayDec 29, 2021

Solution

Robert answered on Dec 29 2021
36 Votes
Introduction- Audit & Its importance

Audit is an independent examination of financial Statements i
espective of nature , size or
origin to Comment on the true and Fair view of the Financials Statements if an entity. Hence
any Kind of Component, Individuals can make an audit for their firms. Audit has become
mandatory from the past years and its becoming very important for getting loans, Mortgage
ecause any financials institutions provide loans and everything seeing the Financials
statements. In the Process of Audit several fields are taken care like Cash Vouching, Bank
Vouching, Journal Vouching, Purchases Vouching and Sales Vouching but the most
important of all is doing a General Ledger review. In General Ledger review, all the Carious
ledgers of the entity is observed and if any defects exists, it is questioned from the Client.
There has been many question arising in audit that the role of auditors is to detects frauds and
e
ors in the financials Statements but that is Purely wrong because Audit is done mainly to
give more confidence to the clients that its financials Statements are free from Material
Mistakes. Thus the auditors responsibility is only to help the Client in getting More
Confidence about the Financials Statements and Yes, if there is any Materials Misstatements
existing in the Financials Statement than they have to do more thorough audit process until
their doubt is removed and again if they found that the materials Misstatements is any fraud,
than they have to report this to the Board of Director and give their report Accordingly. They
have the full power to Speak in General Meeting and can consult with the Shareholders for
the same.
Types of Audits and their Importance

Audit is generally of two types. One is External Audit and the other is Internal Audit.
External Auditors are those who are more concerned with statutory part and they Comment
on the true and fair view of the Financials Statements of...
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