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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|Page HA3032 GroupAssignment T1 2018 This...

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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|Page

HA3032 GroupAssignment T1 2018

  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 her/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 =3,000words

  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 throughSafeAssign

Format of the Report

1. You should at least have the following details:

a. b. c.

d.

An Assignment Cover Page clearly statingallof your members names and student numbers Brief Introduction or Overview of what the report is about.

Main Body of the report with sections to answer the above sections and with appropriate section headings. Provide your responses in a table format.

Conclusion

e.

  1. Ensure all diagrams and tables are clearly labelled and explained.

  2. Ensure all materials used are correctly referenced.

  3. Use page numbers at the bottom of each page of the assignment.

  4. Use the correct in-text referencing, appropriate expression, correct grammar, spelling and punctuation, 10-12pt font, appropriate word length and normal margins.

    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.

List of References.

2|Page HA3032 GroupAssignment T1 2018

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, auniqueASX 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.

3|Page HA3032 GroupAssignment T1 2018

Detail Project Tasks: Developing an Audit Program for a selected listed Company

  1. Select a listed company from the current ASX List.

  2. Understand the nature of the entity and its industry, including the following items:

    1. Business operations

    2. Investments and investment activities

    3. Financing and financing activities

    4. 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. Selectfour key ratiosand provide a brief 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 being 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,

4|Page

HA3032 GroupAssignment T1 2018

5|Page

HA3032 GroupAssignment T1 2018

HA3032 – AUDITING - T1 2018 Group Assignment Form Details

Please complete this form as soon as possible and provideone copyonly to your lecturer. You will select or be assigned auniqueASX 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___________________________ (T XXXXXXXXXXSession No.________

Campus Location_________________________

Student Name
1. __________________________

Student Name
2. __________________________

Student Name
3. __________________________

Date______________

Student No. ______________________________

Student No. ______________________________

Student No. ______________________________

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 contributeequallyto the completion of the group assignment and submitone assignment onlyby 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____________________________ Signed____________________________ Signed____________________________

Date__________ Date__________ Date__________

Answered Same Day May 11, 2020 HA3032

Solution

Pulkit answered on May 25 2020
133 Votes
AUDIT PROGRAM REPORT OF ABACUS PROPERTY GROUP
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AUDIT PROGRAM REPORT OF ABACUS PROPERTY GROUP        Name of Student:        Student ID:            
Introduction:
The report is about the preparation of audit program of Abacus Property Group is a leading group in the business of property and specializes in providing private real estate investment opportunities in Australia as well as New Zealand. The report details down the audit areas which are critical and requires detailed analysis by the auditor.
Tasks 2-8
1. The following are the details in respect of the Abacus Property Group:
(a) Business Operation:
Abacus Property Group is a leading property group that specializes in private equity style real estate investment opportunities across Australia and New Zealand. Abacus was established in 1996. Abacus Property Group (“APG” or the “Group”) is comprised of Abacus Group Holdings Limited (“AGHL”) (the nominated parent entity), Abacus Trust (“AT”), Abacus Group Projects Limited (“AGPL”), Abacus Income Trust (“AIT”), Abacus Storage Property Trust (“ASPT”) and Abacus Storage Operations Limited (“ASOL”). Shares in AGHL, AGPL and ASOL and units in AT, AIT and ASPT have been stapled together so that neither can be dealt with without the other. The main activities of Abacus Property Group were investment in office, retail and industrial properties, self-storage facilities, participation in property ventures and developments and property funds management. There has been no significant change in the nature of these activities during the year. The group is involved in acquiring property based assets and actively managing those assets to enhance income and capital growth.
(b) Investments and investment activities:
Abacus Property Group invested in a diversified investment portfolio of office, storage, industrial and retail properties. Rental income from these properties is the largest contributor to the earnings of the Group. The investment objective of the group is to provide the investors with reliable and increasing returns. The investment is basically in property assets that are capable of providing income by way of: – rental income; and – asset value as a result of our diligent active management. Abacus generally invests in commercial assets which are B-Grade assets in good core locations in major trading or CBD areas up to $100 million in value.
The principal activities in which Abacus Property Group is involved and which were necessary to be ca
ied out in order to earn money are
- Investment in office, retail and industrial properties to derive rental and fee income;
- Investment in self-storage facilities to derive self-storage income;
- Participation in property ventures and developments to derive interest income and capital profits; and
- Property funds management to derive fee income and equity returns.
(c) Financing and financing activities:
Abacus participates in projects directly or indirectly with experienced joint venture partners through the combination of capital and property. Abacus provides finance solutions for real estate development with participation in project upside. Abacus has offered a wide range of high quality investment solutions designed to meet the needs of different groups of retail investors. Since 2009 the Group has worked towards wholesale third party capital and has acquired over $1 billion of assets with global investors.
(d) Financial reporting practices:
The initial recognition of the financial asset or financial liability is done at the fair value prevalent in the market. The purpose of using the method of fair value for valuation of the assets and liabilities is because of the reason that the Group consist of mainly assets and liabilities which are of financial characteristics and need to be fairly measured to depict true picture of the group as a...
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