ACCG8125_S220_Assignment Brief ACCG8125 AUDITING AND ASSURANCE SERVICES CASE STUDY ASSIGNMENT: GROUP REPORT (PART 1) AND VIDEO PRESENTATION (PART 2) DEPARTMENT OF ACCOUNTING AND CORPORATE GOVERNANCE...

ACCG8125_S220_Assignment Brief


ACCG8125
AUDITING AND ASSURANCE SERVICES
CASE STUDY ASSIGNMENT: GROUP REPORT (PART 1) AND VIDEO
PRESENTATION (PART 2)


DEPARTMENT
OF ACCOUNTING
AND CORPORATE
GOVERNANCE
Macquarie Business
School

Page 2 Session XXXXXXXXXXACCG8125 Assessment Criteria and Requirements
CASE STUDY ASSIGNMENT (40 MARKS REPRESENTING 20% OF THE TOTAL ASSESSMENT)
PART 1: GROUP REPORT (20 MARKS REPRESENTING 10% OF THE TOTAL ASSESSMENT)
You will be allocated to groups of four (4) or five (5) within your seminar for the purposes of undertaking
this assignment. Only one submission per group is to be made electronically on iLearn by the due date and
time (i.e. you should nominate one member to submit).
The objective of the written Group Report is to develop your communication skills and capacity for
collaborative learning and to test your ability to integrate skills learnt in this unit of study, i.e. to analyse a
company/industry from the auditor’s perspective, with an emphasis on applying relevant industry and
cu
ent business information and context to the audit planning process.
The specific industry in which your audit client operates will be allocated to you in Week 4.


PART 2: VIDEO PRESENTATION (20 MARKS REPRESENTING 10% OF THE TOTAL ASSESSMENT)
The Video Presentation is completed with the same team as Part 1 of the Case Study Assignment and
uilds on the work undertaken for the Group Report. It is based on the same specific industry allocated to
each group in Week 4, and further extends application of the knowledge from this unit. Each student must
address a specific part of the required and speak for 1 minute as part of the Video Presentation by the group,
as well as submitting one (1) PowerPoint slide addressing the requirements of the specific question
assigned. Each student’s contribution to the video and his/her PowerPoint slide will be marked individually
(technical content and quality of communication/presentation).

Page 3 Session XXXXXXXXXXACCG8125 Assessment Criteria and Requirements
PART 1: GROUP REPORT (20 MARKS REPRESENTING 10% OF THE TOTAL ASSESSMENT)
Common company background (i.e. ABC Limited) is provided for all groups to ensure there is no
need to make any assumptions about the operational aspects of the audit client but instead the answers
focus on the relevant industry, regulatory and cu
ent economic context (i.e. not on assumed
entity specific operational issues).
ABC Limited
You are an audit graduate assigned to the audit of ‘ABC Limited’ (ABC) for the financial year ending 30
June 2020. ABC is an Australian company based in Sydney and has been operating successfully for over 20
years. ABC has been listed on the Australian Stock Exchange for the last 10 years and has operations
throughout Australia. This is your audit firm’s third year as ABC’s auditor. ABC has received unmodified
audit reports for both prior audits. Assume that ABC is a going concern and operates within the
specified industry allocated to your group.
Required:
Based on extensive research of the specific industry allocated to your group as well as its relevant cu
ent
egulatory, business and economic context, address the following audit planning requirements and risk
assessments for the audit of ABC.
1. Applicable Laws and Regulations (4 marks)

Provide two (2) key different categories of laws
egulations (other than financial related
categories which includes legislation such as: Corporations Act 2001, Australian taxation laws, ASX
listing requirements, etc.) that would be specifically applicable to ABC and the industry in which it
operates. Provide an example of a specific legislation
egulation for each category and justify why it is
important to ABC/specific industry.
Your responses should be presented in the following format:
Category
(1 mark)
Legislation
egulation
(1 mark)
Justification of importance
(2 marks)
1. Example: Financial reporting
and audit
(Please note that this example
falls into ‘financial related
category’ and is thus excluded
for the purposes of the required)
Example: Corporation Act 2001 Example: ABC is a listed company and
therefore needs to comply with specific
annual and half yearly financial
eporting requirements including
application of IFRSs and mandatory
audit requirements.
2.

Page 4 Session XXXXXXXXXXACCG8125 Assessment Criteria and Requirements
2. Risk of Fraud (3 marks)
Identify and discuss a specific account which you consider to be most susceptible to misappropriation
or fraudulent financial reporting for the industry that ABC operates in. Your discussion should
specifically address why and how the account and assertion identified is susceptible to fraud.
Your responses should be presented in the following format:
Account
(0.5 marks)
Assertion
(0.5 marks)
Explanation of why and how by reference to whether it
is misappropriation or fraudulent financial reporting
(2 marks)

Page 5 Session XXXXXXXXXXACCG8125 Assessment Criteria and Requirements

3. Business Risks (9 marks)
Based on the specific industry characteristics, cu
ent economic conditions and business climate:
a) Identify two (2) business risks (other than going concern) that the auditor will need to
consider in undertaking ABC’s risk assessment.
) Explain why each business risk identified in a) above represents significant audit (i.e.
inherent) risk.
c) Identify the key account affected for each risk in b) above.
d) Identify the key assertion at risk in relation to each account identified in c) above.
Your responses to (a) to (d) should be presented in the following format:
(a)
Business risk
(2 marks)
(b)
Explanation of audit (i.e. inherent) risk
(4 marks)
(c)
Key account
(1 mark)
(d)
Key assertion
(2 marks)
1.
2.

Page 6 Session XXXXXXXXXXACCG8125 Assessment Criteria and Requirements
4. Responses to significant risk at assertion level (4 marks)
For each of the two key accounts and assertions at significant risk identified in 3. above describe in
detail a relevant practical substantive test of detail that will address the specific risk and assertion
identified.
Your response should be presented in the following format:
Account Assertion Substantive Test of Detail
(4 marks)
1.
2.

Page 7 Session XXXXXXXXXXACCG8125 Assessment Criteria and Requirements
LENGTH AND FORMATTING OF THE GROUP REPORT
Maximum 3 pages. This includes any bibliography where applicable (note that appendices, where attached will
not be marked). Font size must be at least 11 with no less that 1.15 line spacing. It is mandatory to provide your
answers in the tables and format provided.
SUBMISSION AND DUE DATE
Only one submission per group should be made by one (1) nominated group member to Turnitin on
iLearn by 4pm on Monday 5 October 2019 (Week 9). The submitting group member should be listed first on the
group coversheet.
The person submitting the assignment must send the Turnitin Originality report to each group
member. This is because each member will be held accountable for any plagiarism. Plagiarism is treated very
seriously by the University and students are advised to familiarise themselves with the University Academic
Honesty Policy. If you are a group member and have not received the Turnitin Originality report within 24 hours
of assignment submission from your nominated group submitter, you need to contact us at
XXXXXXXXXX
All students must individually complete the self and peer assessment form and submit this on iLearn by
their Week 9 seminar.
PENALTIES
Please note the following penalties for this assignment:
 Late submissions will receive a deduction of 10% of the total available marks made from the total
awarded mark for each 24 hour period of part thereof that the submission is late (for example, 25 hours
late in submission-20% penalty).
 Inco
ect submissions (e.g. submitting the wrong file/old version/assignments for a different unit,
etc) will be awarded a marked of zero (0). It is your responsibility to ensure that you submit the co
ect
files. You may resubmit until the due date and time. Any submission on the due date and time will be
taken to be the final. No further submission will be allowed.
 Failure to adhere to length requirements will result in any content beyond the page limits not
marked.
 Failure to adhere to formatting instructions or provided formats will result in a deduction of
25% of the total available marks made from the total awarded mark for this component of the assessment
task.
 Failure to complete the assignment in a group will result in a deduction of 25% of the total
available marks made from the total awarded mark for the group component of the case study assessment
task. It is your responsibility to regularly communicate and actively collaborate with your group from
early in the semester. No complaints in relation to non-performing/absent group members will be
considered just before/on/after the due date and time. Any complaints should be directed to your
Seminar Leader and must be
ought to the Unit Convenor’s attention early in the semester. The Unit
Convenor may direct students who do not contribute or participate in the group component to complete
the component by themselves i.e. individually. This penalty will apply in the event of this happening.
Under no circumstances will this penalty be waived for students who do not complete the assignment in
a group.

Page 8 Session XXXXXXXXXXACCG8125 Assessment Criteria and Requirements
CRITERIA AND STANDARDS
The following standards apply to this assessment task.
Descriptor Mark (%) Grade
An exemplary level of performance. The group has demonstrated a very
high level of understanding of the unit content and very strong ability
to apply this knowledge in the context of the case study company’s
industry. The Group Report demonstrates an extensive level of
inte
ogation of the case study company’s industry, regulatory and
usiness context including cu
ent economic conditions. The responses
eflect a strong appreciation of the complexity of the case study
company’s environment and provide appropriate, specific and practical
audit responses in view of this.
85 – 100 HD
A superior level of performance. The group has demonstrated a high
level of understanding of the unit content and strong ability to apply
this knowledge in the context of the case study company’s industry.
The Group Report demonstrates a high level of inte
ogation of the
case study company’s industry, regulatory