ACC3600/ACF3600
Semester 1, 2020
Regulation of Auditing in Australia
(Individual Assignment, 15% of your Final Grade)
In August 2019, the Parliamentary Joint Committee on Corporations and Financial Services
instigated an inquiry into the regulation of auditing in Australia. The establishment of the
audit inquiry came after the Australian Securities and Investments Commission (ASIC) put
auditors on notice after its latest audit inspections revealed that further work was needed to
“improve quality”. Interested parties have made several submissions, and the terms of the
Inquiry have been the subject of extensive media reporting. Public hearings were held across
November and December 2019.
The following three (out of twelve) matters were refe
ed to the Parliamentary Joint
Committee on Corporations and Financial Services for inquiry:
1. The relationship between auditing and consulting services and potential conflicts of
interests;
2. Audit quality, including valuations of intangible assets; and
3. The role and effectiveness of audit in detecting and reporting fraud and misconduct.
For terms of reference, submissions, media releases, public hearings and further information,
see:
https:
www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financ
ial_Services/RegulationofAuditing
Assignment Requirements
You are required to complete ALL the following questions:
(1) Select ONE matter from the above three inquiry matters and describe why this matter is
of concern to the Australian Parliament. Make sure you use your own words.
See the terms of reference:
https:
www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financ
ial_Services/RegulationofAuditing/Terms_of_Reference
(1 mark, maximum 100 words)
(2) Refer to the submissions of inquiry by organisations (such as accounting firms,
accounting professional bodies, regulatory bodies and entities), choose TWO submissions by
organisations (not the individual submissions) and compare and contrast their responses/
concerns/ suggestions/ recommendations related to the matter of inquiry you select. Make
sure you write down the name of the organisations clearly. See the submissions:
https:
www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financ
ial_Services/RegulationofAuditing/Submissions
(3 marks, maximum 200 words)
(3) Select TWO academic journal articles (less than 5 years old, years 2015 to 2020) that deal
with the matter selected. Outline whether the evidence provided in the research articles
supports or refutes the cases made by the two organisations’ submissions selected in (2)
above. Proper citation is required.
https:
www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/RegulationofAuditing
https:
www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/RegulationofAuditing
https:
www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/RegulationofAuditing/Terms_of_Reference
https:
www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/RegulationofAuditing/Terms_of_Reference
https:
www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/RegulationofAuditing/Submissions
https:
www.aph.gov.au/Parliamentary_Business/Committees/Joint/Corporations_and_Financial_Services/RegulationofAuditing/Submissions
Hints:
(a) You can first
iefly summarise the research articles and then discuss how the research
supports or refutes the organisations’ submissions.
(b) Relevant research articles can be sought from the academic journals (but are not limited
to): The Accounting Review; Auditing: A Journal of Practice and Theory; Journal of
Accounting Research; Journal of Accounting and Economics; Contemporary Accounting
Research; International Journal of Auditing; Accounting and Finance.
(6 marks, maximum 500 words)
(4) Do you have any recommendations or suggestions for the Parliament on the matter of
inquiry you selected? Provide an appropriate example in your discussions. Make sure you use
your own words.
(3 marks, maximum 200 words)
Overall: Writing Style, Clarity & Structure (2 marks)
Submission Guidelines
The assignment must include appropriate referencing. Please ensure your work
complies with the Monash Q Manual requirements for structure, presentation and
eferencing. Information sources and references should be stated clearly in-text and in
the reference list.
No restriction on your style. However, clear presentation and communication are
expected.
Words limit: 10% allowance exceeding maximum word limit for each question, not
including reference.
The PDF or Word document submission must be in 12 font-size, Times New Roman,
1.5 spacing, and 1-inch page margins.
No cover sheet is required. Student name, ID and tutorial class should be indicated on
top of every page.
Your submission should be your (original) work and succinct. Any plagiarism or
direct copy/paste from any materials will be severely penalised. Moodle (Turn-it-in)
will not only compare your submission to those of your peers but also to the materials
on which the assignment is directly based.
Assignment Submission
Please submit a softcopy (PDF only) via Moodle. Further details will be disclosed in
the Moodle page.
Submission Deadline
20 April 2020 (Monday), 4 pm.
The penalty for late lodgement is 10% per business day late with no assignment to be
accepted five business days after the due date.
Individual Assignment Feedback Sheet
Marking Ru
ic
Question 1 0 pt 0.5 pt 1 pt 1.5 pt 2 pts
Select one matter / describe why this matter
is of concern
No descriptions
on the matter
selected
The descriptions
tend to be
superficial
Matter selected
are appropriately
explained
Question 2
Choose TWO submissions by organisations There is no
submission
selected or wrong
submissions
selected
Two submissions
are selected but
no descriptions
on the
submissions
Two submissions
are selected and
describe properly
Extent of the depth of analysis/summary There is no
summary or
analysis
The summary
and analysis
tends to be
superficial, and
wrong
information is
provided.
There is some
level of summary
and analysis and
some information
provided is lack
of accuracy.
There is good
level of summary
and analysis and
information
provided is
accurate
There is thorough
summary and
analysis and
information
provided is
accurate
Question 3 0 pt 0.5 pt 1 pt
(i) First research article
Select related research academic
journal articles
No academic article is selected
is or not from proper academic
journals
Academic journal article
selected is not really appropriate
in accordance to the matter
selected
Academic journal article
selected is appropriate in
accordance to the matter selected
Summary of the research article There is no summary provided Summary provided tends to be
very superficial and not relevant
to the matter selected
Summary provided is thorough
and in-depth level of discussion
Discuss whether research supports or
efutes their responses.
Discussions tend to be weak /
arguments are unclear
Good discussions overall / good
arguments provided
Very good discussions, which
flow logically / arguments are
clearly articulated
(ii) Second research article
Select related research academic
journal articles
No academic article is selected
is or not from proper academic
journals
Academic journal article
selected is not really appropriate
in accordance to the matter
selected
Academic journal article
selected is appropriate in
accordance to the matter selected
Summary of the research article There is no summary provided Summary provided tends to be
very superficial and not relevant
to the matter selected
Summary provided is thorough
and in-depth level of discussion
Discuss whether research supports or
efutes their responses.
Discussions tend to be weak /
arguments are unclear
Good discussions overall / good
arguments provided
Very good discussions, which
flow logically / arguments are
clearly articulated
Question 4 0 pt 0.5 pt 1 pt 1.5 pt 2 pts
Extent of the depth of
discussions of recommendations
or suggestions
There are no
discussions of
ecommendations
or suggestions
The discussions of
ecommendations
or suggestions tend
to be superficial
There is some level
of discussions of
ecommendations
or suggestions.
There is good level
of discussions of
ecommendations
or suggestions
There is thorough
discussions of
ecommendations
or suggestions
Example is provided and
supported by references
There is no
example provided
Example is
provided but lack of
clarity and
supported
Example is
provided and
supported by
explanations and
eferences
Overall
Writing style/Clarity & Structure Mostly unclear,
with no proper
logical structure
and many
inaccuracies in
written expressions.
Lacks clarity
overall.
There are several
e
ors and
inaccuracies in
written expression
Clear overall, but
structure could be
improved.
Written expression
may be inconsistent
and inaccurate in
parts.
Well-written, clear
and well-structured.
Very well-written,
very clear and well-
structured.