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TABLE OF CONTENTS S.N TOPIC PAGE NO. 1. Introduction 3 2. Purpose and values 4 3. Issues 4 4. Economic Contribution 5 5. Responsible and Ethical Behavior 5 6. Remuneration Report 6 7. Financial...

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TABLE OF CONTENTS
     S.N
    TOPIC
    PAGE NO.
    1.
    Introduction
    3
    2.
    Purpose and values
    4
    3.
    Issues
    4
    4.
    Economic Contribution
    5
    5.
    Responsible and Ethical Behavio
    5
    6.
    Remuneration Report
    6
    7.
    Financial performances
    7
    8
    Recommendation and Conclusion
    8
    9.
    References
    9
INTRODUCTION
Crown limited established in 2007, has been one in every of the largest enjoyment corporations situated in the united states of Australia. The precise company entity has endured to make investments in the resorts of Australia and that has resulted in making the fact of prominent that it remains one of maximum treasured tourism assets inside the United States of America. There are 4 
anches that the corporate entity has in general. those are Crown Sydney, Crown Perth, Crown Melbourne and Crown Aspinalls. which means that this unique motel agency in Australia is spreads over the whole united states of America. it could be further stated that during Australia, Crown inns completely owns and ca
ies out the operations of two of the maximum famous motels in Australia which are of the call Crown Melbourne leisure complicated and Crown Perth leisure complex. It need to be refe
ed to here that this specific corporate entity also contains out its widespread operations outside Australia. which means the corporate entity also has a enterprise unit in London with the name Crown Aspinalls which has won a whole lot popularity in the foreign.
About one-third of the Crown's revenue in fiscal 2014 came from foreign visitors. The majority of this income comes from Asian visitors - mostly Chinese. It is one of Crown Australia's most significant international tour operators, with a particular focus on Asian tourism. The Crown also has several international sales offices that it uses to promote its properties. The enterprise also motivates their employees with various sorts of rewards and awareness programs, presenting help and possibilities for indigenous people and human beings with disabilities is additionally part of the company's HR. More than 1160 humans have been engaged in these programs. Overseas, Crown owns and operates Crown Aspinalls in London, one of the high-end licensed casinos in the West End enjoyment district. Crown also holds a 50% fairness ho
y in the UK-based Asperse Group and a 20% pastime in Nobu.
Over 28 million people visit the crown’s Australian resorts each year.  Crown Resorts is famous all over the world, especially in Asia, with a view to luxury rooms, unrivaled service, quality restaurants and shopping, and world-class gaming and entertainment. The Crown's Australian Resorts in Melbourne and Perth has over 2,300 hotel rooms, VIP villas, casino, swimming pools, luxury spas, signature restaurants and shops, meeting rooms and entertainment. The Crown is Australia's largest employer with over 15,000 people working at its resorts in Melbourne and Perth. Furthermore, studies have shown that the Crown's direct and indirect impact on full-time employment in Australia is up to 26,000.
Crown College
Crown College, As a registered schooling enterprise (RTO) with a wealth of enterprise understanding with an incredible 23 year award triumphing record within the education Sector. Crown college specialize in handling over hospitality, patisserie, commercial cookery and management coursework those coaching applications are within the Australian qualifications Framework throughout four tiers; certificates III, certificates IV and diploma and superior degree qualifications.
PURPOSE AND VALUE
Over the direction of the 2019 monetary year, groups from crown Perth and crown Melbourne embarked on a experience to attention even more on making sure employees and customers are on the heart of the whole thing crown does.
This covered growing crown’s cause and values. Crown’s purposes the assertion “collectively we create memorable reviews” which can be really worth to for remembering with the capacity to boom emotional connection to the clients. In conveying the ones encounters, Crown holds fast to its four key characteristics:
• We act consciously • we're enthusiastic • we cooperate and • we make the quality decision.
Pushing ahead, these qualities will be inserted into all business rehearses counting Crown's Reward and recognition programs, authority publications and associated proficient practices throughout Crown Melbourne, Crown Perth also, soon, Crown Sydney
ISSUES
· there has been an trouble regarding the Crown hotel this is situated in Melbourne. To be specific, Crown Melbourne has been of the opinion that it did no longer commit a
each in regards to the playing law act.
· The management of Crown Melbourne has said the fact that it had no longer performed a specific 
each of the playing regulation act whilst sporting out the trial of the gambling machines.
· some other essential piece of information has been that the billionaire James Packer had resigned from the location of a Board of Director resulting from mental health issues.
It further stated here,  that the
and new government chairman who has shared his evaluate inside the accounting report for the financial 12 months of 2017 has been of the name John H Alexander. James Packer have been running as a on line casino operator for all the casinos that have been held by Crown hotels confined. furthermore, it had been mentioned within the information disclosure that the 50year old Australian has the plans to leave all his commitments and retire from the task role that he holds. it's been further mentioned that beneath his operational times, the fee of the shares did fall as little as 1.7 percentage in Sydney.
Moreover, the mental trauma of
eak up along with his long-term accomplice with whom he have been engaged in addition added as much as intellectual troubles that had ultimately led to the elimination from the board of the crown resort limited.
ECONOMIC CONTRIBUTION
Crown makes a enormous contribution to the financial system via attracting hundreds of site visitors to their inns and using heaps of Australia economic contribution. A 2018 unbiased assessment via ACIL Allen consulting estimated the financial contribution to Australian Actual GDP of Crown’s Australian inns is up to4.4 billion, with crown Melbourne contributing up to $3.2 billion and crown Perth contributing up to $1.2 billion. The direct and indirect full employment affect was once estimated to be up to 25,000 staffs associated with Crown’s Australian resorts, with up to 16,500 staffs at Crown Melbourne and up to 8,500 at Crown Perth.
Tax Contribution of Crown continues to be a substantial tax payer, incu
ing over $500 million in taxes to all degrees of authorities in Australia in the monetary year 2019, representing approximately two-thirds of crown’s pre-tax profit. Commitment to Australian businesses crown, through its procurements activities ,places full-size importance on helping Australian Businesses over 90% of all the spend and seller relationships closing in Australia. Over $900 million is spent annually with about 4,000 agencies in Victoria and Western Part of Australia, Supporting an ecosystem of oblique jobs. Crown’s capital Expenditure program crown has introduced anticipated capital expenditure in the length from Fiscal year 2015 to Fiscal Year 2022 of nearly $4 Billion in maintaining, enhancing and expanding its facilities in Melbourne and Perth and in the development of Crown Sydney.
RESPONSIBLE AND ETHICAL BEHAVIOUR
A manner of life of accountable and moral behavior underpins all of crown resort limited commercial enterprise achievement.A study framework regarding corporate governance supports the administration of the commercial enterprise. As, crown additionally follows the splendid practice hints set out with the aid of the method of the usages of the AXS company governance council’s ideas.
Conflicts of Interest
Crown has a number policies and procedures in area which cope with conflicts of interest. Employees are required to inform their immediately supervisor or supervisor or the organisation Secretary of any possible or plausible battle of challenge for the purpose of doing away with or minimizing them right away.
Management Risk
Crown has mounted a framework for the oversight and  administration of  material enterprise dangers and has adopted both a proper  danger  control policy and a proper  chance control approach, which includes an articulation of its danger urge for food, that's administered thru Crown’s Board convened hazard management Committee. Management is charged with tracking the effectiveness of Crown’s danger administration buildings and is needed to record to the board through the chance control risk Committee.
Environment sustainability
XXXXXXXXXXCrown takes a extensive range of strategies environmental sustainability, aligning techniques and packages which are in a similar fashion restrict that the environmental have an impact on and make a contribution to growing more sustainable practices, focusing on foremost three regions :
· Waste, 
· power 
· Water control.
Crown’s environmental sustainability application, CROWN EARTH was once as soon as added with a clean intent to supply approach, plans, moves and consequences in environmental sustainability. The CROWN EARTH enterprise is right away recognizable with the useful resource capability of way of managers and employees alike and  indicates  Crown’s commitment  to the three pillars of sustainability:  human beings, planet and prosperity.
REMUNERATION REPORT
The remuneration document that has been blanketed with the financial file of the company entity identifies the outline names of the non-government directors that from a massive a part of the corporate entity. Furthermore, a detailed shape of the institution of administrators were included within the remuneration document of the corporate entity. The report of Crowns resort limited constrained additionally includes the precise head of administrators in the line with their rank and details of the shape in their remuneration. The remuneration report has been segregated skillfully and consists of all the crucial factors that ought to always be a part of the document. The report has been prepared by the idea of the senior executive and the non-government administrators (Mardini, Crawford and electricity 2015)
FINANCIAL PERFORMANCE
Group performance for the year ended 30 June 2019
    Summary of performance
    FY 19 ($m)
    FY 18 ($m)
    %Change
     Normalized revenue
    3,139.2
    3,483.4
    (9.9%)
    Normalized EBITDA
    802.1
    878.3
    (8.7%)
    Normalized EBIT
    528.5
    592.4
    (10.8%)
    Normalized NPAT attributable to Crown
    368.6
    386.8
    (4.7%)
    Reported NPAT before significant items attributable to Crown
    401.8
    326.7
    (23.0%)
    Significant items (net of tax) attributable to Crown
    –
    232.2
    (100.0%)
    Reported NPAT after significant items attributable to Crown
    401.8
    558.9
    (28.1%)
    Normalized EBITDA by segment Crown Melbourne
    589.5
    645.0
    (8.6%)
    Crown Perth
    221.8
    248.8
    (10.8%)
    Crown Aspinalls
    6.4
    12.0
    (46.5%)
    Wagering and online social gaming operations
    26.1
    26.9
    (2.7%)
    Corporate
    (41.7)
    (54.4)
    23.3%
RECOMMENTAION AND CONCLUSION
The Recommendation that is applicable on this specific state of affairs is that the annual report or file of the crowns limited’s company limited has been according to the prescribed format and well known mounted by the accounting body of Australian accounting requirements board. Crowns focuses on improving the hidden exhibition and includes the ventures to animate appearance and well spend on more administration expenses which is better foe the company in the process of long term. However, a particular thing that ought to be refe
ed to here by using the prepares of the yearly document is that the duration of the report is length which impacts the pleasant of the report as well. Crown limited contribute more on Australian economy as well and keeps up a suitable and proficient capital structure and proceeds to convey comes back to the investors. Due to the impact of the global pandemic (Corona virus) Crown resort they stood down about 95% of team of workers amid this virus and major income generating sources have been impacted badly of its personnel due to the suspension of gaming and different non-essential services at its Melbourne and Perth inns.
REFERENCES
Barth, M.E., 2015. Financial accounting research, practice, and financial accountability. prAbacus, 51(4), pp XXXXXXXXXX.
Newbe
y, S., 2015. Public sector accounting: shifting concepts of accountability. Public Money & Management, 35(5), pp XXXXXXXXXX.
Crownresorts.com.au. 2020. Crown Resorts - Crown Resorts. [online] Available at: www.crownresorts.com.au/Our-Contribution/Corporate-Responsibility-Reports> [Accessed 27 April 2020].
Tham, A. and Huang, D., 2018. Game on! A new integrated resort business model. Tourism Review.
Crownresorts.com.au. 2020. [online] Available at: www.crownresorts.com.au/CrownResorts/files/6f/6fb4ea53-4b02-4da3-afb7-5dfb350057ba.pdf> [Accessed 27 April 2020].
Crownresorts.com.au. 2020. [online] Available at: www.crownresorts.com.au/CrownResorts/files/6f/6fb4ea53-4b02-4da3-afb7-5dfb350057ba.pdf> [Accessed 26 April 2020].
10

Assessment (Company is HARRIS SCARFE)
Word Limit 2500 words + 10%
Purpose: This assignment requires your assessment of real-life auditing issues through a case study that links auditing theory, auditing practice and auditing performance.
This assessment relates to learning outcomes a, b and c.
Value: 20% Due Date: Week 10 – 11:59 pm Thursday of Week 10
Topic: The critical analysis of a Australian company with audit issues which lead to its failure
formerly listed failed Australian company that had audit issues, as approved by your tutor. Critically analyse how the auditors failed to fulfil their duties and responsibilities. You must discuss at least three key audit issues that arose in the case such as auditors’ independence, professional and ethical behavior and audit quality. Critically evaluate whether the auditors performed adequate audit risk assessments
Answered Same Day May 04, 2021

Solution

Preeta answered on May 15 2021
158 Votes
Executive Summary:
This report has been prepared on the company, Ha
is Scarfe. Discussions have been made on what led to the epic collapse of the company and the role played by the management, auditor and accountants of the company in this collapse. The main focus has been made on the role of the auditor and the audit issues found in the case like independence of the auditors, conflict in the interest and responsibilities of management and auditors, negligence of the Auditor, lack of independence of the audit committee and the auditor, lack of proper internal control and corporate governance and other ethical issues. The role of the external auditor, internal auditor as well as the two audit firms appointed by the company, ‘Ernst and Young’ and ‘PWC’, has been discussed in detail.
Contents
Executive Summary:    1
Introduction:    3
Situational Overview:    3
Audit issues:    4
Risk Assessment:    6
Conclusion and Recommendation:    7
References:    7
Introduction:
It is the responsibility of the auditor to check if the financial statement of a company is representing true and fair view and is free from any material misstatement. But in early 2000, the role of the auditors was just to provide assurance on the financial statement without being very powerful. The case of Ha
is Scarfe was revolutionary in the corporate sector of Australia and led to various reforms and changes. The focus was made more on the necessity of the independence of the auditor and the power which must be possessed by the auditor for quality control. So, in a way this case was one of the stepping stone for the formation of cu
ent duties and responsibilities of the auditor. In this case, there was lack of independence for the auditors. They were negligent and also violated their code of conduct and adopted unethical practices. The role of the management and the auditors which led to the collapse of such a giant company, Ha
is Scarfe has been discussed in this report. The changes and responses towards this case has also been discussed.
Company Information:
Ha
is Scarfe operated from 1850 to 2001. The founding partners wanted to establish a hardware and ironmongery business. Slowly the company became large supplier of items for agriculture, household and industrial items. The popularity and the standard of the company was such that Australian Government used the catalog of the company to control price at the time of the second world war. The company faced immense growth thereafter and also entered the industry of supplies for materials of building.
One of the subsidiary of the company Investment and Merchant Finance Corporation Limited (IMFC), Baradeen Quest Pty Limited acquired the company in 1971. Later in 1976, Charles Davis Limited acquired IMFC and so eventually acquired Ha
is Scarfe. Its first store was opened in 1994 and the company shifted its focus on the department store activities and disposed off its other investments and business. The company prospered until it collapsed in 2001 when it has $265 million of debt in its books of accounts and it was revealed that the prosperity was illusionary (Carnegie and O'Connell 2012).
Situational Overview:
Before proceeding to the audit issues, it is important to understand what led to the decline of such a big company. The collapse of the company was mainly caused by setting wrong records of the company which gave a wrong impression of the company to the shareholders. The accounts were being fraudulently changed for a time period of over five years. Then suddenly in 2001 the company went for voluntary liquidation giving shortage of cash flow as the reason. Basically the stocks that is the inventory was inflated which showed high profits being earned by the company where that was not the actual scenario. This practice over five years landed the company in actual problem of cash shortage. The management of the company fell into their own trap due to the fraudulent practices followed by them. Several issues led to the downfall of the company like lack of proper corporate governance, auditors not doing their duty and following the responsibilities, management was not doing their duty and following their responsibilities, accountant not doing their duty and following their responsibilities, government and regulatory bodies failed to do their duties of properly investigating in a company. Two audit firms, ‘Ernst and Young’ and ‘PWC’ were involved in the case which were considered to be among top four audit firms in the world (Azizkhani, Monroe and Shailer 2010).
Audit issues:
The following audit issues were found in case of Ha
is Scarfe:
· Conflict between responsibility of management with responsibility of auditor:
It is the responsibility of the management to show the company at a good financial position and so for that they inflated the profit whereas it is the responsibility of the auditor to show the true and fare view of the financial statement and so they were against this practice. As per Corporations Act,...
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