1 HI6026 Audit, Assurance and Compliance Trimester 2 2018 Individual Assignment Assessment Value: 20% General Instructions: 1. This assignment is to be submitted in accordance with the assessment...

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HI6026 Audit, Assurance and Compliance
Trimester 2 2018
Individual Assignment
Assessment Value: 20%
General Instructions:
1. This assignment is to be submitted in accordance with the assessment policy
stated in the Unit Outline and Student Handbook.
2. It is the responsibility of the student who is submitting the work, to ensure that the
work is in fact he
his own work. Incorporating another’s work or ideas into one’s
own work without appropriate acknowledgement is an academic offence. Students
should submit all assignments for plagiarism checking on Blackboard before final
submission in the subject. For further details, please refer to the Unit Outline and
Student Handbook.
3. Maximum marks available: 20 marks. Refer to marking ru
ic for marking criteria.
4. Assignment should be of 2,500 words. Please use “word count” and include this
in the report. Presented in Cali
i font size 12.
5. Due date of submission: Week 9, Friday at 12.59 p.m.
Topic: How is Enhanced Auditor Reporting being em
aced in Australia?
Background and Context:
Since 2016, there has been a strong push to improve the quality of audit reporting.
Listed entities now have to report on “key audit matters” and improve the way
material information is communicated using “plain English”. As mentioned in the CPA
Australia podcast “How is Enhanced Auditor Reporting being Em
aced around the
Globe?” (available at CPA Australia website):
2

“The IAASB’s new auditor reporting requirements commenced in December
2016. Standard setters in many jurisdictions, including Australia and New
Zealand, have issued the new requirements with the same effective date,
whilst others have committed to issue the standards but have not yet done so.
The UK have had similar requirements in place since 2013 and some firms in
other countries have early adopted the IAASB’s requirements. Jim Sylph, Co-
chairman of the IAASB’s Auditor Reporting Implementation Working Group,
and Me
an Kelsall, IAASB member and AUASB Chairman spoke to CPA
Australia about the uptake and impact of enhanced auditor reporting around
the globe.”
Note> Refer to the links below and listen to the podcast before you
commence the assignment.
http:
directory.libsyn.com/episode/index/id/4886297
www.cpaaustralia.com.au/professional-resources/audit-and-assurance/auditor-
eporting
http:
www.auasb.gov.au/Publications/Auditor-Reporting-FAQs.aspx
Research Assessment:
Download an annual report of an ASX listed company that is in the S&P/ASX 300
list. Review all the sections within the selected company’s annual report, which relate
to the Auditor’s role in providing assurance over the entity’s financial statements and
control environment. Students will need to review and analyse the following key
areas included in the company’s Annual Report:
 Auditor’s Independence Declaration
 Independent auditor’s report
 Non-Audit services performed by the Auditor
 Auditors’ remuneration
 Role, functions and composition of the Audit Committee
 Independent Auditors report to the members (shareholders)
 Review all Key Audit Matters noted and the associated audit procedures
http:
directory.libsyn.com/episode/index/id/4886297
http:
www.cpaaustralia.com.au/professional-resources/audit-and-assurance/auditor-reporting
http:
www.cpaaustralia.com.au/professional-resources/audit-and-assurance/auditor-reporting
http:
www.auasb.gov.au/Publications/Auditor-Reporting-FAQs.aspx
3

Required:
Based on your analysis of the auditors’ sections and other areas pertaining to the
auditor, as included within the Annual Report, submit a report which summarises and
evaluates the auditor’s assurance services performed for the client company.
As part of your review of the assurance services provided, consider the following:
 Has the auditor complied with Independence requirements?
 If there were non-audit services provided, what was the nature of such
services?
 Provide an analysis of the Auditor’s remuneration in a table with prior year
comparisons. Include percentage changes and explanations of the
emuneration.
 In relation to the key audit matters, which audit procedures were performed
to provide assurance over each matter? Summarise and paraphrase each key
audit matter. Co
ectly classify each audit procedure listed as: tests of
controls, substantive tests of detail, substantive test of balances or analytical
procedures.
 Is there an Audit committee? Are there any non-executive directors on the
audit committee? Is there an Audit Committee Charter? If so, summarise the
main points of the charter including: the structure, function and responsibilities
of the Audit Committee.
 What type of Audit Opinion was expressed?
 How do the Directors’ and Management’s responsibilities differ from the
Auditor’s responsibilities in relation to the financial report?
 Were there any material subsequent events? If so,
iefly outline them and
paraphrase and summarise how they were treated.
 As an interested third party stakeholder, make an assessment of the
effectiveness of the material information reported by the Auditor in your
conclusion.
 Consider whether there is any material information which could be missing,
under-reported and/or not fully explained or disclosed in an effective way for
the intended users?
4

 What follow-up questions would you ask the Auditor at the company’s Annual
General Meeting?
Report Structure:
1. Executive Summary
 The Executive summary should be concise and not involve too much detail.
 It should make commentary on the main points only and follow the sequence
of the report.
 Write the Executive Summary after the report is completed, and once you
have an overview of the whole text.
 The Executive Summary appears on the first page of the report.
2. Contents Page – This needs to show a logical listing of all the sub-headings of
the report’s contents.
3. Introduction – A short paragraph which includes background, scope and the
main points raised in order of importance. There should be a
ief conclusion
statement at the end of the Introduction.
4. Main Body Paragraphs with numbered sub-headings – Detailed information
which elaborates on the main points raised in the Introduction. Each paragraph
should begin with a clear topic sentence, then supporting sentences with facts
and evidence obtained from research and finish with a concluding sentence at
the end.
5. Conclusion – A logical and coherent evaluation based on a thorough and an
objective assessment of the facts. Key information has been appraised from an
analysis of the company’s annual report and supplementary research to support
the final evaluation of the Auditor’s findings in the Annual report.
6. Appendices – Include any additional explanatory information which is
supplementary and/ or graphical to help communicate the main ideas made in the
eport. Refer to the appendices in the main body paragraphs, as and where
appropriate.
5

Additional Resources Reference Links:
https:
www.charteredaccountantsanz.com/Auditor-Reporting-one-year-on
(Enhanced reporting requirements review one year after introduction)
https:
www.cpaaustralia.com.au/~/media/corporate/allfiles/document/about/audit-
isk-committee-charter.pdf (Sample Audit Committee Charter)
https:
www.intheblack.com/~/media/intheblack/allfiles/document/pdf-
documents/enhanced-auditor-reporting-questions-and-answers.pdf (Enhanced
Auditor Reporting. Live Chat: Questions and Answers)
CPA Australia Podcast web-page for illustrative purposes is shown below:
http:
www.charteredaccountantsanz.com/Auditor-Reporting-one-year-on
https:
www.cpaaustralia.com.au/~/media/corporate/allfiles/document/about/audit-risk-committee-charter.pdf
https:
www.cpaaustralia.com.au/~/media/corporate/allfiles/document/about/audit-risk-committee-charter.pdf
https:
www.intheblack.com/~/media/intheblack/allfiles/document/pdf-documents/enhanced-auditor-reporting-questions-and-answers.pdf
https:
www.intheblack.com/~/media/intheblack/allfiles/document/pdf-documents/enhanced-auditor-reporting-questions-and-answers.pdf
6

Assignment Marks Allocation:
Executive Summary XXXXXXXXXXmarks)
Main Body of the Report XXXXXXXXXXmarks)
Conclusion XXXXXXXXXXmarks)
Spelling and Grammar (1 mark)
Presentation XXXXXXXXXXmark)
Reference and Citation (2 marks)
Total XXXXXXXXXXmarks
Note> Refer to the Individual Assignment Ru
ic below
7

HI6026 - Individual Assignment Marking Ru
ic
Criteria weight Excellent Good Satisfactory Sub-standard
Executive
Summary
4 marks
 Very effectively
written synopsis with
clear communication
of the main points.
(4 marks)
 Competently
composed synopsis
with the main points
communicated.
(3 marks)
 Synopsis is clearly
written, but it is
ief
or has some e
ors.
(2 marks)
 Synopsis is deficient
and poorly written.
Too
ief.
(1 mark)
Main Body
Including
Introduction
8 marks
 Excellent. Well
organised. Main
points are logically
ordered; sharp sense
of structuring and
a
angement of key
information.
Supporting details
are specific to the
main points and
adequate facts and
other evidence is
provided and well -
articulated.
(7 – 8 marks)
 Organised; but
some main points
are disjointed,
incomplete or not
co
ectly prioritised.
Some details do not
support the subject.
(5 – 6 marks)
 Some organization;
main points are there
ut they are
disjointed; Minor
structuring issues.
(3 – 4 marks)
 Poorly organized; no
logical progression;
eginning and
ending are vague.
No structure. Lacks
substance. No
esearch noted.
(1 – 2 marks)
Conclusion 4 marks
 Very well composed
conclusion with a
clear and logical
evaluation with
conclusive and
persuasive
statements based on
an intelligent
assessment of the
evidence acquired.
(4 marks)
 Conclusion is logical
and an evaluation is
made, but there is
some lack of
evidence or depth of
analysis, which
would have improved
the overall
persuasiveness of
the report.
(3 marks)
 Conclusion is noted
and an evaluation is
presented, but it is
lacking in sufficient
detail or supporting
evidence. Requires
more analysis and
some proof-reading.
(2 marks)
 Conclusion is poorly
written with no
evaluation and no
logical coherence.
No evidence of
analysis. Poor effort.
(1 mark)
Spelling and
Grammar
1 mark
 No e
ors. Well proof-
ead. Clearly edited
and refined prior to
submission.
(1 mark)
 Only minor e
ors.
Needs some editing.
(0.75 mark)
 Numerous minor
e
ors. Not proof-
ead or edited
effectively.
(0.5 mark)
 Numerous major and
minor e
ors which
distract from
understanding and
clarity. Not proof-
ead. Not edited.
Academic English
level is low.
(0 mark)
Presentation 1 mark
 Very well formatted
with sub-headings,
page numbers,
appendices, and
effective use of
tables/graphics
Answered Same DaySep 23, 2020HI6026

Solution

Aarti J answered on Sep 27 2020
61 Votes
How is Enhanced Auditor Reporting being em
aced in Australia
Audit, Assurance and Compliance
Course Name
Course Date
Student’s Name
How is Enhanced Auditor Reporting being em
aced in Australia    6
Executive summary
Contents
Introduction
With the increasing investors relations, the investors are seeking for greater transparency for the auditor’s responsibilities as well as the financial reports of the company. For this the auditors have the added responsibility for the analysing the financial reports of the company. In this report, we will be analysing the reports of auditor and other auditor’s responsibilities for Woolworths company.
The auditing of the company has been done in accordance with the Australian Standards on Auditing or International equivalents.
Independence requirements
The auditor of Woolworths is Deloitte. As per the auditor’s independence declaration auditors have audited the annual report of the company as per the Corporation Act 2001 in respect to the auditing and the auditors have followed any applicable code of the professional conduct in relation to the auditing done by the auditors.
The company had audited the reports which includes the analysis of the Consolidated Statement of Profit or Loss, the Consolidated Statement of Other Comprehensive Income, the Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash Flows for the 52 weeks then ending on 24th June 2018. The auditors also audited the notes to the financial statements, including a summary of significant accounting policies, and the Directors’ Declaration.
As per the auditor’s opinion, the financial reports of the company gives a true and the fair view of the financial position and the company has prepared the reports as per the Australian Accounting Standards and the Corporations Regulations 2001.
The auditors had audited the reports in accordance to the Australian Auditing Standards in adherence to the Corporation Act 2001 and the ethical requirements of e Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code). The auditors have fulfilled all the responsibilities which were stated as per the corporation act 2001 as well as the ethical considerations.
Non-audit services
During the year, Deloitte have performed several services along with their statutory duties. The services provided by the auditors were as per the APES 110 code of ethics for professional accountants. These services included audit and assurance services related to debt ratings, regulatory reviews, financial due diligence and other sundry services.
Analysis of Auditor’s remuneration
    Auditors of the parent entity - Deloitte Touche Tohmatsu Australia
    
    2018
    2017
    Change
    % change
    Audit or review of the financial report
    2898
    3254
    -356
    -10.94%
    Regulatory and compliance related services
    147
    129
    18
    13.95%
    Other non audit services
    215
    421
    -206
    -48.93%
    Tax compliance services
    11
    108
    -97
    -89.81%
    Total
    3271
    3912
    -641
    -16.39%
    
    
    
    
    
    Other auditors
    
    
    
    Audit of review of the financial reports
    419
    305
    114
    37.38%
    Other non audit related services
    50
    83
    -33
    -39.76%
    Tax compliance services
    29
    154
    -125
    -81.17%
    Total
    498
    542
    -44
    -8.12%
    
    
    
    
    
    Total auditor's remuneration
    3769
    4454
    -685
    -15.38%
Key audit matters
The key audit matters are the matters which were...
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