Question attached1 HI6026 Audit, Assurance and Compliance Trimester 2 2018 Individual...

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Question attached1    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 her/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 rubric for marking criteria.   4. Assignment should be of 2,500 words. Please use “word count” and include this  in the report. Presented in Calibri font size 12.  5. Due date of submission: Week 9, Friday at 12.59 p.m. Topic: How is Enhanced Auditor Reporting being embraced 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 Embraced 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 Merran Kelsall, IAASB member and AUASB Chairman spoke to CPA  Australia about the uptake and impact of enhanced auditor reporting around  the globe.”   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- reporting   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  remuneration.    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. Correctly 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, briefly 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 brief 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  report. 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- risk-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     (4 marks)  Main Body of the Report      (8 marks)  Conclusion       (4 marks)  Spelling and Grammar   (1 mark)  Presentation     (1 mark)  Reference and Citation   (2 marks)   Total      20 marks   Refer to the Individual Assignment Rubric below  7    HI6026 - Individual Assignment Marking Rubric  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 brief  or has some errors.  (2 marks)    Synopsis is deficient  and poorly written.  Too brief.  (1 mark)  Main Body  Including  Introduction  8 marks      Excellent.  Well  organised. Main  points are logically  ordered; sharp sense  of structuring and  arrangement 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  correctly prioritised.  Some details do not  support the subject.  (5 – 6 marks)      Some organization;  main points are there  but they are  disjointed; Minor  structuring issues.  (3 – 4 marks)     Poorly organized; no  logical progression;  beginning and  ending are vague.  No structure. Lacks  substance. No  research 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 errors. Well proof- read. Clearly edited  and refined prior to  submission.  (1 mark)   Only minor errors.  Needs some editing.  (0.75 mark)    Numerous minor  errors. Not proof- read or edited  effectively.  (0.5 mark)     Numerous major and  minor errors which  distract from  understanding and  clarity. Not proof- read. 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

Aarti J · Accepted Answer

How is Enhanced Auditor Reporting being embraced in Australia
Audit, Assurance and Compliance
Course Name
Course Date
Student’s Name
How is Enhanced Auditor Reporting being embraced in Australia	11
Executive summary
Auditing and assurance services are important as they help in presenting the true opinion about the company’s performance as well as the annual reports of the company. The requirement of the enhanced audit report is important as it presents the detailed opinion of the auditor about the financials of the company as well as their opinion about the reporting of the company. For this we have conducted the auditor report evaluation of one of the biggest company of Australia Woolworths. During the analysis we looked over different aspects of auditing that was conducted by the auditors and has been reported in the annual reports of the company. The reports takes into consideration the audit opinion of the company which states that the company has presented a true and fair picture and has not done any misstatement of the financial statements. The report also presents the key audit matters and  the procedures that the auditors has taken to take care of the key audit matters which included the IT services, the accounting for rebate and Valuation of BIG W property, plant and equipment and consideration of onerous lease provisions.
Contents
Contents
Executive summary	2
Introduction	4
Auditing of Wesfarmers	4
Independence requirements	4
Non-audit services	4
Analysis of Auditor’s remuneration	5
Key audit matters	5
Audit procedures	6
Audit committee	7
Audit opinion	8
Difference in director’s and management responsibilities and auditor’s responsibilities	8
Material subsequent events	9
Assessment of effectiveness of the material information reported by the Auditor	9
Any material information missing	9
Conclusion	9
References	11
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 Wesfarmers company. (thorton, 2018)
The auditing of the company has been done in accordance with the Australian Standards on Auditing or International equivalents. 
Auditing of Wesfarmers
Independence requirements
The auditor of Wesfarmers is Ernst & Young. 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 30th June 2018. The auditors also audited the notes to the financial statements, including a summary of significant accounting policies, and the Directors’ Declaration. (Annual report, 2018)
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. (Annual report, 2018)
Non-audit services
Ernst & Young provided non-audit services to the company which was for around 1026 thousand. The major non-audit services provided by the company was the services related to tax compliance. The non-audit services that was conducted by the company included the services which did not involve reviewing or auditing the auditor’s work as well as it was subject to the corporate governance procedures and policies that was adopted by the company. 
Analysis of Auditor’s remuneration
	Auditors of the parent entity - E&Y
	Audit services
	2018
	2017
	Change
	% change
	Audit and review of financial reports
	
	
	
	
	Ernst & young (Australia)
	5761
	5723
	38
	0.66%
	Ernst & young (Overseas)
	812
	702
	110
	15.

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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