ACCM 4400 Auditing & AssuranceTrimester 3, 2017: AssignmentPART 1: (40 marks – Assessable value 10 marks)Review the audited annual reports including financial statements presented to the shareholders...

ACCM 4400 Auditing & AssuranceTrimester 3, 2017: AssignmentPART 1: (40 marks – Assessable value 10 marks)Review the audited annual reports including financial statements presented to the shareholders inrespect of the two companies noted below and answer the questions.(A) CBA Ltd: Financial year ended 30 June 2017: Annual Report(B) JB Hi-Fi Ltd: Financial Year ended 30 June 2017: Annual ReportQuestions to be answered by the team or group:Assume that your audit team is responsible for planning the audits for both CBA andJB Hi-Fi; discuss your strategies in relation to the questions noted below –1. (A). Identify at least three (3) inherent risks that you would have to consider for each company inthe audit planning phase and justify your answer.(B). Which audit procedures and/or tasks would you have planned to carry out in response to theinherent risks identified by you in (A) above? See the required format for your answers belowSuggested Format for Question 1(A) and (B):Inherent Risk Justify YourAnswerAssertion and LedgerAccount(s) ImpactedAudit Procedure/Task2. (A). Carry out an analytical review on the financial statements of these companies in the planningphase and identify areas of concern (high risk or problem areas) or comfort. Identify at leastthree (3) points for each company and justify your answer.(B). Which audit procedures and/or tasks would you have planned to carry out in response to thehigh risks or problem areas identified by you in (A) above? Alternatively, in relation to which areawould you have minimised your evidence gathering procedure? See the required format for youranswers belowSuggested Format for Question 2(A) and (B):AnalyticalReview –Area ofConcernIdentifiedJustify YourAnswerAssertion and LedgerAccount(s) ImpactedAudit Procedure/TaskACCM 4400 Auditing & AssuranceTrimester 3, 2017: Assignment3. In relation to corporate governance, research and justify your answer to the following questions-(A) Do the above companies have any process relating to corporate governance? Under whichsection of the annual report would you expect to find information on it?(B) Do the companies have an audit committee and does it have the correct composition?(C) In your team’s opinion, are audit committees of benefit to the auditor, the company, theauditing profession and/or society as a whole?PART 2: (20 Marks – Assessable Value 5 Marks: not more than 350 words)The website of Chartered Accountants Australia and New Zealand (CA ANZ) carries many articles onAudit Quality which can be found at the link given below:https://www.charteredaccountantsanz.com/member-services/technical/audit-and-assurance/audit?qualityYour audit manager has requested your team to consider the concept of “Audit Quality” and how itmay impact on the audit of historical financial information.In your own words (as a team) comment on the concept of Audit quality and as a team conclude asto how important it is or isn’t when you carry out an audit; justify your answer. Please note it must beyour team’s opinion not a reproduction of any legislation, the article or a standard.REQUIRED:1. Complete the questions in Parts 1 and 2 and submit your answers electronically using the linkon the student portal under assessments overview and submission. Note to include the names andstudent ID numbers of the team members and submit the assignment cover sheet for each teammember but submit just the one answer for your team under the team leader (identified in theother team members cover sheet).2. Part 3: Team Meetings - As a team you will conduct meetings and will have had guidance onhow to conduct meetings using an agenda and taking minutes etc. The team should have aminimum of three meetings (the team may have as many meetings as they need to) and shouldmaintain agendas and minutes of those meetings. A copy of these documents should be attachedto your team submission. Please make sure that all members of the team sign the minutes of themeetings in agreement to their accuracy. A pro forma is attached to this assignment forreference3. Part 4: Group Presentation – prepare and present a group presentation of 10 minutes (13minutes for 4 members) on all or some of the material you have researched in parts 1 and/or 2above. All members of the group should be part of the presentation. Questions will be asked of thegroup during and/or after the presentation to test your understanding of the material. Presentationsthat exceed the time limit may be penalised.Summary of Marks:Parts 1 and 2: Written response 15 marksPart 3 Teamwork - minutes 5 marksPart 4 Team presentation 5 marks25 MarksA detailed marking sheet relating to requirements 1 and 2 and a marking rubric for requirement 3 isalso available and you should check them to ensure that you have followed all the guidelines forpresenting your work and are aware of how you can score marks