All the answers need to be done in excel sheet in orange cell with the exact formula and all the...

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All the answers need to be done in excel sheet in orange cell with the exact formula and all the calculative information in there in excel sheet. Also small report is to note down from the calculation. All the information is in below attached file.Auditing & Assurance MAC005 Trimester 2 2020 ASSIGNMENT Objective MAC005 covers a range of important theory and practice of issues in Auditing & Assurance. The main purpose of this assessment is to provide students with the opportunity to extend their understanding and practical application in a key audit skill (Analytical Review Procedures) which are used throughout an audit and in practice have been deemed to be effective in highlighting potential earnings management issues. The assessment will allow students the opportunity to prepare a “Key Audit Matters” report further enhancing their knowledge by applying the theory learnt to develop a practical document prepared on many audit engagements. You will acquire a range of excel skills such as writing formulae to perform accounting analytics and summarising your results using pivot tables, graphs and slicers. Those skills will enable you to prepare an accounting analytics dashboard which will enable reviewers to understand your approach, analysis and conclusions.  You will be required to analyse the financial information of ABC Learning over the period 2000 - 2007 using Analytical Review techniques such as DuPont Analysis, Common Size, Trend Analysis and the Beneish M-Score models to identify: · any potential earnings manipulation  · in which accounts and  · for which years. Once you have completed the analytical procedures you are required to submit a “Key Audit Matters Report” outlining the key material accounts which will require further investigation and the audit approach / procedures / assertions you believe will be appropriate given your analysis.  Students will be required to act as an Audit Senior involved in the Audit of ABC Learning who is completing the Audit Planning and is responsible for the effective Analytical review of the historical financials covering the years 2000 - 2007. The results of your review will need to be summarised for your Audit Manager highlighting areas of concern and recommendations in terms of changes to the Audit Approach.  Section 1.0	Assessment Information Marking Criteria:	A marking rubric will be made available in the Moodle site.  Length:	1500-2000 words  Weighting:			25% Assessment due:		31 July 2020 11:00pm (Friday in Week 11) Type of Collaboration:   	Individual Assessment  Style and format:	Submissions will be in the form of a report – specifically a Key Audit Matters Report. This assessment task must be word processed using Arial 11 font, double spaced with margins of 2cm. 	UBSS uses the Harvard method of referencing. 	Common Report Structure Guidelines: 	Proposed Structure 1.0	Introduction · General statement: a sentence or 2 to orient the reader to the topic, which sets the context for the topic in a broad way · The purpose of the report · The auditing themes that are being explored · The standards / criteria that are being explored / applied · The reason why you are conducting this analysis (its significance) 2.0 Ratio Analysis  · What analysis was conducted i.e. summarise the nature and type of Ratio analysis conducted. · What were your key findings from the ratio analysis · What are the auditing implications from the ratio analysis · Are there any other implications · One main point or key idea per paragraph · Should link to the key areas of Audit Focus 3.0 Risk Assessment and Areas of Audit Focus · This section summarises your risk assessment for each area of audit focus by identifying the account / area that is at risk, your assessment as to why it is at risk (your perspective based on the literature reviewed and ratio analysis conducted) and the audit work that is planned. It emphasises your JUDGEMENT. · This section can be provided in tabular form as suggested below: 	Areas of audit Focus (Account / Area) 	Your Perspective (Why)  	Audit Work to be performed (Approach & Assertions covered) 	 	 	 4.0	Conclusion · Summarises the main points or arguments · Restates the major point of view (your answer to the question) · Includes no new information · Should not need references Appendices (These are optional and can include any additional findings / materials that you believe are relevant) References (Harvard Anglia compliant, if required) Guidelines · You may find it useful to use the above structure as a starting point, however it is not mandatory · Answer the question directly · Develop an argument logically and coherently · Ensure all your arguments are based on sound evidence · Essay illustrates wide reading and a good understanding of the topic · Ensure all your arguments are concise and clear · Please refer to the attached RUBRIC (refer section 3) to self-assess how well your essay demonstrates the attributes of the targeted outcomes. Assessment Submission:	This assessment has been set up to be checked by Turnitin, a tool which helps you check whether you have reference correctly.  You can submit your assessment report to Turnitin prior to the due date and Turnitin will be you an originality report. You may then make any changes that may be required and resubmit your final version by the due date. IMPORTANT Also the EXCEL SPREADSHEET with all relevant analytical review procedures conducted must be submitted via MOODLE (not Turnitin).  Please only fill in the ORANGE CELLS with the correct EXCEL FORMULA (numbers alone will not be accepted).  This will form 50% of your “Analysis” mark which is weighted at 30% (refer Rubric Section 3) Section 2.0	Other Important Information 2.1 	Plagiarism Taking another person’s ideas, words or inventions and presenting them as your own without acknowledging your sources (citing or referencing), is plagiarism. Paraphrasing or rewording another person’s work, without acknowledging its source, is also plagiarism. If you are identified with plagiarism assessment mark will be zero. 2.2	Referencing  Correct referencing is important for two main reasons. The first is to enable the reader to access source material you have relied upon, should they care to. The other is to ensure that you have properly recognized the contribution of the work of others to your assignment. If you do not do this properly, you are engaging in plagiarism—the theft, intentional or otherwise, of the intellectual or creative work of others.  UBSS will not tolerate plagiarism. It is therefore important that you understand how to avoid it. It is important that you adopt a consistent, and adequate, referencing system. Reference system to be used Harvard Anglia. Section 3.	Analysis Rubric (100 marks reduced to 25) 	Criteria 	HD (100%) 	HD (>85%) 	Distinction (75-84%) 	Credit (65-74%) 	Pass (50-64%) 	Fail (40-50%) 	Fail (

Sweety · Accepted Answer

KEY AUDIT MATTER REPORT
 1.0  INTRODUCTION
· Audit of financial statement of ABC Learning has been conducted. The financial year covered are 2000-2001, 2001-2002, 2002-2003, 2003-2004, 2004-2005, 2005-2006 and 2006-2007. Accounting Reports i.e., financial statement of the past year (2000 to 2007) is analyzed and reviewed to gauge past and present performance. 
·  This report intend on communicating 2 basic things-:
·  How the financial statement was audited or analyzed
·  Result of analysis-Once the analysis is completed the conclusion drawn is mentioned in this report. The main focus is to highlight the key material accounts that need further investigation. This will assist in improving future financial performance.
 
· The source of information based on which analysis is done is the financial statement provided by the management. Management has provided financial statement of seven financial year’s (i.e.  2000 to 2007). The financial Statement provided by the management include 
·  Income statement
· Balance Sheet
· Cash flow statement
· For analysis of financial performance various analytical review techniques are performed. The way the techniques performed , relevant calculation and chart representation are all explained in detail in the excel sheet which is furnished in addition to this “key audit report” These techniques performed for analysis conducted are as:
:
· DuPont Analyses
· Common size Analyses
· Trend Analysis
· Beneish M-Score Model
· Ratio Analysis
· YOY (Year on Year) Comparison is also done. 
· The standard considered and kept in mind ( i.e. on the basis of which the analyses was conducted) while performing the analysis is:
· ISA 520 Analytical Procedures.
               
· Financial statement analysis is of great importance for both internal and external users. The significance  of conducting analyses are as follow:-
· Management of the company is responsible taking decisions and formulating plans and policies for the future. Financial statement provides assistance in evaluating entities performance and effectiveness of their action to realize company’s goal in the past. 
· It assists in determining the type of asset owned by the entity and the liabilities which are due to the entity. It also provides information about the cash position company is holding, studying reasonability of stock and debtors and how much debt company has in relation to equity.
· It assist in determining whether financial condition of the firm is sound, evaluating the internal control system, whether the resources of the company are used in most efficient manner and finally to investigate the future aspect of enterprise.
· It assist in judging probability of the firm continued ability to meet all its financial obligation in the future, firms ability to meet claims of creditors over a short period of time and also other short term obligations.
· It assist in assessing the relationship between various source of fund, determining credit risk, deciding terms and conditions of a loan if sanctioned, interest rate and maturity rate.
· It also helps in predicting bankruptcy and failure probability of the entities.
· It assists in studying relationship among various financial factors in a business, which is disclosed in the financial statement and help in assessing trends of theses factors.

Auditing & Assurance MAC005 Trimester XXXXXXXXXXASSIGNMENT Objective MAC005 covers a range of important theory and practice of issues in Auditing & Assurance. The main purpose of this assessment is to...

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