HI6026 Audit, Assurance and Compliance Group Assessment Details and Submission Guidelines Trimester T1 2021 Unit Code HI6026 Unit Title Audit, Assurance and Compliance Assessment Type Group Assignment...

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HI6026 Audit, Assurance and Compliance Group Assessment Details and Submission Guidelines Trimester T1 2021 Unit Code HI6026 Unit Title Audit, Assurance and Compliance Assessment Type Group Assignment Assessment Title Analytical procedure, Audit Risk, and Audit Committee Effectiveness Purpose of the assessment (with ULO Mapping) Students are required to explain the analytical procedure, audit risk and application of audit committee effectiveness from your selected company. Students are required to analyse the causes of audit risk by understanding company’s analytical procedure and the relevant issues from their selected company’s and then specify whether their selected company’s follows audit committee guideline suggested by ASX CGC guideline to ensure professional integrity, good governance and reputation. Learning Outcomes: • Evaluate the economic and legal basis for auditing and the applicable auditing standards and reporting requirements • Analyse and communicate knowledge of the auditor's professional judgement, legal and ethical responsibilities to their clients and third parties • Assess audit strategies including the evaluation of business risk and internal controls • Apply audit concepts and processes to gather evidence and formulate judgments with respect to the underlying information • Weight 40% of the total assessments Total Marks 40 Word limit 3,000 words ± 500 words Due Date Group Formation: Please form the group by self-enrolling in Blackboard. There should be a maximum of 4 members in a group—email XXXXXXXXXX forany issues with self-enrolling into groups. Assignment submission: Final Submission of Group Assignment: Week 10, Friday at 11:59 pm. Late submission incurs penalties of five (5)% of the assessment per calendar day unless an extension and/or special consideration has been granted by Student Services of your campus prior to the assessment deadline. HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6026 Audit, Assurance and Compliance Submission Guidelines • All work must be submitted on Blackboard by the due date, along with a completed Assignment Cover Page. • The assignment must be inMS Word format, single spacing, 12-pt Arial font and 2cm margins on all four sides of your page with appropriate section headings and page numbers. • All reference sources must be provided using Harvard referencing style. Page 2 of 6 HI6026 AUDIT, ASSURANCE AND COMPLIANCE Assignment Specifications Purpose Students will have to research relevant academic literature, including related organisation websites andwrite in-text citations in this assignment. Additionally, they will demonstrate understanding and critical evaluation of the Australian financial governance reporting environment and its current regulatory framework, and recommend future directions to the Australian governance principles reporting regulators. Required Task: Part A: Analytical Procedure (15 marks) Obtain a copy of a recent annual report XXXXXXXXXXfrom ASX Top 300 listed companies list (most companies make their annual reports available on their website). Perform analytical procedures of the Statement of Financial Position and of Financial Performance over the two years (2018 and 2019) using appropriate ratios and/or metrics. Required: Measure and discuss income statement, balance sheet and cash flow ratios from your selected company and How does this affect your assessment of materiality, detection risk and overall auditRisk? Provide a brief explanation in the report. This should be presented in a table format. (15 marks) Part B: Audit Committee Effectiveness (20 marks) 1. “Audit committees do not prepare financial reports, nor do they conduct audits. But they have an essential role to play in ensuring the integrity and transparency of corporate reporting”. Explain this statement? Who should be members of the Audit Committee? Is there an association between Audit committee effectiveness and audit quality after IFRS adoption? (10 marks) 2. Explain your selected company’s (same selected company from part A) and prepare the following responses about the application of audit committee effectiveness recommended by ASX Corporate Governance Council (CGC) principles using Corporate Governance Principles and Recommendations (4th Edition) was released on 27 February 2019?(10 marks) i. Members of the audit committee meet all applicable independence requirements. ii. The audit committee demonstrates appropriate industry knowledge and includes a diversity of experiences and backgrounds. iii. Audit committee members have the appropriate qualifications to meet the objectives of the audit committee ‘s charter, including appropriate financial literacy. iv. Discuss about audit committee size and members profile. v. Discuss about meeting arranged by audit committee chairman and whether member participate actively? vi. The audit committee monitors compliance with corporate governance regulations and guidelines. Source: https://www.asx300list.com/. You can choose any company on the list. You DO NOT need any approval from the Unit Coordinator. Page 3 of 6 HI6026 AUDIT, ASSURANCE AND COMPLIANCE The assignment structure must be asfollows: 1. HolmesInstitute Assignment Cover Sheet – Full Name, Student No., Contribution. 2. 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. 3. Contents Page – This needs to show a logical listing of all the sub-headings of the report’s contents. Note this is excluded from the total word count. 4. 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. 5. Main Body Paragraphs with numbered sub-headings – Detailed information which elaborates on the main pointsraised 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. 6. Conclusion – A logical and coherent evaluation based on a thorough and an objective assessment of the research performed. 7. Appendices – Include any additional explanatory information which is supplementary and/ or graphicalto help communicate themain ideasmade in the report. Referto the appendicesin the main body paragraphs, as and where appropriate. (Note this is excluded from the total word count. Page 4 of 6 HI6026 AUDIT, ASSURANCE AND COMPLIANCE Group Formation and Group Assignment To ensure that all students participate equitably in the group assignment and that students are responsible for the academic integrity of all components of the assignment. You need to complete the following Group Assignment Task Allocation table, relevant evidence (authenticity of your assignment) which identifies which student/students are responsible for the various sections of the assignment. Assignment Section Student/Students This table needs to be completed and submitted with the assignment as it is a compulsory component required before any grading is undertaken. Students that are registered in a solo group are not required to fill this table. Both assessment items must be submitted on Blackboard. The written assignment must be in a report format and submitted through safe-assign prior to final submission. The originality percentage should be as low as possible. The written submission must be double-checked, edited and rephrased if the originality percentage and plagiarism risk is noted as high, as per safe-assign. Marking Criteria Group Assignment Marking Criteria Weighting Executive Summary 2% Introduction and Main Body of the Report 35% Overall Presentation (Report presentation, Correct referencing, consistency) 3% Total Weight 40% Page 5 of 6 HI6026 AUDIT, ASSURANCE AND COMPLIANCE Academic Integrity Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard. Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment. Table 1: Six categories of Academic Integrity breaches Plagiarism Reproducing the work of someone else without attribution. When a student submits their own work on multiple occasionsthis is known as self-plagiarism. Collusion Working with one or more other individuals to complete an assignment, in a way that is not authorised. Copying Reproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence. Impersonation Falsely presenting oneself, or engaging someone else to presentas oneself, in an in-person examination. Contract cheating Contracting a third party to complete an assessment task, generally in exchange for money or other manner of payment. Data fabrication and falsification Manipulating or inventing data with the intent of supportingfalse conclusions, including manipulating images. Source: INQAAHE, 2020 Page 6 of 6 HI6026 AUDIT, ASSURANCE AND COMPLIANCE Marking Rubric Excellent HD Very Good D Good C Satisfactory P Unsatisfactory F Executive Summary (2 marks) Very effectively written synopsis with clear communicatio n ofthe main points ina concise paragraph. Competently composed a strong synopsis. The main points are communicated well. Synopsis is well written with all the expected points raised. Synopsis is clearly written, but it is brief or has some errors. Synopsis is deficient and poorly written. Too brief. Main Body Excellent. Well There are valid There are valid Some Poorly organized; Including organised. Main points raised with points raised, organization; no logical Introduction points are logically a good argument paragraphing is main points progression; (35 marks) ordered; sharp / thesis noted, and the are there but beginning and sense of statement, points in the they are ending are vague. structuring and paragraphing is introduction are disjointed; No structure. arrangement of key noted, and the explained in Minor Lackssubstance. information. points in the more detail structuring No research Supporting details introduction are with supporting issues. noted. are specific to the explained in more evidence. main points and detail with adequate facts and supporting other evidence is evidence. provided and wellarticulated. Referencing and Citation (3 marks) References are consistently correct using Harvard style. Nomissing citations.A strong reference list with relevant andcredible sources used. Evidence of extensive research. References are consistently correct using Harvard style. No missing citations. References used are good, but not extensive. Generally correct referencing using Harvard style. More references required. Some References are used, but not used consistently. Not enough research done. References are missing or do not comply with correct referencing style.
Answered 5 days AfterMay 22, 2021HI6026

Answer To: HI6026 Audit, Assurance and Compliance Group Assessment Details and Submission Guidelines Trimester...

Tanmoy answered on May 26 2021
57 Votes
Assessment Title: Analytical procedure, Audit Risk, and Audit Committee Effectiveness
Unit Code: HI6026
Name: Ranjib Maharjan
Executive Summary
In this discussion we will try to focus on the financial statement analysis of Coles Ltd and also see how the audit committee of the company performs for the benefit of the shareholders and the corporation as a whole. For this we will take the Form 10-K of 2018 and 2019. We will try to analyse the income statement, balance sheet and the cash flow statement of Coles Ltd step by step. This will help us in evaluation of the performance of the company and decide on the future strategies. It will also help the potential investors to have a glance on the financial analysis based on which they can go for investments in Coles Ltd. Finally, it will be the audit committee procedures, plan and policies adopted for the benefit of Coles Ltd in the f
uture.
Contents Page
Introduction……………………………………………………………Pg 1
Analysis
Part A……………………………………………………………………Pg 2 -8
Part B…………………………………………………………………....Pg 8 – 11
Conclusion………………………………………………………………Pg 12
Appendix………………………………………………………………...Pg 13-17
References……………………………………………………………….Pg 18

Introduction
Coles Ltd is an Australian chain of supermarkets, retail segment and customer service departmental stores which is headquartered in Melbourne, Australia. Coles is an established supermarket chain founded by Coles Myers Group in the year 1914. Previously it was named as Coles’s variety stores and presently its slogan is “value the Australian way”. There are more than 2400 stores of Coles which deal in supermarket, liquor and departmental goods. The revenue of Coles Ltd as on 2019 was $38464 million and the number of employees serving the customers of Australia is 112269. Coles Ltd has presently demerged itself with Wesfarmers Ltd which deals in retail operations, chemical, fertilizers and in industrial and safety products in Australia. There are eight generic private label
ands which are under Coles Ltd.
Analysis
Part A
The financial status of the Coles Ltd can be evaluated based on the financial statement for the fiscal year 2018 and 2019. The financial statement analysis will include the income statement, the balance sheet and the cash flow statement Coles Ltd. These financials will be available in the Appendix 1 below. We will try to discuss on each financial statement which will help us to know whether Coles Ltd is performing well or not.
Income statement analysis
As per the income statement of 2019 it can be observed that the net revenue of Coles Ltd is at $38464 million compared to the revenue of the previous year 2018 which is $39145 million. Thus, there has been a negative growth rate in the revenue of Coles Ltd in 2019 compared to the previous year 2018.
The cost of sales for Coles Ltd as on 2019 was at $29893 million as compared to $30769 million in 2018. There was a negative rate of growth at -2.85% in 2019 compared to 2018. This was mainly due to increase in manufacturing cost of Coles in 2019. This is not a positive sign for Coles and there must be strategies executed by the Coles management in order to reduce the cost of production in the future.
It was gain from equity investments to the amount of $5 million which resulted in earnings for Coles in 2019. But the rate of growth of this item was negative at -69% in 2019 compared to the previous year. In 2018 the equity interest was at $16.3 million. The equity investment earnings by Coles Ltd in 2019 were in the form of interest from flybuys and were only $5 million. Coles’s share of net profit on this amount was 50%.
The net income of Coles Ltd in 2019 was observed to be at $1078 million as compared to $1023 in 2018. The rate of growth of net profits in 2019 was observed to be at 5.38% compared to 2018. This was surprisingly a positive indicator for Coles because even after a negative growth in the revenue and gross profit in 2019 compared to the previous year 2018, the net profits of Coles observed a positive growth in 2019.
The profit for Coles was mainly due to its new stores opened in various convenient centers throughout Australia and efficient supply chain management. There are more than 2400 stores of Coles in the form of supermarket, convenient centers and dealing in liquor. From these stores Coles achieved sales revenue of $38176 million and net profit of $1078 million from its continuing operations. Also, the net profits of Coles in 2019 was mainly due to lower income tax which was driven by non-assessable accounting gain arising from the establishment of QVC and due to net credit to income tax expenses from the re-set of the tax cost base of the groups assets which was due to Coles decision to form an income tax consolidated group.
· The statutory revenue growth of Coles in the supermarket was 3.2% and that of liquor market was 0.8%.
· The earnings before interest and tax were high for the first time in three years due to enhanced sales and superior gross margin.
· The online sales of Coles grew by 30% and generated $1.1 billion in terms of revenue in 2019 (Coles Group - Annual Report, 2019).
Balance Sheet analysis
The balance sheet of Coles Ltd as on 2018 and 2019 can be evaluated based on the following points:
In 2019 there was a decrease in the cu
ent assets of the company compared to the previous year 2018. The cu
ent asset of Coles in 2019 was observed to be at $3406 million compared to $4725 million in 2018. This was a decrease of -28% in the cu
ent assets in 2019 against the previous year. This signifies that Coles Ltd might face trouble while paying off the short term liabilities on time in 2019.
There was a negative growth in total assets at -22.03% in 2019 for Coles Ltd compared to 2018. There was a decline in the total assets for Coles Ltd which was mainly due to decrease in the value of plant, property and equipments, buildings, land and improvements, machinery and equipments, accumulated depreciation, goodwill and other intangible assets. The decrease in total assets of Coles states that company is trying to enhance its growth by purchasing the assets. This signifies that Coles Ltd is selling its assets or by consuming more of it in the business operation process. Basically there are two reasons due to which there is a decline in the value of the total assets; these are due to selling or abandonment of assets and due to loss in the value of the assets. (Chron Contributor, 2020).
The cu
ent liabilities of Coles Ltd signify that in 2019 there has been a negative growth of -52% as compared to the figures of 2018. The negative growth in cu
ent liabilities at this rate implies that Coles Ltd has started to pay off its short term bo
owings in the form of decrease in accrued payroll, accounts payable, income tax payable and other cu
ent liabilities. Short term debts are generally bo
owed by companies from banks or financial intuitions and are repayable within a period of 1 year.
Finally, there has been a decline in the total liabilities, temporary equity and stockholder’s equity in 2019 for Coles Ltd compared to 2018. The rate of negative growth was at -22% in 2019 compared to 2018. The negative rate in growth in Coles was mainly due to decrease in the total liabilities in 2019 compared to the previous year 2018. But, there was an increase in the total equity in 2019 at 3% compared to the previous year. This signifies that Coles Ltd is performing well above its benchmark and is trying to operate its business through equity rather than by bo
owing loans and advances from external sources.
Cash flow statement analysis
As per the Cash flow statement of Coles Ltd it can be evaluated how the company spends its money and from where it receives it funds. In simple terms it’s the analysis of the cash inflow and cash outflow of Coles Ltd based on the financial figures of 2018 and 2019. As per the Coles’s cashflow statement it can be stated that the cash flow from operating activities have increased to $2275 million in 2019 compared to $1910 million in 2018. This illustrates that the cash flow from operating activities which is the net amount of cash inflows and outflows during the day to day business operations. Thus, cash flow from operations signifies the viability of entity’s cu
ent business plan and operations. The increase in the cash flow from operating activities for Coles in 2019 compared to 2018 signifies that Coles’s cash flow from business operations is positive and has grown by 19    %.
The cash flow from investing activities signifies the outflow of cash for long term assets like land, equipments and buildings and the cash inflows from the sale of assets, business and the securities etc. Most of the investing activities are cash outflows as most of the organizations goes with long term investments for future business growth and operations. For Coles Ltd, the cash flow...
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