HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6026 Audit, Assurance and Compliance Group Assignment T XXXXXXXXXX Group Assessment Details and Submission Guidelines Trimester T2 2019 Unit Code HI6026...

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HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6026 Audit, Assurance and Compliance Group Assignment T2 2019 1 Group Assessment Details and Submission Guidelines Trimester T2 2019 Unit Code HI6026 Unit Title Audit, Assurance and Compliance Assessment Type Group Assignment and Group Video Presentation Assessment Title Auditors and Corporate Governance Purpose of the assessment (with ULO Mapping) Students are required to research the ASX Corporate Governance Principles and Recommendations and discuss how adoption of each ASX Corporate Governance principle, by the client company, will affect the auditor’s risk assessment process, the audit approach, the audit strategy and audit evidence. Learning Outcomes: 1. Demonstrate an understanding of the auditor's professional, legal and ethical responsibilities to their clients and third parties (ULO 2) 2. Understand the audit planning procedures, evaluate the business risk and assess the internal control (ULO 4) 3. Prepare auditing procedures for transactions and balances by conducting control and substantive tests (ULO 5) Weight 30% of the total assessments Total Marks 30 Word limit Maximum 3,000 words Due Date Week 9 Submission Guidelines  All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page.  The assignment must be in MS 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.  Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style. Page 2 of 6 HI6026 Audit, Assurance and Compliance Group Assignment T2 2019 2 Assignment Specifications Purpose This assignment aims to enhance students’ critical thinking skills and higher order application abilities by researching the ASX Corporate Governance principles. Students will need to evaluate what the likely implications are for the auditor when the client company has adopted the ASX Corporate Governance principles in full. The assignment structure must be as follows: 1. Holmes Institute Assignment Cover Sheet – Full Name, Student No., Campus, Session No. 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 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. 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 graphical to help communicate the main ideas made in the report. Refer to the appendices in the main body paragraphs, as and where appropriate. (Note this is excluded from the total word count.) Page 3 of 6 HI6026 Audit, Assurance and Compliance Group Assignment T2 2019 3 Assignment Topic – Auditors and Corporate Governance Read the following extract from the Australian Accounting Review (AAR), which is a well-known and influential Accounting journal. As stated: “Corporate governance is of growing importance in Australia, New Zealand and all over the world. Corporate governance interacts with auditing and it is useful to understand how corporate governance and auditing affect companies.” Source: Hay, David & Stewart, Jenny & Redmayne, Nives. (2017). The Role of Auditing in Corporate Governance in Australia and New Zealand: A Research Synthesis: Auditing and Governance in Australia and New Zealand. Australian Accounting Review. 27. 10.1111/auar.12190. (Australian Accounting Review 27(1) · August 2017) Required: With reference to the “ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations”:  Identify and explain each of the eight ASX Corporate Governance principles and recommendations  Briefly explain what the likely effect of full adoption of each corporate governance principle and recommendation will have for the company  Explain how full adoption of the eight ASX Corporate Governance principles is likely to influence: o Risk assessment process o Audit approach o Audit strategy o Audit evidence Resources and Reference Links: 1. Textbook: Gay & Simnett, Auditing & Assurance Services in Australia, 6th Edn, McGraw Hill Education, 2017 2. https://www.cpaaustralia.com.au/podcast/contemporary-perspectives-on-corporate- governance 3. https://asic.gov.au Group Formation and Group Assignment Students are required to work on the assignment in groups of 4 - 6, produce a group report and a short video presentation of approximately 10mins. Group membership will need to be communicated to the local campus lecturer in writing to the session lecturer by week 6. 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 Medium or High, as per safe-assign. https://www.researchgate.net/journal/1035-6908_Australian_Accounting_Review https://www.researchgate.net/journal/1035-6908_Australian_Accounting_Review https://asic.gov.au/ Page 4 of 6 HI6026 Audit, Assurance and Compliance Group Assignment T2 2019 4 Video Presentation Students must use power-points slides with clear dot-points, noting the key information. The video presentation should be considered a professional business presentation, which would be viewed by colleagues in the Auditing profession. All students in the group must participate in the video or marks will be deducted. Video presentations should not exceed the 10mins time limit or marks will be deducted. Impressive video presentations may be played in class provided that consent is given. Marking Criteria Group Assignment Marking Criteria Weighting Executive Summary 3% Main Body of the Report 10% Conclusion 3% Punctuation, spelling, grammar, word choice, academic English expression 2% Report presentation, formatting and effective use of any additional materials 1% Correct referencing, In-text citation, acknowledgement of sources, consistency 1% Weight 20% Video Presentation Marking Criteria Weighting Effective verbal communication of the key content in a professional manner. 4% Effective use of power-point slides with clearly legible text in concise statements and effective coverage of the content in a professionally produced presentation, which is engaging and logically structured. 4% Total length of the video presentation is within the 10mins limit and effective participation of all group members is noted. 2% Weight 10% Total Weight 30% Page 5 of 6 HI6026 Audit, Assurance and Compliance Group Assignment T2 2019 5 Marking Rubric Excellent Very Good Good Satisfactory Unsatisfactory Executive Summary (3 marks) Very effectively written synopsis with clear communication of the main points in a concise paragraph. (3 marks) Competently composed a strong synopsis. The main points are communicated well. (2.5 marks) Synopsis is well written with all the expected points raised. (2 marks) Synopsis is clearly written, but it is brief or has some errors. (1.5 mark) Synopsis is deficient and poorly written. Too brief. (0 - 1 mark) Main Body Including Introduction (10 marks) Well organised contents. 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. (8.5 - 10 marks) There are valid points raised with a good argument / thesis statement, paragraphing is noted, and the points in the introduction are explained in more detail with supporting evidence. (7.5 – 8.5 marks) There are valid points raised, paragraphing is noted, and the points in the introduction are explained in more detail with supporting evidence. (6.5 – 7.5 marks) Some organization; main points are there but they are disjointed; Minor structuring issues. (6.5 – 5 marks) Poorly organized; no logical progression; beginning and ending are vague. No structure. Lacks substance. No research noted. (0 – 4.5 marks) Conclusion (3 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. (3 marks) Conclusion is well written as a concise summary which logically evaluates the main argument with evidence used and examples. (2.5 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
Answered Same DaySep 01, 2021HI6026

Answer To: HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION HI6026 Audit, Assurance and Compliance Group Assignment...

Priyanka answered on Sep 11 2021
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HOLMES INSTITUTE ASSIGNMENT
NAME:
STUDENT NO:
CAMPUS, SESSION NO:
EXECUTIVE SUMMARY
Auditing system requires corporate governance in the system to direct a company in management and administration. Corporate governance helps to an auditor to understand the link or relationship between shareholders, board of directors and other stakeholders. Corporate governance means different things to different people. But to all, corporate governance is a referring to an end, the conclusion to high term shareholder, and importantly, stakeholder benefit. Proper corporate governance regulations include some negative and s
erious issues. Some includes; indirectly supervise the activities of the business, analyze and approve company’s financial expectations, corporate strategies and objectives, advice and guide top management, identify and give idea about candidates to shareholders for selecting directors and review systems to comply with laws and regulations along with the policies, appoint and remove CEO
By knowing the principles and recommendations of corporate governance, proper strategies and audit approaches can be undertaken to supervise the actions and decisions of the clients and companies. The audit procedures must be conducted in an ethical and compliant manner which would include sensitive information of the shareholders and the opinion of the auditor is very crucial in terms of financial statements as well. The disclosure of the information must be properly complied as per corporate governance principles and risk processes.
CONTENTS
INTRODUCTION……………………………………………….1
ASX CORPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATONS…………………………………………3
EFFECT OF THE PRINCIPLES ON COMPANIES…………9
INFLUENCE ON RISK ASSESSMENT PROCESS……….11
INFLUENCE ON AUDIT APPROACH……………………....12
INFLUENCE ON AUDIT STRATEGY……………………….13
INFLUENCE ON AUDIT EVIDENCE………………………..14
CONCLUSION…………………………………………………14
REFERENCES…………………………………………………16
INTRODUCTION
The major part of auditing and compliance process is corporate governance. The direction and supervision through corporate governance provides a space for improvement in financial reporting which would help to improve the capital market situation of the company.
If a corporate has to sustain, increase in size, and wants to be included, its future should concentrate on the methods and means of growing as an authoritative and responsive corporate member. The audit committee which consists of various audit professionals’ should have a clear idea about the principles and recommendations and also establishment of internal control in process of financial reporting. Many commissions on corporate governance have suggested set up of special committees for:
1. Nomination
2. Remuneration
3. Auditing
When the above committees are consisted of independent directors elected due to their experience, professional expert in their own fields, and proven technical know-how, there are chances to take valid decisions and provide the long term expectations of the company. The combination of the board is a major factor. Professionalism of family companies should start with the combination of the board. Combining the roles of CEO and Chairperson prevalent in Australia and other related places result in conflicting interests and decision making.
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In UK and Australia the CEO cannot be the head of the board. CEO is to head the top management and the chairperson is to head the board and more over it may be too hectic to deal both positions by one person.
The audit professionals must be aware of the various audit approaches and strategies. The reporting issues, risk assessment procedures and regulations must be clearly known to the audit committee which has been fully mentioned under the corporate governance. Accordingly the new practices and auditing approaches can be implemented in order to assess the internal control.
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ASX CORPORATE GOVERNANCE PRINCIPLES AND RECOMMENDATIONS
PRINCIPLE 1: STRUCTURE THE BASE TO MANAGEMENT FOR DISCLOSURE
RECOMMENDATIONS:
· List down the responsibilities and roles to the management and board of directors
· The responsibilities of the board of directors and management separately
· Ensure proper checks prior to appointment of a person as a director regarding their security and election related matters
· Ensure all necessary information are provided on decision of re-electing a director
· Ensure that the appointment for directors and other executives are fixed with an agreement that clearly states the terms of their meeting
· The responsibility from the company secretary is through the board of the company for all the matters of the board
· At an initial process, it is necessary to disclose the performance evaluation process of the board with regard to its independent directors and other members
· It is also necessary to mention the period of such performance evaluation process well in advance to all the members of the board
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PRINCIPLE 2: FORM A PROPER BOARD AND COMMITTEE THAT ADDS VALUE TO THE COMPANY
RECOMMENDATIONS:
· The board must fix a committee which must include 3 members in which one must be independent director
· The committee is to be headed by an independent director
· The board must disclose the authorized and sanctioned members of the committee
· The board must also disclose the number of meetings conducted the content and minutes of the meeting etc.
· The board must disclose the details of each member of the board of directors and the tenure of their membership
· Must also disclose the desired position as that of each member and if the position is of interest to all the members of the board. If it is denied, the reason such rejections
· The major proportion of the board must be independent directors
· The Chairman of the Board must be an independent director but should not serve as CEO of any company during such a tenure
· The directors elected must be professionally trained to perform their duties effectively
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PRINCIPLE 3: COMPANIES MUST ACT ETHICALLY AND WITH ACCOUNTABILITY
RECOMMENDATIONS:
· The companies must have a code of ethics and conduct to be followed by all the board members...
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