Page 1 of 5 XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021 HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION Assessment Details and Submission Guidelines Trimester T1 2021 Unit Code HA3032 Unit...

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XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021
HOLMES INSTITUTE
FACULTY OF
HIGHER
EDUCATION
Assessment Details and Submission
Guidelines
Trimester T1 2021
Unit Code HA3032
Unit Title Auditing
Assessment Type Group Assignment
Assessment Title “Developing an Audit Program for a selected publicly listed Company”
Purpose of the
assessment (with
ULO Mapping)
Students are required to:
1.1- Identify and distinguish between tests of controls, substantive tests of
transactions and substantive tests of balances.
1.2- Identify and understand when the auditor will undertake substantive
audit procedures in response to specific assessed risks of material
misstatement.
1.3- Understand how assertions relate to account balances
1.4- Understand how to select the most efficient and effective combination of
audit procedures that allows them to achieve the audit objective
1.5– Active participation in an “audit team context” with professional
group discussions

The following Unit Learning Outcomes are applicable:
1. Demonstrate a thorough understanding of the reporting requirements of
auditing standards relating to auditors’ reports.
2. Explain how the audit planning process directs the auditor to obtain
adequate evidence to support audit findings and address the importance of
materiality in an audit;
3. Explain the process of audit planning to determine risk assessments and an
overall audit strategy;
4. Explain the auditors’ obligations with regards to understanding the client’s
business and internal controls, and assessing business risks.
5. Achieve a high level of competence in applying prescribed auditing
techniques in gathering evidence to satisfy audit assertions.
Weight 40% of the total assessment
Total Marks 40 Marks
Word limit Maximum 3,000 – 3,500 words
Due Date Week 10
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XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021
Guidelines on
Submission
• All work must be submitted on Blackboard by the due date along with a
completed Holmes Institute Assignment Cover Page.
• The assignment must be in MS Word format, single spacing, 12-pt Arial
font and 2 cm 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.
Adapted Harvard Referencing
Holmes has now implemented a revised Harvard approach
to referencing:
1. Reference sources in assignments are limited to sources which provide full
text access to the source’s content for lecturers and markers.
2. The Reference list should be located on a separate page at the end of the
essay and titled: References.
3. It should include the details of all the in-text citations, arranged
alphabetically A-Z by author surname. In addition, it MUST include a
hyperlink to the full text of the cited reference source.
For example;
P Hawking, B McCarthy, A Stein (2004), Second Wave ERP Education,
Journal of Information Systems Education,
Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf
4. All assignments will require additional in-text reference details which will
consist of the surname of the author/authors or name of the authoring
body, year of publication, page number of contents, paragraph where the
content can be found.
For example;
“The company decided to implement an enterprise wide data warehouse
business intelligence strategies (Hawking et al, 2004, p3(4)).”
Non - Adherence to Referencing Guidelines
Where students do not follow the above guidelines:
1. Students who submit assignments which do not comply with the guidelines
may be required to resubmit their assignments or incur penalties for
inadequate referencing.
2. Late penalties will apply per day after a student or group has been notified
of a resubmission requirements.
• Students whose citations are fake will be reported for academic misconduct

http://jise.org/Volume15/n3/JISEv15n3p327.pdf

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XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021
HA3032 Auditing – Group Assignment Specifications

Purpose:
The aim of this group assignment is to provide you with an opportunity to design a “risk- based”
audit program for a real-world company and focus on the “Substantive tests of balances”,
which involves substantiating the ending balance of an account(s), which is comprised of
multiple transactions, as at a certain year-end date. Students are also required to research the
applicable accounting and auditing standards depending on the material account balances
selected.
Assignment Requirements and Structure
1. Students are required to form groups of 4 students group members by completing the
“HA3032 Group Form details”.
2. Each group of students group have been provided by unit coordinator, a unique ASX
listed company to use for progressive analysis in this group assignment.
3. Prepare a detailed audit program Report [3, XXXXXXXXXXwords] for the client/company in
a group of 4 students. Students must use a Report Format with an Executive Summary
and Table of Contents.
4. Use publicly available online resources for research purposes, such as: The Accounting
and Auditing standards, which are available from government-based websites.
*Note: Students are required to form and self-enrol into groups – a maximum of 4 students
per group. You will not be able to submit your group assignment unless you are OFFICIALLY
enrolled into a designated group in Blackboard (even if it is a solo-group of 1). Submit the
group assignment as a single document, including the Holmes official COVER SHEET. Once
formed, the group membership should not be changed for the duration of the trimester.
For help with any group assignment matters, please address your email to
XXXXXXXXXX ensuring that your full details (Name, student ID, unit name and
number) are included.

Detail Assignment Tasks: Developing an Audit Program for a listed ASX Company
1. Gain an understanding of the nature of the entity and its industry and then identify key
business risks. After this is completed, assess where the risks of material mis- statements
could be in the financial report. Consider the factors affecting both Inherent Risk and Control
Risk. Finally, apply the Audit Risk Model [AR = f (IR, CR, DR)] to the selected company.
Which risk rating would you apply (Low, Medium or High) to the company’s inherent risk
assessment and control risk assessment? How does this affect your assessment of Detection
Risk and Audit Risk?
2. Perform analytical procedures of the Statement of Financial Position and of Financial
Performance over the last three years using appropriate ratios and/or metrics. Select four key
ratios and provide a brief explanation in the report. This should be presented in a table format.
3. Discuss with your group members which account balances are considered “material”. Explain
how you calculated materiality for planning purposes and provide appropriate justification for
your decision-making.
(Note - Use a table format to structure your answers to questions 4, 5, 6, 7 & 8)
4. Select up to ten different material account balances, at least five assets and five liabilities.
5. For each material account balance selected, list the relevant financial report assertions and
explain why the selected assertions are applicable to each account.
mailto: XXXXXXXXXX

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XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021
6. Design a comprehensive set of audit work steps for each material account balance, which
addresses the selected assertions and which will result in sufficient and appropriate audit
evidence being collected for your selected client company. (Note - Assume that a
predominantly substantive approach is being adopted). Consider which standards are
appropriate.
7. Include a sampling plan, which details how you will use sampling for each material account
balance to be tested. How many items will be tested for each test?
8. Refer to some or all of the following websites for further information and research processes:
http://www.auasb.gov.au/Home, http://www.asic.gov.au/, www.cpaaustralia.com.au,
http://www.ifrs.org,
9. Holmes Online Resources
Holmes has also provided students with an online resources hub. Students can use the following link
to access the Holmes Open Education Resources Web Site:
https://www.studyresources.holmes.edu.au/

Group Assignment Report - Marking Criteria Weighting %
Key Business Risk Identification 4 10%
Audit Risk Model – Assessment of Inherent Risk, Control Risk,
Detection Risk
4 10%
Analytical Review of the selected company, including ratio analysis in
a table
4 10%
Material Account Balance Identification (Minimum 5 x Assets and 5 x
Liabilities)
10 25%
Assertions identified – Correct Assertions are stated and explanations
are noted
4 10%
Audit Program – Audit work steps / procedures are clearly stated and
listed.
10 25%
Sampling Plan for each material account balance with samples sizes XXXXXXXXXX%
Weight 40 Marks 100%


http://www.auasb.gov.au/Home
http://www.auasb.gov.au/Home
http://www.auasb.gov.au/Home
http://www.auasb.gov.au/Home
http://www.asic.gov.au/
http://www.asic.gov.au/
http://www.asic.gov.au/
http://www.asic.gov.au/
http://www.asic.gov.au/
http://www.asic.gov.au/
http://www.cpaaustralia.com.au/
http://www.cpaaustralia.com.au/
a
http://www.cpaaustralia.com.au/
http://www.cpaaustralia.com.au/
http://www.cpaaustralia.com.au/
http://www.cpaaustralia.com.au/
http://www.cpaaustralia.com.au/
http://www.ifrs.org/
http://www.ifrs.org/
http://www.ifrs.org/
http://www.ifrs.org/
https://www.studyresources.holmes.edu.au/

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XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021
HA3032 Auditing Group Assignment - Marking Rubric
HA3032
Auditing
Group
Assignment
-
Marking Rubric
Excellent
Good
Satisfactory
Unsatisfactory
Key
Business
Risk
Identification

(4 marks)
Relevant
Business
Risks have
been clearly
stated and
are
appropriate
after
considered
analysis.
(80% - 99%)
Business Risks
are well stated
and
appropriate to
the company
selected.
(65% - 80%)
Business
Risks are
noted and
stated, but
they are only
generic in
nature.
(50% - 65%)
Business Risks
have not been
adequately
addressed. There is
insufficient or
irrelevant
information noted.
(0 - 49%)
Audit Risk
Model
(4 marks)
The Audit Risk
Model has
been
very well
understood
and applied.
All risk
components
are correctly
stated and
the
Audit
Risk
Model
has been
applied
correctly
to the
company
selected.
(80% - 99%)
The Audit Risk
Model has been
correctly
understood and
all the risk
components are
noted. The
analysis is
sound, but detail
is lacking.
(65% - 80%)
The Audit
Risk Model
has been
satisfactorily
applied, but
either some
minor
mistakes are
noted or
there is a
lack of detail
in some
areas. (50%
- 65%)
The Audit Risk
Model has not been
understood,
considered or
analysed in the
report. There is
minimal or no real
grasp of the
concept or it is
missing from the
report XXXXXXXXXX%)
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XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021
Analytical
Review
(4 marks)
The Analytical
review has
been very well
performed and
includes three
years of ratios.
All four key
ratios are
appropriate
and presented
in a table with
sound
commentary.
(80% - 99%)
The Analytical
review has been
well performed
and includes four
key ratios. They
are relevant and
presented in a
table with some
good
commentary.
(65% - 80%)
The
Analytical
review has
been
satisfactorily
performed.
Ratios are
noted and
there is some
commentary
, but there
are some
minor errors.
(50% - 65%)
The Analytical
review is sub-
standard. There are
ratios missing. There
is no commentary or
it
is poorly written. The
requirements have
not been understood.
The analytical review
is missing from the
report.
(0 - 49%)
Material
Account
Balance
Identification

(10 marks)
Materiality
has been
correctly
calculated
using an
appropriate
base with
explanation.
Five Asset
accounts
and five
Liability
accounts
have been
selected
and they
are
appropriate
to the
company.
This
section is
presented
in a table.
(80% -
99%)
Materiality has
been correctly
calculated with
some
explanation.
Five Asset
accounts and
five Liability
accounts have
been selected.
This section is
presented in a
table. (65% -
80%)
Materiality
has been
stated with
some
explanation.
Asset
accounts and
liability
accounts have
been
provided, but
some are not
material.
Some
Formatting is
noted. (50% -
65%)
Materiality has not
been calculated and
it is missing.
Account balances
are either only
partially stated or
missing. Accounts
selected are not
asset or liability
accounts or they
are not material
account balances.
There is a lack of
understandin
g.
(0 - 49%)
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XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021
Assertions
Identification

(4 marks)
Each of the
material accounts
selected has the
correct financial
report assertions
associated with
it. A clearly written
and correct
explanation has
been provided. It
is well presented
in the table. (80%
- 99%)
Each of the
material
accounts
selected has
financial report
assertions
associated with
it. A correct
explanation has
Been provided
(65% - 80%)
The accounts
selected have
financial report
assertions
associated with
them. A
minimal
explanation has
been provided.
(50% - 65%)
No financial report
assertions have been
provided or they are
clearly incorrect.
There is a lack of
understanding of the
requirements.
(0 - 49%)
Audit
Program
(10 marks)
A
comprehensive set
of
appropriate audit
procedures have
been provided and
they are very well
stated for each of
the material
account balances.
There is a logical
linkage with the
financial report
assertions. This
section is clearly
and well formatted
in a table.
(80% - 99%)
A set of
appropriate audit
procedures have
been provided and
they are effectively
stated for each of
the material
account balances.
There is a linkage
with the financial
report assertions.
This section is well
formatted in a
table structure.
(65% - 80%)
Audit
procedures
have been
provided and
they are stated
for each of the
material
account
balances.
There is an
association
with the
financial report
assertions. This
section is
appropriately
presented in a
table structure.
(50% - 65%)
Audit procedures have
not been provided or
they are mis-stated or
incorrect for the account
balances. There is no
association with the
financial report
assertions or the
assertions are missing.
This section has not
been presented in a
table structure. It is not
presented well. There is
a lack
of understanding.
(0 - 49%)
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XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021
Sampling
Plan
(4 marks)
For the material
account balances,
a well -
constructed
sampling plan
has been
included which
states the
sampling method
selected, the
appropriate
sample sizes of
items to be
tested, as well
as other
important
sampling
information for
evaluating the
results of the
sample. This is
included in a
table.
(80% - 99%)
For the material
account balances,
a good sampling
plan has been
included which
states the
sampling method
selected and the
sample sizes of
items to be tested.
(65% - 80%)
For the
material
account
balances, a
satisfactory
sampling plan
has been
included which
includes the
sample sizes
for each
account.
(50% - 65%)
A sampling plan has
either not been included
or is only partially
provided. There is a
lack of understanding of
basic sampling
concepts and there is
some incorrect
included XXXXXXXXXX%)
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XXXXXXXXXXHA3032 AUDITING - GROUP ASSIGNMENT – T1, 2021
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-Skills 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 occasions
this 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
present as 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 supporting
false conclusions, including manipulating images.
Source: INQAAHE, 2020
Answered 7 days AfterMay 15, 2021HA3032

Solution

Harshit answered on May 22 2021
22 Votes

Executive Summary
This report depicts the aftereffects of our review of Australian examining organizations in the year and covers the yearly budget summaries for the period from December 31,...

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