ACTY 7209 Advanced Auditing 高级审计 assignment 代写

	Business Enterprise & High Technology Network Business Practice Pathway Bachelor of Business

ACTY 7209 Advanced Auditing
Group Project:  Audit Planning & Risk                                                                                                               

Semester:	Semester 2,2017
Due date and time:	Tuesday 19 September 2017–1.00pm
Delivery:	Hand in one copy of the group’sproject at the start of class on Tuesday 19 September
Total marks:	100 marks
Weighting:	25% of course
Instructions:	Groups are to consist of three (3) or four (4) studentsonly. Use the Q&A forum on the course Moodle for enquiries about the assignment. Each member of the group is to sign the student declaration at the bottom of this page. Attach this cover sheet and a copy of the marking schedule (page 8) to the group’s assignment.
Group declaration:	We confirm that: ·         This is an original assignment and is entirely the work of our group. ·         We understand that collusion, copying and plagiarism (as defined in the BBus Procedures) are serious offences which will result in disciplinary action.We have not copied anyone else’s work, nor have we allowed anyone else to copy our work. ·         Where ideas, tables, products etc from any other sources have been used, the source has been acknowledged in every case. ·         This assignment has not previously been submitted as assessed work for any other academic course.
Student Name:
Student ID No:
Student signature:
Date:

Have a query? Want to improve your grades next time? You could:
·         Talk it over with your lecturer or programme director.
·         Visit Te Puno Ako or Maia for learning advice and support.
·         Visit the Pacific Centre for Teaching, Learning and Research.
·         Contact the Student Issues Advocates for independent advice.  For contact details and more information, go to http://www.unitec.ac.nz/current-students/student-life/student-advocates

 
The purpose of this project is for a group of students, working as an audit team, to apply New Zealand auditing standards in the planning of an audit.  Each group will:
·                Assess engagement risk relating to the acceptance of a new audit client,
·                Perform risk assessment procedures in order to identify audit risk factors,
·                Identify and assess possible sources of inherent risk through understanding the nature of the entity, and
·                Prepare a presentation (using powerpoint) on the inherent risks of a new audit client.
McKnight& Associates Chartered Accountants (MA) is a registered audit firm based in Auckland.  Five of the sixpartners in the firm are licensed auditors in accordance with the Auditor Regulation Act 2011. MA is associated with an international firm of chartered accountants, Joyce, McCourt & Graham (JMG) with offices in Australia, United Kingdom, United States and four other countries.
As the Managing Partner, Carol McKnight wants to grow the firm’s audit and assurance practice.Considering the partners’ extensive experience in auditing FMC reporting entities, Carol has identifiedpotential audit clients, all of which are listed on the New Zealand Stock Exchange:

Group Entity	Balance Date	Current Audit Firm	NZX Listing Code(s)
Comvita Limited	30 June	KPMG, Tauranga	CVT
BLIS Technologies Limited	31 March	Deloitte, Dunedin	BLT
Methven Limited	30 June	PricewaterhouseCoopers, Auckland	MVN
Tegel Group Holdings Limited	30 April	PricewaterhouseCoopers, Auckland	TGH

Note: the entities and their auditors are unaware of MA’s interest in acquiring the audit.
Independence confirmations from all the audit partners of MA showed that there are no independence threats in existence between the partners, their families and related entities, and the abovegroup entities.
Carol’s instructions to the audit teams are to evaluate the engagement risk of acquiring the audit of one of these group entitiesfor the 2018 financial year end.  In addition, the audit team is to identify risk factors and assess inherent risk, through performing risk assessment procedures and gaining an understanding of the group.  Each audit team will prepare a brief presentation highlighting the inherent risks.  The audit procedures are to be performed in accordance with the requirements of New Zealand auditing standards (ISA(NZ)).
MA audit methodology for calculation of planning materiality is shown below.  The base selected is the one determined to be the driver of value to the business.

Base		Base		Base
Profit before tax	5.0%	Gross profit	2.0%	Equity	1.0%
Revenue	0.5%	Total assets	0.5%

Audit teams of 3-4 students are to be selected as set out inthe Audit Team Selection and Operation section on the following page.
Each audit team is required to complete audit programmes (A100, A110 and A120) and work papers for three sections of the audit file for one entity. The audit teammay utilise the group’sannual and interim financial statements and other publicly available information in completing the audit programmes.
Required
1.    The audit team is required to complete the audit programmes[1] on pages 5-7:

A100 Engagement Acceptance	25 marks
A110 Risk Assessment Procedures	20 marks
A120 Identifying Risks through Understanding the Entity	40 marks

For each audit programme, the audit team must:
i.      Document the audit work done in the format of audit workpapers. Cross reference each workpaper to the audit programmein the W/P ref column.
ii.     Sign off each procedure in the audit programme to show that it has been successfully completed.  Enter Yes or No and the auditor’s initials in the PSC?/(Y/N)Initials column.
iii.    Complete the conclusion, with reasons, based on the audit procedures completed.

2.	Prepare a power point presentation of no more than 10 slides summarising the inherent risks of the entity.  Assume that the presentation will be made to the MA partners to make a decision on which entity represents acceptable inherent risk.   NOTE: no actual presentation is required.	10 marks
3.	Presentation and layout of audit work papers	5 marks

Notes
1.      Marks will be awarded for correct identification and analysis, interpretation of standards and application to the audit of the entity; do not just repeat the organisation’s information.
2.      Use the APA referencing system to acknowledge all information from other sources, includingannual and half year reports, financial statements and website.Refer to: http://libguides.unitec.ac.nz/apareferencing.
Confidentiality
This assignment uses factual information about each group. For the purposes of this assignment, you are to utilise publicly available information ONLY. You are NOT to approach the companies, auditors or any of their personnel directly.

 ACTY 7209 Advanced Auditing 高级审计 assignment 代写
You are required to be a member of an audit team. An audit team is to consist of three or four students. Students can select their audit team members and appoint an Audit Manager. The Audit Manager is to email the lecturer cmcknight@unitec.ac.nzthe names of the audit team members by Wednesday 30 August.
 
Each team will be assigned the group entityby the lecturer as team emails are received:

Team 1, 5, 9, 13	Comvita Limited
Team 2, 6, 10, 14	BLIS Technologies Limited
Team 3, 7, 11, 15	Methven Limited
Team 4, 8, 12, 16	Tegel Group Holdings Limited

 
The audit work is to be shared evenly across the team members. The Audit Manager should coordinate the team in order that the audit work is completed on time and to a consistent standard.If audit team members are not happy about the contribution of an individual member, contact the lecturerimmediately.
 
The group project will be assessed according to the marking schedule on page 8.  The assessment accounts for 25% of the overall course assessment.

 
McKnight & Associates Chartered Accountants
Engagement Acceptance[2]       (25 marks)                                                        A100

	Prospective entity			Period ending
Objective:		To assess whether the level of engagement risk is acceptable to the firm, the firm has the necessary competencies and the firm and staff comply with the independence requirement.

PSC = Procedure successfully completed

Engagement risk assessment

W/P ref.

PSC? (Y/N) Initials

Conclusion

Engagement Scope (5 marks) 1.    Identify the type of entity. 2.    Identify the group legal structure (incl %age ownership). 3.    Identify the locations of the group operations. 4.    Identify the relevant accounting framework. 5.    Identify the legal and regulatory requirements for the audit, including the reporting deadline(s).

Integrity& reputation (5 marks) 1.    Establish the integrity of these related parties through publicly available information, considering their experience and background: a)   the entity’s owners, b)   those charged with governance, c)   management. 2.    Identify relevant board committees and other governance tools such as internal audit, if applicable. 3.    Search publicly available information to establish the reputation of the entity. Consider community and charity involvement, employee policies and practices, etc.

MA competencies (5 marks) Document the necessary resources required to complete the engagement. Consider: a)     MA personnel with required regulatory qualifications, b)     External auditor experts (if required), c)     Component auditors (if required), d)     Quality review partner for audit of FMC reporting entity.

Independence (3 marks) 1.    Document confirmation that no independence conflicts exist with MA partners and the prospective client. 2.    Obtain independence confirmations fromall staff on the audit team.

Engagement letter (4 marks) Prepare a draft engagement letterin accordance with ISA(NZ)210 Agreeing the Terms of the Audit Engagement. Include specific references to the entity, where appropriate.

Conclusion (3 marks)

Based on the results of the procedures completed above, the engagement risk for this entity should be rated as: (select one) Low Risk                                              Moderate Risk                                    High Risk                                               Not Accepted   Basis of conclusion:

Prepared by

___________________

Date

__________

Reviewed by

Date

McKnight & Associates Chartered Accountants
Risk Assessment Procedures[3] (20 marks)                                                A110

Prospective Entity			Period ending
Objective:	To identify audit risk factors and document the calculation and justification of materiality.

PSC = Procedure successfully completed

Risk assessment procedures							W/P ref.	PSC? (Y/N) Initials	Conclusions
Performance Measures (10 marks) 1.   Identify the key performance indicators of the entity and obtain or prepare a trend analysis for: a)   non-financial information b)   key financial ratios 2.   Compare with industry, sector and competitor information, where available. 3.   Document the inherent risk factors identified.
Materiality (5 marks) Calculate overall materiality for planning purposes in accordance with MA audit methodology, based on the latestfinancial results of the entity.  Justify the choice of the basis of materiality.
Conclusion as a result of completing the risk assessment procedures above (5 marks)
Specific areas of inherent risk of material misstatement are identified as:       Planning materiality calculated in accordance with MA audit methodology is: $   The overall assessment of inherent risk at financial statement level is rated as: (select one) Low Risk                                              Moderate Risk                                    High Risk   Basis of conclusion:    ACTY 7209 Advanced Auditing 高级审计 assignment 代写
	Prepared by	___________________	Date	__________	Reviewed by					Date

 
McKnight & Associates Chartered Accountants
Identifying Risks through Understanding the Entity[4] (40 marks)                            A120

	Prospective Entity			Period ending
Objective:		To obtain and document our understanding of the entity for the purpose of identifying areas of inherent risk.

PSC = Procedure successfully completed

Understanding of the entity and possible sources of risk in relation to the following factors:	W/P ref.	PSC? (Y/N) (Initials)		Conclusion
Industry, Regulatory & Other External Factors (5 Marks) a)     Key industry/sector indicators, trends, constraints and changes b)     Impact of economic factors such as interest rates and inflation c)     Legal and regulatory requirements d)     Key customers, suppliers and competitors
Nature of the Entity & Accounting Policies(based on the latest financial reports of the entityand other publicly available information)(25 marks) a)     Management team’s competence, integrity and operating style b)     External advisers c)     Identification of related parties and transactions d)     Financing sources and agreements e)     Investments f)      Key accounting policies with risk elements g)     Significant accounting elements requiring accounting estimates and judgments h)     Any other areas of risk.
Objectives, Strategies & Related Business Risks (5 marks) a)     Nature of business plans and the risks involved b)     Entity expansion or disposal plans or changes in products/services c)     Any new investments planned (including capital expenditure).
Conclusion as a result of understanding the business and completing the procedures above  (5 marks)
Specific areas of inherent risk of material misstatement are identified as:           The overall assessment of inherent risk at financial statement level is rated as follows: (select one) Low Risk                                              Moderate Risk                                    High Risk   Basis of conclusion:

 

Prepared by

___________________

Date

__________

Reviewed by

____________________

Date

________

The group project will be marked according to the following criteria.
 
Each audit team member will receive the overall audit team mark for the assignment.  If the team members believe that the contribution of all team members is not equal, then they can agree an alternative way to share the total mark, with the agreement of the lecturer.
 

	Possible Marks	Actual Marks
A100 Engagement acceptance Engagement scope ** Integrity and reputation MA competencies Independence Engagement letter Conclusion	25 5 5 5 3 4 3
A110 Risk assessment procedures Performance measures ** Materiality Conclusion	20 10 5 5
A120 Identifying risks through understanding the entity Industry, regulatory and other external factors ** Nature of the entity and accounting policies ** Objectives, strategies and related business risks ** Conclusion	40 5 25 5 5
Presentation (using Powerpoint) Inherent risks are appropriate and relevant Professional, attractive presentation appropriate to the MA partners	10 8 2
Presentation and Layout Professional presentation of audit work papers, with appropriate audit terminology Accurate spelling, grammar and punctuation Use of APA referencing where appropriate	5 2 1 2
TOTAL	100
** Marks will be awarded for correct identification and analysis of information, interpretation of standards and application to the audit. Do not just repeat the entity’s information.

 
 
 
 
 
 
 
 
 
 
 
 
Attach a copy of this Marking Schedule to your assignment.