To complete this assessment task, you will need to select a company listed on the ASX (Australian Stock Exchange).
You have recently started a graduate placement at MPA Partnership, a large Auditing firm with head office located in Robina, Gold Coast. Your manager has asked you to be involved with a client to provide assurance engagement regarding risk assessment of the client during the audit.
The client is a company listed on the ASX (Australian Stock Exchange). Note: you will need to select a listed company as your client. Assume your auditing firm has won the tender to prepare 2020/2021 auditor’s report for this client.
Part A:
After reviewing 2019/2020 annual report including the auditor’s report, you should address following questions:
1) Your company’s name and website
2) Reporting date
3) Date of the auditor’s report
4) Name of the audit firm and audit partner signing the report
5) To whom is the auditor’s report addressed?
6) Provide of audit opinion expressed in the auditor’s report, and details
7) Which ASAs or other regulations do the auditor’s report comply with?
8) Total assurance fees and any non-assurance charged
9) Total assets, liabilities and operating revenue
10) Number of shares at the year end
Part B:
In February 2021, during a review of half-year financial report for the client, the manager has asked you to conduct risk assessment of the client.
1) Describe the impact of previous audit on audit risk.
2) Describe the impact of accounting estimates and accounting policies for accounts on audit risk.
3) Identify and explain factors (at least six factors related to audit risk) that potentially impact on the audit risk of the chosen company. Refer to ASAs 240, 315 or other relevant regulation.
4) For each risk factor identified in question 3), explain how the risk factor will impact on the approach to the audit of the chosen company.
5) Determine the components of the audit risk model based on your evaluation of risk factors identified in 3) and 4). Comment on the risk model of the chosen company. Refer to ASAs 200 or 315, or other relevant regulation.
6) Provide recommendations and select appropriate overall audit strategy for the chosen company. Refer to ASA 300 or other relevant regulation.
