Trimester 3, 2017 Auditing,
Question Auditor’s Report The new auditing standard ASA701
Audit Matters in the Independent Auditor’s Report is developed in the wake of the global financial crisis. This development is in response to calls from shareholders to know more about the companies they invest in. Further, investors have also requested earlier warnings of potential issues that may exist with respect to an entity’s ability to continue as a Going Concern which resulted in the revision of ASA 570 (ISA 570) Going Concern. Students are required to select an Australian ASC Top 100 listed corporation (you are not allowed to select any company whose auditor has early adoption of ASA 701 and has communicated KAM
(Key Audit Matters) in the auditor’s report) and assessed “areas of higher assessed risk of material misstatement, or significant risks identified in accordance with ASA 315”, “significant auditor judgements relating to areas in the financial report that involved significant management judgement” as well as “the effect on the audit of significant events or
transactions that occurred during the period” (Para 9 ASA 701). The summary report should include data extracted from the General Purpose Financial Report relevant to the material analysed. Required Using reference materials available on the internet, research the topic and prepare a report, fully referenced and up to 2,500 words (assignment in excess of 2,500 words will be penalized). Minimum of 8 academic references is required.
Due Date: Week 10 – 5:00 pm Wednesday of Week 10 The report should include title page, executive summary, table of contents, appropriate headings and sub headings, recommendations, reference list (Harvard- Anglia style), attachments if relevant, single spaced, font
Times New Roman 12pt.
The marking guide will be as follows: 30% Analysis 30% Research – extent and application 30% Recommendations/conclusions 10% Presentation Total mark will be scaled to a mark out of 30 subject marks.
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