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Auditing and Assurance Case Study ACCM4400

ACCM4300 Page 1 Case Study

Assessment 3 Information

Subject Code: ACCM4400

Subject Name: Auditing and Assurance

Assessment Title: Case Study

Assessment Type: Individual Written Report

Weighting: 40%

Total Marks: 40 marks

Submission: Individual Written Report submitted via Turnitin on MyKBS

Word limit: 1,800 words (max.) (Do not include title page, table of
contents, executive summary and reference list in the word count.)

Due Date: Tuesday of Week 13 at 19.55 AEST

Your Task
You must complete a report detailing your findings and suggested audit procedures as stated in
Assessment Question for an ASX listed company. The name of the company will be made available
to you at 08:00 (AEST) on the Friday of Week 11.

Assessment Description

This assessment is designed to test your ability to apply the knowledge gained from ACCM4400
workshops during the semester, in identifying assertions at risk and developing appropriate audit
procedures. This will be done by analysing available information of an Australian company
(hereinafter referred to as “The Company”) that is listed on the ASX. The name of The Company will
be made available on the Assessments page of MyKBS for ACCM4400 on Friday of Week 11 and
you must submit your report at 19:55 (AEST) on Tuesday of Week 13.

Your facilitator will discuss the assessment requirements during Workshop 11. Workshop participants
will be divided into groups to discuss the assessment requirements based on a sample case study.
Your facilitator will then give feedback on each group’s responses to the application of the questions
to the sample case. It is expected that the discussions during Week 11 will clarify the expectations
and requirements for performing at a high standard in this assessment.

Please remember that this is an INDIVIDUAL ASSESSMENT and must be based on The Company,
name of which will be released at 08:00 (AEST) on the Friday of Week 11.

Learning Objectives:

After completing this assessment, you will be able to:

1) Research information about the selected company (using multiple sources)

2) Address particular areas of the audit process and develop appropriate audit procedures

3) Develop professional report-writing skills

ACCM4300 Page 2 Case Study

Assessment Question:

During your semester break, you participated in a vacation program at a local audit firm. During the
vacation program, you assisted an audit senior on the planning of a medium sized company, including
developing appropriate substantive audit procedures. You have one more semester to complete your
post graduate course and have indicated to the audit manager that you would like to work on a full-
time basis at the audit firm on completion of you course.

The audit manager has asked you to write a report as part of the process of determining your
suitability as a candidate for a permanent role in the audit firm. The manager wants to assess your
ability to apply the knowledge you gained, to the audit planning process and developing appropriate
substantive procedures as well as your report writing skills.

You are required to address the following in your report (refer to rubrics on page 4 & 5 of this document
for breakdown of marks and achievement criteria by component):

1. Identify 4 business risks of The Company, that will increase the risk of material misstatement

(specifically inherent risk) at the assertion level for classes of transactions or account balances.
For each business risk, identify only 1 class of transaction or account balance (income statement
or balance sheet line item), and for each class of transaction/account balance please identify the
assertion most (only one) at risk of misstatement. You need to explain why each business risk
will lead to a risk of misstatement to the specific class of transaction/account balance and
assertion that you have identified.

2. Describe in detail, the appropriate substantive procedure that will address each of the class of
transaction or account balance and assertion identified as at risk of material misstatement. The
description of procedures must be detailed enough for someone without auditing knowledge to
be able to carry out the procedures correctly.

Additional Requirements:
You must include the following in your report:

1. Title page

2. Table of contents

3. Executive summary

4. Introduction

5. Body of report

6. Conclusion

7. References

Sources of information for this assessment may include:

1. The latest annual report of The Company

2. The Company website

3. Announcements on ASX with regards to The Company

4. News articles on The Company

5. Corporate Governance statements of The Company

ACCM4300 Page 3 Case Study

Important Study Information

Academic Integrity Policy

KBS values academic integrity. All students must understand the meaning and consequences of

cheating,plagiarism and other academic offences under the Academic Integrity and Conduct Policy.

What is academic integrity and misconduct?

What are the penalties for academic misconduct?

What are the late penalties?
How can I appeal my grade?

Click here for answers to these questions: http://www.kbs.edu.au/current-students/student-policies/.

Word Limits for Written Assessments

Word limit is 1,800 words (max.). Do not include title page, table of contents, executive summary and
reference list in the word count.

Submissions that exceed the word limit by more than 10% will cease to be marked from the point at

which that limit is exceeded.

Study Assistance

Students may seek study assistance from their local Academic Learning Advisor or refer to the

resources on the MyKBS Academic Success Centre page. Click here for this information.

ACCM4400 page 4 Case Study

ACCM4400 Individual Case Study Rubric: 40%

Components High Distinction

85 – 100%

(Marks 17 – 20)

Distinction

75 – 84%

(Marks 15 – 17)

Credit

65 – 74%

(Marks 13 – 15)

Pass

50 – 64%

(Marks 10 – 13)

Fail

0 – 49%

(Marks 0 – 10)

Mark

Awarded

(Out of 20)

Question 1:

Risk

identification

and link to

class of

transaction/

account

balance and

assertion

Appropriate business
risks are identified and all
of it accurately linked to
class of
transaction/account
balance and assertion.

Reasoning for link is well

written and explained in

a logical manner

displaying an

outstanding

understanding.

Appropriate business
risks are identified and
mostly accurately
linked to class of
transaction/account
balance and assertion.

Reasoning for link is
reasonably well written
and explained in a
logical manner
displaying a good
understanding.

Mostly appropriate
business risks are
identified and mostly
accurately linked to
class of
transaction/account
balance and assertion.

Reasoning for link is
not elaborated
adequately displaying
only a satisfactory
understanding.

Mostly appropriate
business risks are
identified but not all
accurately linked to
class of
transaction/account
balance and assertion.

Reasoning for link is
very brief displaying a
less than satisfactory
understanding.

Lack of understanding
of business risk and
hardly able to link risk
to misstatements or
not at all.

/20

High Distinction

85 – 100%

(Marks 10.2 – 12)

Distinction

75 – 84%

(Marks 9 – 10.2)

Credit

65 – 74%

(Marks 7.8 – 9)

Pass

50 – 64%

(Marks 6 – 7.8)

Fail

0 – 49%
(Marks 0 – 6)

Mark

Awarded
(Out of 12)

Question 2:

Appropriate

Substantive

procedures

Substantive
procedures are
accurate and suitable
to identified class of
transaction/ account
balance and
assertion. Procedures
described
comprehensively and
instructions are
precise.

Substantive procedures

are logical and mainly

suitable to identified

class of transaction/

account balance and

assertion. Procedures

described sufficiently

and instruction are

logical.

Substantive procedures
are mostly accurate and
suitable to identified
class of transaction/
account balance and
assertion. Procedures
described partially and
instruction are basic.

Substantive procedures
partially accurate and
not always suitable to
identified class of
transaction/ account
balance and assertion.
Procedures described
superficially and
instruction are
sometimes inaccurate.

Substantive procedures
are largely unsuitable to
identified class of
transaction/ account
balance and assertion.
Procedures are hardly
described and
instruction are
mostly/always
inaccurate.

/12

ACCM4400 page 5 Case Study

High Distinction

85 – 100%

(Marks 6.8 – 8)

Distinction

75 – 84%

(Marks 6 – 6.8)

Credit

65 – 74%

(Marks 5.2 – 6)

Pass

50 – 64%

(Marks 4 – 5.2)

Fail
0 – 49%

(Marks 0 – 4)

Mark

Awarded
(Out of 8)

Overall
Presentation,
Language and
Grammar

Presentation,
formatting and
structure on par with
highest professional
standards.

Exceptional and
eloquent use of the
English language
presented clearly,
sequentially and
without errors in
grammar and
referencing.

Only minor

improvements are

needed in presentation,

formatting and structure

for high professional

standards to be met.

An excellent use of the

English language

though minor

improvements needed

in clarity, sequence,

grammar and

referencing.

An inconsistent
application of
professional standards
of presentation,
formatting and
structure.

A solid use of the
English language
though obvious
inconsistencies exists in
terms of clarity,
sequence, grammar
and referencing.

Major improvements are
needed in terms of
presentation, formatting
and structure.

An acceptable level of
English with major
improvements required
in terms of clarity,
sequence, grammar and
referencing.

Unprofessional
presentation and
formatting with a
structure that does not
flow.

The application of the
English language is
difficult to follow and the
standard of clarity,
sequence, grammar and
referencing is below that
which would be
acceptable by a
professional body.

/8

TOTAL MARKS (out of 40 marks)