Please do not begin this until I have uploaded all the information and documents to my account. I am doing this assignment in a group and I need to make sure you do not pick and issue or event they have chosen. I will also be uploading the format that it needs to be in and so forth.
ANZ – ASSIGNMENT 1 (AUDIT PLANNING CASE STUDY):
(a) From your research, identify an issue or event (accounting or otherwise) that may have an impact on the planning of the audit of ANZ for years ending on or after 30th September 2014.
HINTS: Students should use initiative in answering this question.
· Remember auditors are trying to find conditions or events that might give rise to material misstatement. Whilst not necessarily related to ANZ, ASA 315 provides some examples of common conditions and events that may indicate the existence of ‘risks of material misstatement’. Please go to Appendix 2 of ASA315 of your Auditing Handbook for a broad categorisation of possible events or conditions that might possibly apply to ANZ. Please be warned however that you MUST demonstrate clearly (with substantive research evidence that is appropriately referenced) that an identified issue relates specifically to ANZ and the planning of its audit.
· Inclusion of evidence of research is critical. Do NOT merely use information from the company’s financial reports – to score well you must find independent research evidence to support the issue. Better quality research = better quality marks.
· Be sure to use in-text referencing (see Harvard Referencing Guide on the Unit Website).
(b) State what audit evidence you would gather in order to gauge the issues identified in part (a) above, for inclusion in the planning strategies for the audit of ANZ.
HINTS: When auditors identify conditions or events that give rise to the risk of material misstatement, they design information (evidence) gathering procedures in order to establish whether or not the identified risk exists and may result in material misstatement in the financial reports. This question is asking you to use your ‘best judgement’ to identify relevant audit evidence you might seek in the audit of ANZ. All the different types of audit evidence that might be referred to, is shown in paragraphs A10 to A25 of ASA 500. The challenge for students is to make the
evidence gathering activities SPECIFIC to the risks you identified in part (a) above. We do not expect you to know EXACTLY what documentation etc you would find at ANZ, but you should be able to identify documents or records or information you would look at and/or people you would speak to, from your experience and studies in the Unit. Broad brush answers (eg “look at sales documents for evidence of unusual sales”) will not be sufficient.
Think about the specific information you might seek in a real world situation. Where appropriate, be sure to use