ACCT 3004 UL Australian Auditing Regulations GrainCorp Company Essay

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ACCT 3004 UL Australian Auditing Regulations GrainCorp Company Essay

 

ACCT 3004 Auditing

Assessment Task Three

Due Date: 5pm on Friday 21 May 2021

Weight: 15%

Word limit: 2000 words (minimum 1800 words, maximum 2200 words)

Instructions:

After the half-year audit, the engagement partner in charge of the audit has identified potential

financial fraud and misstatements presented in the accounting records. Under this circumstance, the

partner decided to ask you to conduct further substantive tests prior to year-end audit.

Answer following questions:

1. Comments on strengths (minimum 2 items) and weaknesses (minimum 2 items) of the

client’s internal controls. Refer to ASAs 260, 315 or other references.

2. Examine the techniques of testing controls that should be applied by the auditing firm.

Given an example for each technique identified.

3. Determine relevant substantive testing for THREE (3) accounts selected from balance sheet

accounts of the chosen company, such as cash, trade receivables, inventory, property, plant

and equipment (PPE), intangible assets, goodwill, investment, loan, payables, provisions,

leases, long-term liabilities, equity, revaluation surplus, deferred tax assets, deferred tax

liabilities. You should identify the objectives, substantive tests of transactions and account

balances for each account identified. Refer to relevant ASAs or other resources.

4. Prepare an auditor’s opinion to the shareholders of the chosen company. Refer to ASA 700

or other references.

This assessment is being able to obtain sufficient audit evidence and follow appropriate procedures,

to evaluate the impact on audit opinions, reporting and application of the auditing standards. As such,

a key requirement of this assessment is your ability to draw in relevant sections of certain auditing

standards. The outcome of this assessment will be you presenting an appropriate audit opinion for

the chosen company that is being audited. However, it is about more than simply quoting standards.

It is about using the knowledge in those standards to apply them to your chosen company. That is, it

is about applying your judgment! As such, every student’s assessment will differ according to the

issues that apply to their chosen company.