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Purpose: The individual research report requires students research real-life auditing issues using a case study approach based on a listed company’s financial report. This assessment relates to the learning outcomes a, b and c. The information below serves as a clarification to the assessment information contained in the unit outline.
Due date: Week 10, 5 May 2022, 11.59pm
Word limit: 2000 word
Submission method: You are required to submit your work as a word file via the TurnitIn submission
Task details: students are required to select one company from ASX 200. You need to download your chosen company’s latest financial report. Your report must address the following:
1. Provide a brief summary about your chosen company’s key operations: COMPANY BHP
2. Identify at least TWO key audit matters (a useful starting point will be the auditor’s report)
3. Discuss how these audit matters relating to financial reporting issues that involve significant management judgement
4. Discuss how these audit matters affect the audit risk i..e, increase or decrease the audit risk and why. It will be useful if you relate your discussion to the audit risk model.
5. Discuss the potential responses to these audit matters. In this part you need to discuss how you, as an auditor, formulate your own audit strategy, i.e., control reliance or predominant substantive approach or a mix of both.
Formatting and structure requirements: Your report should include a title page, executive summary, table of contents, appropriate headings and sub-headings, a reference list and necessary appendices. You are not required to attach the entire financial report, but relevant snippets of the financial report will be useful to support your discussion. The report should be single spaced and use Times New Roman with a font size of 12.
Rubrics: refer to the unit outline
Important Note: a simple copy and paste of the information in the auditor’s report is not sufficient, in fact not allowed. You need to provide genuine discussion based on your understanding and key concepts discussed in class.
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