The aim of the group report is to test students’ ability to integrate skills learnt in Auditing and Assurance Services to analyse a real company from the auditor’s perspective and within the framework of auditing standards. Th successful completion of this assignment requires extensive research on internal and external environments, operations, strategies and analysis of the annual report and other relevant information, including financial information. Students are expected to demonstrate their ability to critically evaluate various pieces of information and apply analytical skills to critically evaluate potential audit risks. An important aspect of the assignment will be to demonstrate your ability to present a written report in a professional manner. Details regarding the nature of the assignment and its assessment will be provided.
Larry and Joe are two audit seniors working for Sampson & Associates. Both started employment with the audit firm around the same time. They have mutual respect for each other; however, they have been highly competitive since they commenced work together.
Larry has recently married and he and his wife are paying off their mortgage. Joe is single with no commitments. They have both been seniors for almost two years and are looking for promotion to audit supervisor. They are both aware that there is only one supervisor position available.
The best way to present your answer is following the steps of American Accounting Association decision-making model. The key steps in AAA model has been mentioned for your reference.
a. Determine the facts.
b. Define the ethical issues.
c. Identify the major principles, rules and values.
d. Specify the alternatives.
e. Compare values and alternatives.
f. Assess the consequences.
g. Make your decision.
1. Demonstrate a cohesive knowledge on the legislative and ethical requirements and responsibilities in completing and reporting on assurance and audit tasks.
2. Explain and exemplify audit sampling techniques, substantive tests of client’s transactions and balances including auditor’s reporting obligations.
3. Apply tools, techniques, and frameworks to specific audit contexts.
4. Distinguish any weaknesses in the internal control procedures and potential risk factors.
5. Learn how to conduct substantive tests of transactions and balances and design an audit strategy to address the risks of errors in the financial statements.