The assessment will allow students the opportunity to prepare a “Key Audit Matters” report further enhancing their knowledge by applying the theory learnt to develop a practical document prepared on many audit engagements.
You will acquire a range of excel skills such as writing formulae to perform accounting analytics and summarising your results using pivot tables, graphs and slicers. Those skills will enable you to prepare an accounting analytics dashboard which will enable reviewers to understand your approach, analysis and conclusions.
You will be required to analyse the financial information of ABC Learning over the period 2000 – 2007 using Analytical Review techniques such as DuPont Analysis, Common Size, Trend Analysis and the Beneish M-Score models to identify:
- any potential earnings manipulation
- in which accounts and
- for which years.
Once you have completed the analytical procedures you are required to submit a “Key Audit Matters Report” outlining the key material accounts which will require further investigation and the audit approach / procedures / assertions you believe will be appropriate given your analysis.
Students will be required to act as an Audit Senior involved in the Audit of ABC Learning who is completing the Audit Planning and is responsible for the effective Analytical review of the historical financials covering the years 2000 – 2007.
The results of your review will need to be summarised for your Audit Manager highlighting areas of concern and recommendations in terms of changes to the Audit Approach.