SUNWAY UNIVERSITY BUSINESS SCHOOL
BACHELOR OF SCIENCE (HONS) IN ACCOUNTING AND FINANCE
ACADEMIC SESSION: MARCH – JULY 2013
ACC 2034: PRINCIPLES OF AUDITING
INSTRUCTIONS TO CANDIDATES
There are FOUR (4) pages in this Group Assignment including the cover page. 2.
This Group Assignment will contribute 30% to your final grade. 3.
The assignment must be typewritten on double line spacing, A-4 size paper and single sided.
Work should be presented in a folder, with a cover sheet, which includes your
name, unit number, tutor's name, and the essay/group report topic.
Marks will be allocated for content, presentation and referencing.
This Group Assignment is developed as an integral part of the course to enable students to apply what they have learnt in the course in a real-world scenario and to exercise critical analyses in developing viable recommendations and making sound conclusions.
The Group Assignment requires students to form separate groups of up to three students. Each group shall be evaluated based on their ability to articulate arguments in support of their opinions, preparation of a comprehensive written report, and a brief presentation on their findings, conclusions and recommendations.
The objectives of the Group Assignment are to enable students to:
Identify the factors to be considered in undertaking the audit of a selected public listed company; •
Assess the areas of audit risk using analytical and other procedures; •
Discuss the appropriate audit strategies to be adopted in response to the risk assessment; and •
Apply the skills for report writing and presentation.
The aim of the Group Assignment is to allow students to appreciate the importance of identifying and structuring a unique strategic approach that is most suitable for the various stakeholders, and to recognise that everyone has different views and interpretations of the same approach.
On the basis of official company sources and external literature, prepare an Audit Planning Memorandum for a selected public listed company as if it was a new engagement for your audit firm. You may choose any company listed on the Bursa Malaysia main market (http://www.bursamalaysia.com/market/listed-companies/list-of-companies/ main-market).
Your Report should include the following:
Engagement Objectives and Deliverables (10%)
Background Information and assessment of Internal Control environment- Your statements should, where possible, incorporate the latest information about the Companies, its industry, and general economic conditions. (25%)
Analytical Review of financial information to identify key risks - Your Report should include a drill-down analysis which assesses operating management, investment management, and financial leverage to identify potential areas of risks. Analysis and interpretation of the ratios you have calculated should be presented in the body of your report. The actual ratios for each year, along with a definition of each ratio should be included in an appendix to the report: the appendix will not count towards the word limit. (25%)
Risk Assessment and Materiality – Your Report should include an appropriate materiality threshold including explanation as to how it had been derived and the assessment of audit risk based on the materiality threshold. (20%)
Proposed Audit Strategy – Your Report should include the nature, timing and extent of the audit procedures to be adopted to conduct an efficient and effective audit. (20%)
Points to note:
The Report should not exceed 4,000 words and must be clearly divided into five sections, with one section devoted to each of the tasks specified above. •
The marks awarded for the assignment will be determined based on an assessment of the report’s accuracy, comprehensiveness, cohesiveness, professionalism and overall quality. •
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