ACC568 Auditing Assignment 2

Assessment item 2

Case Study and Report

Value: 10%

Due date: 21-Aug-2016

Return date: 13-Sep-2016

Length: 2000 words

Submission method options

Alternative submission method

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Task

Question 1 5%

Case:

Battersby and Associates Chartered Accountants is a successful mid-tier accounting firm with a large range of clients across Australia. During the 2015 financial year Battersby and Associates gained a new client, Medical Services Holdings Group (MSHG), which owns 100 per cent of the following entities:

Charles Sturt University Subject Outline

ACC568 201660 SM I-21 June 2016-Version 1

Green Grass Hospital, a private hospital group

Green Gardens Nursing Home Pty Ltd, a private nursing home

Complete Cancer Care Limited (CCCL), a private oncology clinic that specialises in the treatment of cancer.

Year end for all MSHG entities is 30th June.

CCCL owns two relatively old linear accelerators used in radiation therapy. Recently radiographers using these linear accelerators have raised concerns that they have adverse radiation impacts on patients.

The CEO of CCCL, Adam Chase, has approached Belinda Battersby, the audit partner responsible for the financial report audit, about undertaking an engagement in respect of the linear accelerators. Adam has requested Belinda provide an opinion that the linear accelerators are fit for use. Adam pointed out that the CCCL audit is up for tender the following year and suggested that Battersby and Associates might like to take on the linear accelerators engagement without charging a fee as a gesture of goodwill.

Source: Adapted from the CA Program’s Audit and Assurance exam, December 2008.

Required

What should Belinda do? Use the Code of Ethics for Professional Accountants and the American Accounting Association (AAA) Model to help consider your response to this question.

The best way to present your answer is in a table as below:



































































    
 American Accounting Association ModelDecision making process 
   
1.Determine the factsThe facts are ... 
    
2.Define the ethical issues  
    
3.Identify the major principles, rules and values  
    
4.Specify the alternatives  
    
5.Compare values and alternatives  
    
6.Assess the consequences  
    
7.Make your decision  
    
Question 2 5%

Good corporate governance reduces the audit risk. Independent directors have been recognised as critical to good corporate governance.

Task

Prepare a report for your fellow students that :

describes the current Australian recommendations for the inclusion of independent directors in a board of directors,

evaluates the continuing need for independent directors, and

identifies barriers to the effectiveness of the role of independent directors.

Rationale

This assessment has been designed to assess your ability to:

Be able to explain and critically evaluate influences on audit and assurance services including: Australian and international professional standards, statutory and common laws, regulatory bodies, and public expectations within a global market;

Be able to exercise critical and reflective judgment and appreciate the value of ethical practice.

Charles Sturt University Subject Outline

ACC568 201660 SM I-21 June 2016-Version 1

Marking criteria

Question 1
































































































































































































































































































































































































































































           
 Criteria HD Distinction Credit Pass 
          
 Use of critical and Complex and detailed Logical application of Minor problems with Ethical decision 
 reflective application of the the ethical decision the application of the guide partially 
 judgment in ethical decision guide guide demonstrating ethical decision guide. applied including 
 ethical practice in demonstrating strong coherent critical and There are some some references 
 the application of critical and reflective reflective thinking in relevant references to to ethical and 
 the AAA guide thinking the use of the the use of the guide. ethical and auditing auditing 
 (4.5 Marks). guide. There are There are a number of standards. standards. 
   extensive relevant relevant references to     
   references to ethical ethical and auditing     
   and auditing standards. standards.     
          
 Professional Work contains distinct Work contains distinct Minor spelling, Some spelling, 
 communication understandable understandable grammar and grammar and 
 (Note: you are statements with no statements with punctuation errors. punctuation 
 required to space errors. There is a minimal errors. Work shows evidence errors found but 
 between sophisticated use of   of proofreading. the work is 
 paragraphs; use language. Answer is well Well-structured with readable and 
 Arial 10pt or TNR Extremely well organised. one main idea or structured. 
 12 pt; use 1.5 or organised. Content is structured in argument provided per Work may 
 double line Content is structured in a manner that paragraph include 
 spacing) a manner that facilitates the reader’s arguments/ideas. too many ideas in 
 (.25 Marks). facilitates the reader’s understanding.   one 
   understanding.     paragraph. 
          
 Appropriate Used four or more Used two or more Used one or more No additional 
 resources and sources. sources. sources. sources other 
 correct referencing All work has been All work has been All work has been than the text 
 (.25 Marks) referenced correctly as referenced correctly as referenced within the used. 
   per APA (6th edn) per APA (6th edn) body of the answer and Others’ work is 
   requirements. requirements. in the reference list, not always 
       with some omissions or acknowledged 
       errors in terms. and there are a 
         number of errors 
         or 
         non-compliance 
         with the APA 
         (6th edn). 
           

Charles Sturt University Subject Outline

ACC568 201660 SM I-21 June 2016-Version 1

Question 2













































































































































































































































































































CriteriaHDDistinctionCreditPass
Description of theA completeA completeA description of theSome attempt to describe
current Australiandescription of thedescription of thecurrent Australianthe current Australian
recommendationscurrent Australiancurrent Australianrecommendations forrecommendations for the
for the inclusion ofrecommendationsrecommendations forthe inclusion ofinclusion of independent
independentfor the inclusion ofthe inclusion ofindependent directorsdirectors in a board of
directors in a boardindependentindependent directorsin a board of directors.directors.
of directors. (1directors in a boardin a board of directors.  
Mark).of directors. In   
 addition it may   
 refer to   
 recommendations   
 from international   
 jurisdictions that   
 are relevant to the   
 Australian context.   
Evaluation of theA complex andA logical attempt toA good attempt toSome attempt to explain
continuing needhighly detailedevaluate the need forexplain the need forthe need for independent
for independentevaluation of theindependent directorsindependent directorsdirectors is presented.
directorsneed foris presented.is presented. 
(2 Marks).independent   
 directors is   
 presented.   
Identification ofIdentification ofIdentification of manyA number of theSome attempt to identify
the barriers to thethe range ofof the barriers to thebarriers to the role ofthe barriers to the role of
role ofbarriers to the rolerole of independentindependent directorsindependent directors is
independentof independentdirectors is presentedare presented.presented.
directors (1 Mark).directors isdemonstrating a good  
 presentedunderstanding of the  
 demonstrating aissues.  
 deep   
 understanding of   
 the issues.   
ProfessionalWork is in a reportWork is in a reportWork is in a reportSome spelling, grammar
communicationformat andformat and containsformat. There areand punctuation errors
using a businesscontains distinctdistinctminor spelling,found but the work is
report format.understandableunderstandablegrammar andreadable and structured.
(Note: you arestatements with nostatements withpunctuation errors.Some attempt at a
required to spaceerrors. There is aminimal errors.Work shows evidencebusiness report format.
betweensophisticated use of proofreading.Work may include
paragraphs; useof language.Answer is wellWell-structured withtoo many ideas in one
Arial 10pt or TNRExtremely wellorganised.one main idea orparagraph.
12 pt; use 1.5 ororganised.Content is structuredargument provided per 
double lineContent isin a manner thatparagraph 
spacing) (.5 Mark).structured in afacilitates the reader’sarguments/ideas. 
 manner thatunderstanding.  
 facilitates the   
 reader’s   
 understanding.   
AppropriateUsed four or moreUsed two or moreUsed one or moreNo additional sources
resources andsources.sources.sources.(other than the textbook)
correct referencingAll work has beenAll work has beenAll work has beenused.
(.5 Mark).referencedreferenced correctly asreferenced within theOthers’ work is not
 correctly as perper APA (6th edn)body of the answeralways acknowledged and
 APA (6th edn)requirements.and in the referencethere are a number of
 requirements. list, with someerrors or non-compliance
   omissions or errors inwith the APA (6th edn).
   terms. 
     
Charles Sturt University Subject Outline  
ACC568 201660 SM I-21 June 2016-Version 1 Page 12 of 35

 

Presentation

 

The report should follow a statndard business report format, an example of which is included in the Resources section of the subject Interact site.

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