BUACC3741: Auditing

Semester 3-2016

ASSIGNMENT

This assignment is to be completed in groups of three and comprises twenty per-cent of the marks for this course. There are three questions. (Approx. 2000 words in total)

Assessment Criteria:

Student work will generally be assessed in terms of the following criteria:
  1. Effectiveness of communication – i.e. readability, legibility, grammar, spelling, neatness, completeness and presentation will be a minimum threshold requirement for all written work submitted for assessment. Work that is illegible or incomprehensible and does not meet the minimum requirement will be awarded a fail grade.

  2. Demonstrated understanding - This will be evidenced by the student's ability to be dialectical in the discussion of contentious issues.

  3. Evidence of research - This will be evidenced by the references made to the statutes, auditing standards, books, journal articles and inclusion of a bibliography.

Note:
  1. All written work must conform with the Federation University General Guide for the Presentation of Academic Work.

  1. For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalised.


Plagiarism is presenting someone else work as your own and is a serious offence with serious consequences. As set out in the University Regulation 6.1.1, students who are caught plagiarising will, for a first offence, be given a zero mark for that task. A second offence will result in a failing grade for the course(s) involved and any subsequent offence will be referred to the Student Discipline Committee. Student must be aware of the University Regulation 6.1.1 Student Plagiarism.

Students must:
  • fully reference the source(s) of all material, even if you have re-expressed the ideas, facts or descriptions;

  • acknowledge all direct quotations; and

  • not submit work that has been researched and written by another person.

Question 1. (7 marks)

The International Accounting Standards Board (IASB) recently issued Exposure Draft IFRS Practice Statement Application of Materiality to Financial Statements to provide guidance to assist management when applying the concept of materiality to general purpose financial statements.

Information is material if omitting or misstating it could influence decisions that users make on the basis of financial information about a specific reporting entity

Guidance is proposed in the following three main areas:
  • Characteristics of materiality

  • How to apply the concept of materiality when making decisions about presenting and disclosing information in the financial statements, and

  • How to assess whether omissions and misstatements of information are material to the financial statements.


  • Explain and discuss

  • Question 2. (7 marks)

    Two main issues for auditors going forward concern ‘Big Data’ and ‘End-to-End Software Integration’

    Explain and discuss

    Question 3. (6 marks)

    From transformativetechnology to complexregulation to unprecedentedgeopolitical risk, an increasingtide of disruptive trends aredemanding substantivechange to the global roleof audit committees.

    Explain the nature of disruption in this context

    Sourced from KPMG Audit Trends 2016

    https://assets.kpmg.com/content/dam/kpmg/pdf/2016/05/Audit-Trends-2016.pdf

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