On successful completion of this unit, students should be able to:
– Develop an appreciation of the reasons for the existence of a societal demand for audit and assurance services, and an understanding of the current environment in which auditors operate, including legal, ethical and professional aspects
– Demonstrate an understanding of the key auditing principles, concepts and practices used by auditors to gather evidence and make judgments in order to form an audit opinion on the fair presentation of financial reports
– Develop an insight into the audit of specific transactions and account balances
– Be aware of the auditor’s responsibility in completing an audit
– Obtain basis understanding of other types of assurance engagement
There are two parts to the assignment. The first part requires students to set up an entity’s books in MYOB and process transactions to relevant accounts. The second part requires students to prepare a document for the Audit Manager.
Part A
You have recently graduated from VU and are now working for a small accounting firm. The firm recently purchases MYOB software for internal use. Upon learning that you had learnt MYOB as part of your study, the firm’s partner asks you to set up and process a number of transactions into relevant accounts.
1. Set up a company on MYOB.
2. The financial year must be 1 January 2018 to 31 December 2018
3. Process the transactions listed in Part A_MYOB_S12019 into relevant accounts.
4. Print out and submit reports for the year ended 31 December 2018.
Part B
1. You have recently been appointed external auditor of the entity. You are assisting your Audit Manager in planning for the audit of the entity’s financial statements.
2. You have accepted the appointment and communicated your decision to the client in the engagement letter. The audit fee is $170,000.
3. You are required to download the 2018 annual report published by the following entity:
– Konekt Limited (http://www.konekt.com.au)
4. Using information from the relevant chapters of the textbook, prepare a document for your Audit Manager. Your document must include key information set out below.
With reference to relevant chapters of the textbook, prepare a document for your Audit Manager. Your document must include the followings:
1. Executive summary
2. Introduction
3. Key information:
a) Gain an understanding the client
b) Identify five (5) significant accounts most at risk of being materially misstated
c) Set planning materiality
d) Assess what can go wrong (audit risk assessment) for each of the five (5) accounts selected in (b)
4. Conclusion
5. Appendix
6. References