Audit Impact Analysis and Key Audit Matters Report Crest Outfitters

ACCT1056: Auditing

Semester 1, 2023

FINAL ASSESSMENT 50% due 9am Monday 27 March 2023

STUDENT NAME:

STUDENT ID:

QUESTION 1

QUESTION 2

QUESTION 3

ACCT1059 AUDITING

Semester 1, 2023

Individual Assessment Guidelines

Due Date of written assignment: 9 am Singapore time on Monday 17 April 2023

Interview week: Monday 17 April 21 April 2023Weighting: 50%Words count: 2,000 words------------------------------------------------------------------------------------------------------------------------

Assignment aimsThis assignment is designed to facilitate your learning of the key skills and knowledge needed when facing a financial report audit of a company, and how to analyse, research and pinpoint facets of the company that require auditing attention.

Background

This assignment used the Case Study Crest Outfitters in Moroney, Campbell and Hamilton (2020), Auditing: a practical approach, 4e, John Wiley & Sons, Australia which have been discussed in Tutorials throughout the semester.

For the purposes of this assignment, you are working as a member of AuditTek audit team who audits Crest Outfitters for the financial year ending 30 June 2022.

Questions:

1. Write a letter addressed to Felix Wong, the Audit Partner of AuditTek, highlighting the impact of COVID-19 on the audit of Crest Outfitters. In your letter, discuss how COVID-19 can affect:

(a) Two income statement accounts and related assertions (5 marks)

(b) Decision regarding the audit procedures for the identified account balances and assertions (5 marks)

2. Prepare a detailed key audit matters section which includes TWO (2) key audit matters and audit procedures resulting from the control risk assessment of Crest Outfitters. Please answer in the tabular format of three columns (1) KAM title, (2) KAM detailed description, (3) Audit procedures. (5 marks)

3. Discuss the advantages and disadvantages of the auditor explicitly confirming that no prohibited non-audit services have been provided to Crest Outfitters in the auditors independence declaration in the audit report. Refer to the nature of prohibited non-audit services in your answer. (7 marks)

Refer to at least 3 academic journal articles published within the last five years to support your discussion.

Overall: References, in-text and bibliography; Writing Style; Clarity & Structure (3 marks)

Assessment details

This individual assignment is worth 50 marks and comprises 50% of your overall grade in this course. The following components are covered:

Written report (25%) submitted in Canvas.

Late submission will be penalised 10% of the awarded marks per calendar day. Submission is not accepted after being 10 days late.