Major Audit Risk Areas Assignment

Assignment Background

In the unit we cover a wide range of Auditing and Professional Practice issues including numerous case studies in varying depth.There is obviously not enough time to cover everything in depth.This assignment enables students to examine in more detail Auditing and Professional Practice in companies that are of particular interest to them.It can also be started from ‘Day 1’ of the semester and will enable students to explore the wonderful world of Auditing and Professional Practice by doing their own research on how it is practiced in an organisation that is of interest to them.

 Your Mission

Each student will select an Australian listed public company from the ASX200.You will identify the major audit risk areas (at least 2) for your selected company. 

For each audit risk, your assignment should:

• explain the potential impact of the audit risk on the company’s financial statements and
• detail the auditing procedures to verify the account balances impacted by the risk 

Note: While you can do background research etc. you shouldn’t start writing this assignment until after week 2. By this time you should have a better understanding of what auditing is based on what you have learnt from the lectures and text (and other) reading/research.

 In doing this assignment you should use the concepts you have learnt from this subject and your own research.Important: you are the independent or external auditors of the company and your ‘job’ is to express an opinion on the truth and fairness of the accounts.Some business risks are material and relevant to the external audit but others e.g. shoplifting in a retail environment whilst important (to the business) would not be material from an external audit perspective.

 Remember to link the risks back to the account balances you are expressing an opinion on.