HI6026 – T3 2020 Assurance, Audit Fees and Good Governance (Audit, Assurance & Compliance)

HOLMES INSTITUTE

FACULTY OF HIGHER EDUCATION

   Group Assessment Details and Submission Guidelines
      
Trimester  T3 2020
      
Unit Code  HI6026
      
Unit Title  Audit, Assurance and Compliance
     
Assessment Type Group Assignment
     
Assessment Title Assurance, Audit Fees and Good Governance
      
PurposeoftheStudents are required to explain demand of assurance, audit fees determination and
assessment (with ULOapplication of ASX CGC principles. Students are required to analyse the root causes of
Mapping)  demand for assurance and the pertinent issues from their selected company’s and then
   specify what measures can be taken by auditors in selecting audit fees and in other ways
   application of ASX CGC principles and ensure professional integrity, good governance
   and reputation.
   Learning Outcomes:
   ·  Demonstrate an understanding of the reporting requirements of
   auditing standards (ULO 1)
   ·  Demonstrate an understanding of the auditor’s professional, legal and
   ethical responsibilities to their clients and third parties (ULO 2)
      
Weight  40% of the total assessments
      
Total Marks  40  
      
Word limit  3,000 words ± 500 words
    
Due Date  Group Formation: Please form the group by self-enrolling in Blackboard. There
   should be maximum of 4 members in a group. Email[email protected] for
   any issues with self-enrolling into groups.  
   Assignment submission: Final Submission of Group Assignment: Week 10, Sunday 7th
   of February 2020 at 11:59 pm.
   Late submission incurs penalties of five (5) % of the assessment per calendar day unless
   an extension and/or special consideration has been granted by Student Services of
   your campus prior to the assessment deadline.
Submission  ·  All work must be submitted on Blackboard by the due date along with a completed
Guidelines  Assignment Cover Page.
   ·  The assignment must be in MS Word format, single spacing, 12-pt Arial font and 2cm
   margins on all four sides of your page with appropriate section headings and page
   numbers.
   ·  Reference sources must be cited in the text of the report, and listed appropriately
   at the end in a reference list using Harvard referencing style.
      

HI6026 Audit, Assurance and Compliance

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Assignment Specifications

Purpose

This assignment aims to enhance students’ critical thinking skills and higher order application abilities by researching and analyzing a demand for assurance, audit fees determination and good governance practice. Students will need to propose and document demand for audit and assurance services, explain techniques of determination audit fees and practical application of good governance.

Students will have to research relevant academic literature, including related organisation websites and write in- text citations in this assignment. Additionally, they will demonstrate understanding and critical evaluation of the Australian financial governance reporting environment and its current regulatory framework, and recommend future directions to the Australian governance principles reporting regulators.

Required Task:

Part 1: Demand of adequate Assurance: (15 marks)

In 2002, the audit firm Arthur Andersen collapsed following charges brought against it in the United States relating to the failure of its client, Enron. Some other clients announced that they would be dismissing Arthur Andersen as their auditor even before it was clear that Arthur Andersen would not survive.

Required:

  1. Explain demand from audit and assurance services under Sarbanes- Oxley Act (2002)? (5 marks)
  • Explain auditors understanding of corporate governance revision, update and arguments after SOX Act (2002) (10 marks)

Part 2: Audit Fees Determination and ASX CGC Principles (20 marks)

All companies are required to disclose in their annual reports the amounts paid to their auditors for both the financial report audit and any other services performed for the company.

Required:

  1. Obtain a copy of a recent annual report (2019) from ASX Top 100 listed companies list (most companies make their annual reports available on the company’s website) and find the disclosures explaining the amounts paid to auditors. How much was the auditor paid for the audit and non-assurance, or other, services? Explain your understanding about demand and supply theories of audit fees from this company? (10 marks)

Source: https://www.asx100list.com/. You can choose any company from list. You DO NOT need any approvalfrom Unit Coordinator.

HI6026 AUDIT, ASSURANCE AND COMPLIANCE

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The assignment structure must be as follows:

  1. Holmes Institute Assignment Cover Sheet –Full Name, Student No., Contribution.
  2. Executive Summary
    1. The Executive summary should be concise and not involve too much detail.
  • It should make commentary on the main points only and follow the sequence of the report.
  • Write the Executive Summary after the report is completed, and once you have an overviewof the whole text.
  • The Executive Summary appears on the first page of the report.
  • Contents Page –This needs to show a logical listing of all the sub-headings of the report’s contents. Notethis is excluded from the total word count.
  • Introduction –A short paragraph which includes background, scope and the main points raised in orderof importance. There should be a brief conclusion statement at the end of the Introduction.
  • Main Body Paragraphs with numbered sub-headings–Detailed information which elaborates onthe mainpoints raised in the Introduction. Each paragraph should begin with a clear topic sentence, then supporting sentences with facts and evidence obtained from research and finish with a concluding sentence at the end.
  • Conclusion –A logical and coherent evaluation based on a thorough and an objective assessmentof theresearch performed.
  • Appendices –Include any additional explanatory information which is supplementary and/ or graphical tohelp communicate the main ideas made in the report. Refer to the appendices in themain body paragraphs, as and where appropriate. (Note this is excluded from the total word count.

HI6026 AUDIT, ASSURANCE AND COMPLIANCE

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Group Formation and Group Assignment

To ensure that all students participate equitably in the group assignment and that students are responsible for the academic integrity of all components of the assignment. You need to complete the following Group Assignment Task Allocation table, which identifies which student/students are responsible for the various sections of theassignment.

Assignment SectionStudent/Students
  
  
  
  
  

This table needs to be completed and submitted with the assignment as it is a compulsory component required before any grading is undertaken. Students that are registered in a solo group are not required tofill this table.

Both assessment items must be submitted on Blackboard. The written assignment must be in a reportformat and submitted through safe-assign prior to final submission. The originality percentage should be as low as possible. The written submission must be double-checked, edited and rephrasedif the originality percentageand plagiarism risk is noted as high, as per safe-assign.

Marking Criteria

Group Assignment Marking CriteriaWeighting
Executive Summary2%
Introduction and Main Body of the Report35%
Overall Presentation (Report presentation, Correct referencing, consistency)3%
Total Weight40%
  

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Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Sills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six categories of Academic Integrity breaches

 PlagiarismReproducing the work of someone else without attribution.
  When a student submits their own work on multiple occasions
  this is known as self-plagiarism.
   
 CollusionWorking with one or more other individuals to complete an
  assignment, in a way that is not authorised.
   
 CopyingReproducing and submitting the work of another student, with
  or without their knowledge. If a student fails to take reasonable
  precautions to prevent their own original work from being
  copied, this may also be considered an offence.
   
 ImpersonationFalsely presenting oneself, or engaging someone else to present
  as oneself, in an in-person examination.
   
 Contract cheatingContracting a third party to complete an assessment task,
  generally in exchange for money or other manner of
  payment.
   
 Data fabrication andManipulating or inventing data with the intent of supporting
 falsificationfalse conclusions, including manipulating images.
   
Source: INQAAHE, 2020 

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  Marking Rubric  
      
 ExcellentVery GoodGoodSatisfactoryUnsatisfactory
 HDDCPF
ExecutiveVery effectivelyCompetentlySynopsis is wellSynopsis isSynopsis is
Summarywritten synopsiscomposed awritten with allclearlydeficient and
(2 marks)with clearstrong synopsis.the expectedwritten, but itpoorly written.
 communication ofThe main pointspoints raised.is brief or hasToo brief.
 the main points inare some errors. 
 a concisecommunicated   
 paragraph.well.   
      
Main BodyExcellent. WellThere are validThere are validSomePoorly organized;
Includingorganised. Mainpoints raised withpoints raised,organization;no logical
Introductionpoints are logicallya good argumentparagraphing ismain pointsprogression;
(35 marks)ordered; sharp/ thesisnoted, and theare there butbeginning and
 sense ofstatement,points in thethey areending are vague.
 structuring andparagraphing isintroduction aredisjointed;No structure.
 arrangement of keynoted, and theexplained inMinorLacks substance.
 information.points in themore detailstructuringNo research
 Supporting detailsintroduction arewith supportingissues.noted.
 are specific to theexplained in moreevidence.  
 main points anddetail with   
 adequate facts andsupporting   
 other evidence isevidence.   
 provided and well-    
 articulated.    
      
ReferencingReferences areReferences areGenerallySomeReferences are
and CitationconsistentlyconsistentlycorrectReferencesmissing or do
(3 marks)correct usingcorrect usingreferencingare used, butnot comply with
 Harvard style. NoHarvard style.using Harvardnot usedcorrect
 missing citations.No missingstyle. Moreconsistently.referencing
 A strongcitations.referencesNot enoughstyle.
 reference listReferences usedrequired.research 
 with relevant andare good, but done. 
 credible sourcesnot extensive.   
 used. Evidence of    
 extensive    
 research.    
      

HI6026 AUDIT, ASSURANCE AND COMPLIANCE

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