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

HOLMES INSTITUTE

FACULTY OF HIGHER EDUCATION

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)

• Explain your selected company’s (same selected company from question a) application of ASX CGC principles using Corporate Governance Principles and Recommendations (4th Edition) was released on 27 February 2019? (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.

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

HI6026 AUDIT, ASSURANCE AND COMPLIANCE

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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

HI6026 AUDIT, ASSURANCE AND COMPLIANCE

HI6026 AUDIT, ASSURANCE AND COMPLIANCE