Auditing | My Assignment Tutor

Subject OutlineACC568 – AuditingTable of ContentsSubject Summary …………………………………………………………………………………………………….2Subject Coordinator …………………………………………………………………………………………………2Subject Coordinator ……………………………………………………………………………………..2Email …………………………………………………………………………………………………………..2Phone ………………………………………………………………………………………………………….2Consultation procedures ………………………………………………………………………………2Subject Overview……………………………………………………………………………………………………..2Abstract……………………………………………………………………………………………………….3Learning outcomes……………………………………………………………………………………….3Subject content ……………………………………………………………………………………………3Academic Progress Requirements………………………………………………………………….3Assumed knowledge …………………………………………………………………………………….3Subject Schedule & Delivery ……………………………………………………………………………………..3Prescribed text……………………………………………………………………………………………..4Class/tutorial times and location …………………………………………………………………..4Schedule ……………………………………………………………………………………………………..4Learning materials………………………………………………………………………………………..7Learning, teaching and support strategies ……………………………………………………..7Recommended student time commitment …………………………………………………….9Assessment and Exam Items ……………………………………………………………………………………10Essential requirements to pass this subject…………………………………………………..10Items …………………………………………………………………………………………………………10Case A (ethics and the legal environment) ………………………………………..10Case B (risk, planning, controls and testing) ……………………………………..17Final Exam ……………………………………………………………………………………..27Assessment and Exam Information ………………………………………………………………………….33Academic Integrity ……………………………………………………………………………………..33Referencing………………………………………………………………………………………………..33How to submit your Assessment and Exam items………………………………………….33Postal Assessment – submission process…………………………………………..34Hand delivered Assessment – submission process …………………………….35Alternative Assessment – submission process……………………………………35Interact2 – Online exam submission process ……………………………………..35Extensions………………………………………………………………………………………………….35How to apply for special consideration…………………………………………………………36Penalties for late submission……………………………………………………………………….36Resubmission …………………………………………………………………………………………….37Feedback processes ……………………………………………………………………………………37Assessment return………………………………………………………………………………………37Student Feedback & Learning Analytics ……………………………………………………………………37Evaluation of subjects …………………………………………………………………………………37Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 1 of 39Changes and actions based on student feedback ………………………………………….37Learning analytics ………………………………………………………………………………………38Services & Support …………………………………………………………………………………………………38Develop your study skills …………………………………………………………………………….38Library Services ………………………………………………………………………………………….38Policies & Regulations …………………………………………………………………………………………….38Subject Outline as a reference document……………………………………………………..38Subject SummaryACC568 – AuditingSession 1 2021Faculty of Business, Justice and Behavioural SciencesSchool of Accounting and FinanceInternal ModeCredit Points 8Welcome to a new session of study at Charles Sturt University. Please refer to the University’sAcknowledgement of Country (http://student.csu.edu.au/study/acknowledgement-ofcountry).Subject CoordinatorSubject Coordinator Dr Sajjad KhanEmail [email protected] 03 9935 7927Consultation proceduresLecturer: Dr Sajjad KhanEmail : [email protected] best way to contact me is via email if you have any questions concerning the contents andteaching of this subject. However, you should consider if your question is already addressedelsewhere (e.g. Subject outline, Announcements and iLearn within Interact2 site) and if youare contacting the most appropriate person.Email Etiquette: In order to receive responses to your email on time ensure that you addressthe issue meeting the basic requirements of professional communication. You shouldinclude your ID number, full name, subject code and type of query in the header/subject toenable me to read and identify who has sent the email. This will also avoid your email beingtreated as SPAM.Subject OverviewCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 2 of 39AbstractThis subject adopts a risk-based approach to auditing and assurance services, exploring thepractice and theory of auditing as it applies to Australia within a global environment. Theconcept of risk management is emphasised as it permeates all functions of management,audit and corporate governance.Learning outcomesUpon successful completion of this subject, students should:• be able to explain and critically evaluate influences on audit and assurance servicesincluding: Australian and international professional standards, statutory and commonlaws, regulatory bodies, and public expectations within a global market;• be able to evaluate the expanding scope of assurance services and providers in today’sinternational business environment;• be able to demonstrate risk management methodologies and the role of internalcontrols in an audit context;• be able to design an audit plan and select and apply appropriate audit procedures fora financial statement audit; and• be able to exercise critical and reflective judgement and appreciate the value ofethical practice.Subject contentInformation regarding the subject’s content is outlined above in the Schedule.Academic Progress RequirementsThe Assessment Policy (https://policy.csu.edu.au/document/viewcurrent.php?id=301&version=11) (https://policy.csu.edu.au/document/viewcurrent.php?id=301&version=11)sets out the criteria for monitoring academic progress in allcoursework degrees. Passing more than 50% of subjects in each session of study and passingkey subjects (https://student.csu.edu.au/my-course/my-subjects-and-results/key-subjects) onthe first attempt are both indicators of satisfactory academic progress through your course.The University will contact and offer support to students who do not meet academic progressrequirements. There are three stages of academic progress: Stage 1 involves optional support,Stage 2 requires your engagement with the support offered and Stage 3 is where you will beconsidered for exclusion from your course.Assumed knowledgeAssumed knowledge is equivalent to that which would be gained through completion ofACC514.Subject Schedule & DeliveryCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 3 of 39Prescribed textFind information about the textbooks required for your subjects on the Current Students(https://www.csu.edu.au/current-students/learning-resources/information-planning/textbooks) site. Check the Library (https://library.csu.edu.au/) to find out if your text is aneBook.Textbook:Gay, G. E., & Simnett, R. (2018). Auditing and assurance services in Australia (7th ed). Roseville:McGraw Hill.ORGay, G. E., & Simnett, R. (2018). Auditing and assurance services in Australia (7th ed). Roseville:McGraw Hill. eBookThe textbook for this subject is available as an eBook from the CSU Library. This eBook accesshas a limited number of simultaneous users. To ensure the text is accessible to as many peopleas possible please follow the instructions in this short eBook etiquette video: https://youtu.be/o7mIprFUN6EThe downloadable form of this eBook can be purchased fromhttp://www.mheducation.com.au/9781760421809-aus-ebook-for-auditing-assuranceservices-in-australia-6th-edition-revisedHandbook:Chartered Accountants Australia and New Zealand (2017, 2018, 2019 or 2020). AuditingAssurance and Ethics Handbook. Brisbane: John Wiley & Sons Australia.The handbook can be taken into your final examination but the only marking allowed on thetext is highlighting, underlining and or tagging. Brief captions allowed on the tags only. Pleasetake care not to mark your text carelessly or you will be unable to use it in the finalexamination.Class/tutorial times and locationYour timetable can be found at https://mytimetable.csu.edu.au/odd/studentFurther information is available via the Student Portal Class Timetable(http://student.csu.edu.au/study/study-essentials/timetable) page.If you are studying at a Study Centre or other partner institution, your class timetableinformation will be provided by your institution.Schedule SessionWeekWeekCommencingTopicsReadings and assignments Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 4 of 39 11 MarchTopic 1 Audit function – anoverviewG & S Chapter 1.28 MarchTopic 2 Governance andEthicsTopic 3 Legal EnvironmentG & S Chapter 3.G & S Chapter 2.PH: Monday 08th March 2021(Labour Day)315 MarchTopic 4 Elements of theFinancial Report AuditG & S Chapter 4.Case Study A (15%), dueWednesday 17 March 2021.422 MarchTopic 5 Business Risk andAudit PlanningG & S Chapter 5.Census date 26 March.529 MarchTopic 5 continuedG & S Chapter 6.PH: Friday 02nd April 2021 (GoodFriday)65 AprilTopic 6 Internal ControlG & S Chapter 7.PH: Monday 05th April 20201 (Easter Monday)7/812 and 19AprilMid-session breakPH: Sunday 25 April 2021 (AnzacDay)926 AprilTopic 7 Audit Testing andSamplingG & S Chapter 8 & Chapter 10 pp.457 – 471.103 MayTopic 7 continuedG & S Chapter 9.1110 MayTopic 8 Completing theAuditG & S Chapter 11.1217 MayTopic 9 ReportingObligationsG & S Chapter 12.Case Study B (25%), dueWednesday 19 May 2021.1324 MayTopic 10 Expanding Role forAuditorsG & S Chapter 13.1331 MayRevision147 JuneExam Week 11514 JuneExam Week 2PH: Monday 14 June 2021(Queen’s Birthday) Please see below Additional/Replacement Class Requirements for this session: ClassesCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 5 of 39running on the following Public Holidays should have a replacement class:• Monday 08th March 2021 (Labour Day)• Friday 02nd April 2021 (Good Friday)• Monday 05th April 20201 ( Easter Monday)• Sunday 25 April 2021 (Anzac Day)This study schedule has been devised to assist in your planning during the session and isintended as a guide only.Attendance is required at all scheduled lectures and tutorials.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 6 of 39Learning materialsDetails of learning materials that support your success in this subject can be found in theInteract2 Subject Site.Learning, teaching and support strategiesThe study guide and/or subject materials for this subject have been written specifically toguide you through the sections (and questions) of the prescribed text book relevant to eachtopic. Your access and activity in Interact 2 will be used to measure your engagement in thesubject. In particular, your access to the subject outline and the resources will be monitored,and if you do not access these Interact 2 tools within the first week you will receive either aphone call or an email from me to discuss your engagement in the subject.You should check the Interact 2 site regularly for postings, announcements, subjectinformation and other resources that will assist your studies or additional information andresources vital to your success in the subject.It will enhance your learning to read the textbook chapters and the reading/s each weekbefore you come to class. The readings can be found in the Additional Resources folder onInteract 2. There may also be other case studies and material posted. I will pop anannouncement up regarding these. These should also be read before class. Classes will takethe form of a lecture-workshop so it will be important to be on time for class.Studying your topics:Your modules have been created to help you progress through the topics – please completethe readings (i.e. text book chapters and readings) that are in your Topic modules on a regularbasis to remain current in the content.Interactions with each other and with your lecturer:Studying at university does not mean studying alone. Take advantage of collective wisdomand bring your ideas to class for discussion. Furthermore, this subject has industry basedassessments to help you apply your studies in a practical sense.Library Services:The CSU Library website provides access to online material and print, using Primo Search tofind online journal articles, eBooks, hardcopy books from CSU Library (see Library Manager forInterlibrary Loan Requests), company & government reports, eJournals, dissertations, theses,newspapers including Business & Financial newspapers in Factiva (See Business & IT JournalDatabases), and other reference resources (eg. Australian Bureau of Statistics, Australianstandards, online encyclopaedias & dictionaries to be read on the computer). You will also findlibrary guides, Subject Reserve for any readings eg. ITC100, ACC100, etc., and online assistanceto help you use the Library’s resources such as Ask a Librarian – Live Chat and Ask a Librarian –Web Form.You can find Library Services on both the SGA library online catalogue:http://primo.unilinc.edu.au/primo_library/libweb/action/search.do?vid=SGACharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 7 of 39The SGA library online catalogue allows students to Sign In, My Account shows student’scurrent library record including all books on loan, Renew your borrowed books online beforethe due date, also Search and Request all books in the SGA library, even if unavailable due tohigh demand from students. Students can Request books when all books are on loan to otherstudents. When the requested book is returned to the SGA library, the student who requestedthe book receives an email immediately to pick up the book from the SGA library. View yourlibrary record online 24/7 at the above web link for SGA library.And also CSU Library online:http://student.csu.edu.au/library – CSU Library Services including Primo Search & SubjectReserve online with 24/7 access, online and video tutorials in research skills, finding journalarticles for assignments, topic analysis, download Endnote referencing program and manyother online library services to help you successfully complete your assignments for all CSUcourses. (http://trove.nla.gov.au/)http://trove.nla.gov.au/ – Powerful search engine from National Library of Australia to accessmany different online resources on any subject from one search.Contact Details for renewing loans, locating books and other information:Melbourne Library [email protected] (mailto:[email protected])Library Help:http://student.csu.edu.au/library/help-contacts Friendly and quick assistance is available. Askfor help finding information and navigating the library’s extensive eResources.Online Tutorialshttp://student.csu.edu.au/library/study-research/training-tutorials-videosLearn how to:• use Primo Search to find eReserve material and journal articles• search journal databases and web resources for information for your assessments• identify appropriate sources of information and peer reviewed material, and evaluateresources.Bookmark your Subject Library Resource GuideSubject Library Guides are a great way to get started with research. Each online guide istailored to a specific area of study, including Accounting, Business & Information Technologyoutlining how to research in your area and where to look for information.http://libguides.csu.edu.au/Academic Learning Support Assistance:Visit the learning support website for advice about assignment preparation, academic readingand note-taking, referencing, and preparing for exams at: http://student.csu.edu.au/study(http://student.csu.edu.au/study%E2%80%8B)You may also contact:For appointments, please send an email [email protected](mailto:[email protected])Queries regarding the content of this subject should be directed to your subject lecturerCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 8 of 39Recommended student time commitmentEach week you should spend around 10 – 12 hours studying this subject – obviously someweeks may require more time than others depending on how you work – but the following is aguide for your information. Reading the text and other readings3.5 hoursPreparation of answers to topic review questions3.0 hoursAttendance in online classes3.0 hourPreparation of assessment items2.5 hours Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 9 of 39Assessment and Exam ItemsEssential requirements to pass this subjectYou must obtain at least 50% in both the examination and the total mark in order to pass thissubject. You must pass the exam to pass the subject.To be eligible for the grade AA or AE you must have submitted all assessment items in thesubject, including the final exam. If you choose not to complete an assessment item or do notsit the final exam then you will not be granted an AA or an AE grade.Items Item No.TitleValueDue Date*Return Date**1Case A (ethics and the legal environment)15%17-Mar-202109-Apr-20212Case B (risk, planning, controls and testing)25%19-May-202110-Jun-20213Final Exam60%To be advised– * Due date is the last date for assessment items to be received at the University** Applies only to assessment items submitted by the due dateAssessment item 1 – Case A (ethics and the legal environment)Value: 15%Due Date: 17-Mar-2021Return Date: 09-Apr-2021Length: 1,500 wordsGroup Assessment: NoSubmission method options: Alternative submission methodTASKBackgroundYou are the audit manager of JDM, an accounting firm with offices in the Sydney metropolitanarea. JDM is a middle tier auditing firm specialising in the audit of firms in the manufacturingand property development industries. During May 2020 you met with the audit senior of JDM,Tyrone Vickery, to discuss a number of findings and issues Tyrone has identified relating toseveral of JDM’s clients.Lightning LtdOne of JDM’s biggest clients is Lightning Ltd. Lightning is involved in the propertydevelopment industry and until last year had been very profitable, however the economicdownturn has started having a financial impact. Tyrone tells you he has just had the final auditmeeting with the CEO of Lightning, Ben. At this meeting there were discussions about themain findings and the adjustments which need to be made to the accounts. Tyrone says oneCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 10 of 39major issue with the audit is lingering doubts over Lightning’s status as a going concern.Lightning has been close to violating it’s loan contracts which require it to maintain a currentratio of 1.7:1. Tyrone says the issue has caused him many sleepless nights of late – he says thepeople who run Lightning are likable, and he is aware of the negative impact that Lightning’sclosure would have on its stakeholders including its creditors and employees. Tyrone is alsoworried that Lightning’s violation of loan terms could have a negative impact on his owncareer prospects, with Lightning being such an important client.Tyrone says Lightning’s year-end is 30 June and that JDM carried out most of its work duringFebruary. At that time all of the projections looked fine, however recently Tyrone found outthat one of Lightning’s major customers, Autumn Ltd has been placed into administration. Atyear-end Autumn owed Lightning $2.3 million. Tyrone says that if this amount were to bewritten off Lightning would definitely be breaching its loan contracts. Tyrone says he askedBen whether any provision had been created in relation to the amount due from Autumn orwhether any updates to the projections originally audited in February had been made. Benadvised Tyrone that he didn’t think that was necessary and justified this by saying that theadministrator of Autumn believed that Autumn would be able to meet all of its outstandingdebts. Tyrone said he hoped this was true, but he advised Ben that he still needed to obtainassurances from the administrator directly. Tyrone tells you that Ben reacted to this angrily,asking why that would be necessary as he was happy to provide a letter validating theadministrators views. Tyrone says he advised Ben that he has to do his job, but that this madeBen even angrier, and Ben starting shouting, saying that “this is the first sign of trouble for ourcompany and JDM are willing to help the bank shut our doors. This will be a disaster for ourcreditors and our employees!” Tyrone tells you than upon concluding the meeting Ben said tohim that all Lightning was asking for was time – to be given a chance to trade out of thesituation – and that as far as he was concerned, the accounts would not be altered. Ben alsosaid that if Lighting were to collapse, he would let all their stakeholders know who caused theclosure of this business – the auditors.Cardinal LtdAfer discussing the audit of Lightning, Tyrone informs you of the latest developmentsregarding another of your clients, Cardinal Ltd, a company which provides warehousing anddistribution for chemicals used in the manufacture of household cleaning products. Tyronetells you that Cardinal was carrying a very high level of inventory in its audited balance sheetat the time a successful takeover offer was made by Spruce Ltd.Tyrone says that two months afer the takeover, it was discovered that the inventories held byCardinal were considerably over valued and that they did not in fact possess the quantity ofinventory claimed at the time of the audit. Tyrone also says that Spruce is filing court actionagainst JDM and that they have evidence supporting the following:• JDM did not attend all stocktakes at year-end. While JDM were present at stocktakesfor the Sydney based operations of the company, the inventory at the Sydneywarehouse was also found to have been overvalued by 27%.• While JDM correctly accounted for the quantity of the Sydney stock, they acceptedmanagements’ valuation, which did not take account of significant quantities ofchemicals which were in poor condition and were therefore not of merchantablequality.• 50% of the company’s inventory is purportedly held at the company’s facility inGoulburn and is it this inventory that Spruce is claiming does not exist.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 11 of 39Tyrone says that Spruce are also claiming that JDM were subjected to considerable pressureby Cardinal’s management to complete the audit within one month of the balance date.Tyrone says that JDM has undertaken this audit for the past six years, that there was noevidence of any previous misstatements of the value of inventory and that Spruce is claimingthat they had relied on the audited financial statements in making their takeover offer. Tyronetells you that there is no evidence that anyone at JDM was aware of this intended use of theaccounts.Lid LtdLastly, Jack tells you about Alex Wilson, who set up his own IT business (Lid Ltd). Afer creatinga piece of sofware which experienced exponential sales growth, Alex decided to list Lid on theASX. Afer listing, the board of Lid has been reorganised several times and is now comprised ofAlex as CEO, CFO Angelo Utah; and three non-executive directors. Chris Newman (a lawyer);Nigel Foley (a wealthy industrialist) and Steven Morris, a Chartered Accountant and Chairmanof the Board, who has, as recently as 1 year ago, worked as a senior employee of DFB, anAccounting/Business Advisory firm which provided extensive advisory/consultation services toAlex on the best ways to manage Lid Ltd through its expansion and listing on the ASX.RequiredQuestion 1 (6 marks)Advise Tyrone as to what he should do in response to the information he has providedregarding the audit of Lightning Ltd, making reference to the Code of Ethics for ProfessionalAccountants. Use the following American Accounting Association (AAA) Model template toguide your response. American Accounting Association ModelDecision-making process1. Determine the factsThe facts are …2. Define the ethical issues3. Identify the major principles, rules, and values4. Specify the alternatives5. Compare values and alternatives6. Assess the consequences7. Make your decision Question 2 (6 marks)Based on the information provided by Tyrone in relation to Cardinal Ltd, and making referenceto specific common law and/or auditing standards, prepare a report which addresses theCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 12 of 39following:• An outline of all the elements of the tort of negligence;• The case that Spruce Ltd could prepare in their efforts to sue JDM for negligence.• An assessment as to whether Spruce will be successful in their legal action• An explanation as to whether this assessment of success (as above) would change ifSpruce had written to JDM telling them that they intended to buy Cardinal and wererelying on the audited financial statements to assist them in making their decision.Question 3 (3 marks)Advise Tyrone of any breaches of the ASX’s ‘Corporate Governance Principles andRecommendations’ and what action (if any) will need to be taken by JDM.RATIONALESUBJECT LEARNING OUTCOMESThis assessment task will work towards assessing the following learning outcome/s:• be able to explain and critically evaluate influences on audit and assurance servicesincluding: Australian and international professional standards, statutory and commonlaws, regulatory bodies, and public expectations within a global market.• be able to exercise critical and reflective judgement and appreciate the value ofethical practice.GRADUATE LEARNING OUTCOMESThis task also contributes to the assessment of the following CSU Graduate LearningOutcome/s (https://student.csu.edu.au/study/glo):• Academic Literacy and Numeracy (Application) – CSU Graduates consider the context,purpose, and audience when gathering, interpreting, constructing, and presentinginformation.• Ethics (Application) – CSU Graduates form judgements and apply ethical decisionmaking and reasoning to identify creative solutions to ethical problems.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 13 of 39MARKING CRITERIA AND STANDARDS CriteriaHigh DistinctionDistinctionCreditPassQuestion 1Use of critical andreflective judgment inethical practice in theapplication of theethical decision guide(6 marks).Complex, comprehensive,and detailed application ofthe ethical decision guidedemonstrates insightfulcritical and reflectivethinking.Logical, comprehensive,and accurate applicationof the ethical decisionguide demonstratescoherent critical andreflective thinking.Accurate application of theethical decision guidedemonstrates critical orreflective thinking.Accurate application of theethical decision guide.Question 2Identification andapplication of theinfluences of commonlaw and auditingstandards onnegligence issuesduring the auditprocess(6 marks).Comprehensive synthesisand application of thecommon law and auditingstandards most integral todeciding failure to exercisedue care and duty of care toa third party.Comprehensive synthesisand application of thecommon law and auditingstandards most integral todeciding failure to exercisedue care, and duty of careto a third party.Synthesis and applicationof the common law andauditing standardsimportant to decidingfailure to exercise duecare, and duty of care to athird party.Application of common lawor auditing standardsimportant to decidingfailure to exercise due careand duty of care to a thirdparty.Question 3 Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 14 of 39 Explanation andcriticalevaluation of theinfluence of Australianand internationalprofessionalstandards,public expectationsand regulatory bodieson audit andassurance services(3 marks).Comprehensive, focused,and concise synthesis andcritical evaluation of therelevant ASX CorporateGovernance Principles andRecommendations.Comprehensive andaccurate synthesis andcritical evaluation of therelevant ASX CorporateGovernance Principles andRecommendations.Critical evaluation of therelevant ASX CorporateGovernance Principles andRecommendations.Lists relevant ASXCorporate GovernancePrinciples andRecommendationsThese last two criteria relate to the whole of the case study. N.B. although these criteria are not given a separate mark, they will betaken into account when marking each of the previous three criteria.Professionalcommunication usinga business reportformat:* Arial 10pt or TNR 12pt font;* 1.5 or double linespacing;* space betweenparagraphs;* appropriateheadings;* professionallanguage.Focused, intelligible,accurate, and concisestatements are organisedinto a professionallystructured and formattedreport which engages thereader and justifies andclarifies an insightful criticalperspective.Focused, accurate, andintelligible statements areorganised into aprofessionally-structuredand formatted reportwhich clarifies a criticalperspective and facilitatesthe reader’sunderstanding.Accurate statements areorganised into a structuredand effectively-formattedreport which conveys acoherent perspective andfacilitates the reader’sunderstanding despiteminor spelling, grammar,paragraphing, orpunctuation errors.Statements are organisedinto a structured reportwhich communicates arelevant perspective to thereader despite somefrequent and/or intrusivespelling, grammar,punctuation, paragraphing,or formatting errors. Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 15 of 39 Appropriate resourcesand correct APA (6thor 7th ed.) referencingSeamlessly and articulatelyintegrated evidence fromfour or more credible,relevant sources. All workhas been referencedcorrectly as per APA (6th or7th ed.) requirements.Integrated evidence fromtwo or more credible,relevant sources. All workhas been referencedcorrectly as per APA (6th or7th ed.) requirements.Supported argument withevidence from one or morecredible, relevant sources.All work has beenreferenced within the bodyof the answer and in thereference list. Occasionalformatting errors and/oromissions of informationdo not comply with APA(6th or 7th ed.) but do notaffect transparency ortraceability of sourcematerial.Supported argument withevidence from the text.Others’ work is alwaysacknowledged. Frequentformatting errors and/oromissions of informationdo not comply with APA(6th or 7th ed.) but do notaffect transparency ortraceability of sourcematerial. Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 16 of 39PRESENTATIONAssessment tasks should be submitted via Turnitin as a Microsof Word document. Do notsubmit as a PDF document.• The first page should contain your name, student number, subject code, word countand due date. Please use 12 point font and avoid the use of fancy templates withadded colour or graphics.• Lines should be double spaced.• The assessment tasks should be within +/- 10% of the word limit. The word count istaken from the first word to the last word and includes quotes. Quotes must compriseless than 10% of the total word count.• Proof-read your work so that it is free of spelling, grammar, and punctuation mistakes.Use language that is appropriate for academic and professional tasks. Ensure you userespectful and appropriate terminology. For assistance, see Learning Skills:http://www.csu.edu.au/division/studserv/learning• Your reference list should contain all source documents that you refer to, quote orparaphrase from. It must conform to the APA referencing style:http://student.csu.edu.au/__data/assets/pdf_file/0011/294977/APAReferencingSummary2013.pdfAssessment item 2 – Case B (risk, planning, controls and testing)Value: 25%Due Date: 19-May-2021Return Date: 10-Jun-2021Length: 2,500 wordsGroup Assessment: NoSubmission method options: Alternative submission methodTASKBackgroundYou are the audit manager of RFC, an accounting firm with offices located throughout regionalNSW and Victoria, including towns such as Bendigo, Albury, Wagga, Bathurst and Tamworth.RFC is a middle tier firm which provides audit and accounting services across a range ofindustries. During July 2021 you met with the audit senior of RFC, Wayne Campbell to discussseveral findings related to some of RFC’s clients.Knights LtdWayne tells you he is planning the 30 June 2021 Audit of Knights Ltd, a company that producesand exports timber products to South East Asian countries. Knights contracts timber cutters todeliver set tonnages of logs to its mill throughout the year. The timber is then transported toAsia on charter vessels, which make an average of one trip a month. Timber is purchased in 50hectare lots from plantations and state forests. In the past, 75% of timber was sourced fromplantations, however this has fallen to 40% in the current year. The corresponding increase inCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 17 of 39timber sourced from state forests has angered environmental groups. Protests have been heldin several forests, which has slowed production and frustrated the contractors, who are onlypaid once set tonnages of timber are delivered to the mill. These issues have meant thatseveral shipments of timber have been delayed, angering the Japanese customers who arethreatening to deduct 20% from amounts owing as compensation for lost production time. Arecent downturn in the Japanese economy is also affecting forward orders, which have fallenby 15%. Wayne also says that one of Knights customers, Chip Corporation, is claiming that thelatest batch of timber products it received was contaminated with a microbe. This microbeaffects the physical structure of the timber, reducing its strength and durability. This has madethe timber useless for heavy duty items such as china hutches and bookcases. Chip Ltd isrefusing to pay its account, which is already five months overdue. Knights Ltd has launched aninvestigation into the allegations but has not been able to substantiate them as yet.Bowden LtdNext up, Wayne tells you about Bowden Ltd, a small manufacturer of confectionary goods.Wayne has indicated that he has completed testing on accounts payable, sales and relatedexpenses and has performed the following tests:• Wayne selected 30 invoices to test the control that the sales assistant verifies thatsales prices agree with the approved price list. He found 3 instances where the salesassistant had not placed her signature in the correct box on the invoice verifying thatthis check took place. The sales manager told Wayne that the sales assistant verifiesthe prices match, but sometimes forgets to sign the box. As the prices on all theinvoices agreed with the authorised price list, Wayne concluded that the control wasoperating satisfactorily.• As part of his work on subsequent events, Wayne noted that there were many returnsin July of a product called SugarHit! As this product only went to market in May 2021and represented only 2.5% of sales for the year, Wayne concluded that the amountwas immaterial and no further work was necessary.• Advertising expenses for 2021 are material, although only 47% of 2020’s advertisingexpenses. Wayne selected a substantial sample of entries and vouched them tosupporting documents. Wayne found no errors and concluded that advertisingexpenses were fairly stated.• As part of the audit of payables, Wayne carried out a search for unrecorded liabilities.He tested a sample of 20 payments made afer 30 June, 2021 and found 3 instances ofelectronic funds transfers (ef’s) that related to services provided in June, which hadnot been accrued. However, as the total of the 3 ef’s was immaterial, he concludedthat no adjustment was required for unrecorded liabilities.Francis LtdWayne is also planning the 30 June audit of Francis Ltd, a company that runs a chain of homewares retail stores in regional New South Wales and Victoria. Using the company’s financials aswell as his understanding of Francis under ASA315, he has compiled the following preliminaryinformation:Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 18 of 39 Ratio2021202020192018Current Ratio2.441.972.182.11Quick Ratio0.841.171.581.53Times interestearned2.182.783.574.61ReceivablesTurnover3.654.793.574.70Days inreceivables75.6057.9777.4558.80Inventoryturnover1.571.602.332.91Days ininventory176.41172.58121.1095.07Net Sales/Tangible Assets0.520.560.640.60Profit Margin0.090.110.140.13Return onAssets0.070.080.100.09Return onEquity0.030.050.090.09 Francis import all their products, primarily from China, Europe and North America. Someitems are sourced from Africa and South America. The company operates in a low gross marginenvironment, which typically means that large sale volumes are required to cover overheadcosts and generate profits. It also means that overheads need to be kept under control toensure that a net profit results from its operations. Francis did not reach industry benchmarksfor profitability in 2020, so to do better in 2021, management planned to keep costs down inrelation to sales while allowing its gross margin to drop, evidently planning to generate alarger volume of sales. The company also planned to improve its working capital managementby reducing levels of inventory and accounts receivable. It budgeted for a drop in debt levels,indicating that it expected to produce a healthy cash flow to enable it to do so.Edwards LtdThe next client Wayne tells you about is Edwards Ltd, where Wayne is evaluating the internalcontrols in the sales and receivables areas. Edwards manufactures small scale water purifierswhich are then sold to retailers, with a year ending 30 June 2021. Wayne has identified thefollowing internal control procedures.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 19 of 39• All sales are made on credit, with outstanding accounts due and payable within 30days. Customers can purchase the water purifiers from Edwards by emailing ortelephoning through their purchase order. Immediately on receipt of a customer’srequest, a sales clerk prepares a sales order.• Sales orders are manually pre-numbered and produced in triplicate. One copy of thesales order is sent to the shipping department, one to the invoicing department andone copy is filed in the sales department.• On receipt of the sales order by the shipping department, the shipping clerk obtainsthe items from the warehouse, packages them, prepares a shipping note and arrangestransport.• Shipping notes are also manually pre-numbered and produced in duplicate. Theoriginal shipping note is sent to the invoicing department, and the second copy is filedby the shipping clerk.• The shipping clerk transfers the information from the shipping note to a deliverydocket, which is pre-numbered and produced in triplicate. Two copies of the deliverydocket are given to the carrier. One of these is retained by the customer, while theother is signed by the customer and retained by the carrier. The shipping clerkforwards the third copy of the delivery docket to the invoicing department.• A clerk in the invoicing department checks that the information on the purchase order,the shipping note and the delivery docket match each other and then prepares thesales invoice. Sales invoices are pre-numbered and produced in triplicate. One copy ofthe sales invoice is sent to the customer, one is forwarded to the accountingdepartment, and the third is filed by the invoicing clerk.• The accounts clerk uses the invoice to make an entry to the sales journal, which isused to update the sales ledger and the accounts receivable subsidiary ledgers. Thesales invoice is then filed by customer name.• All payments are made by cheque and mailed to Edwards along with the remittanceadvice. Two staff are assigned to receive these payments – one who opens the mailand records the receipt of the payment on a cheque list. The other staff member takescustody of the cheques and matches them to the remittance advice, then forwardsthem to the accounts receivable clerk.• The accounts receivable clerk updates the subsidiary ledger.• Bank reconciliations are performed monthly by an accounting clerk, who is notresponsible for receiving payments.• Sales returns and allowances are only processed afer the financial controller hasauthorised them.• Bad debts are written-off only on the authorisation of the financial controller, aferdiscussion with the credit manager.Murphy LtdFinally, Wayne tells you about Murphy Ltd, a large client with a diverse set of operations.During Wayne’s audit of Murphy he found the following:• Murphy manufactures wheat, yeast and various other goods needed to bake breadwhich it exports to bakers in Saudi Arabia. Recently the Saudi Arabian currency (Saudiriyal) has fallen in value and a number of Murphy’s customers are unable to settle theiraccounts. By the end of the year, Murphy is expecting to have outstanding receivablesin excess of $1 million.• Murphy also manufactures sof drink. Part of Murphy’s agreement with its distributorsis that Murphy will supply fridges and advertising signs for the distributors to use.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 20 of 39These fridges are rented to the distributors and recorded as fixed assets on Murphy’sbalance sheet. Most distributors are small retailers, such as petrol stations andconvenience stores.• Murphy has recently been finding it difficult to recruit and then retain skilled people towork in its factories. Consequently, senior management at Murphy have decided toimplement a new bonus scheme. The method for allocating bonuses will be based onfactors including length of tenure, pay rate, rank within the organisation and anestimate by senior management of the employee’s contribution to the profitability ofMurphy.RequiredWrite a memo to Wayne Campbell, the audit senior at RFC that advises him on:Question 1 (3 marks)The business risk impact and the accounts (as well as the related assertions) most likelyaffected by the events outlined in relation to Knights Ltd.Question 2 (4 marks)Whether Wayne’s testing has obtained sufficient appropriate evidence for the relevantassertions (where appropriate) pertaining to Bowden Ltd.Question 3 (7 marks)Regarding Francis Ltd, based on the ratios and other information provided:• The conclusions that can be drawn about the potential of Bowden to continue as agoing concern.• Three (3) account balances that could be at risk of material misstatement and wouldrequire special attention during the audit. You should provide Wayne with ajustification as to why these three (3) accounts are at risk and a statement as towhether they are likely to be overstated or understated.• For each of the three (3) account balances identified above, two (2) key assertions thatare at risk and an explanation as to why they are at risk.Question 4 (7 marks)Regarding Edwards Ltd:• Three (3) internal control activities in Edwards sales and receivables, and whetherthese activities are intended to prevent or detected material misstatements and howthis is achieved.• For each control identified above, one (1) test of control that could be undertaken toverify the effectiveness of the internal control.• Three (3) weaknesses in Edward’s internal controls around sales and receivables,along with an explanation as to why they are weaknesses.• For each weakness outlined above, one (1) account balance at risk of materialmisstatement and the related assertion most at risk, along with a justification as towhy this account and assertion is at risk.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 21 of 39Question 5 (4 marks)Regarding Murphy Ltd:• Three (3) account areas that are at risk of material misstatement.• For each account area identified above, one (1) key assertion that could be at risk.• The audit procedures you would perform to gather sufficient appropriate evidence foreach assertionRATIONALESUBJECT LEARNING OUTCOMESThis assessment task will assess the following learning outcome/s:• be able to demonstrate risk management methodologies and the role of internalcontrols in an audit context.• be able to design an audit plan and select and apply appropriate audit procedures fora financial statement audit.• be able to exercise critical and reflective judgement and appreciate the value ofethical practice.GRADUATE LEARNING OUTCOMESThis task also contributes to the assessment of the following CSU Graduate LearningOutcome/s (https://student.csu.edu.au/study/glo):• Academic Literacy and Numeracy (Application) – CSU Graduates consider the context,purpose, and audience when gathering, interpreting, constructing, and presentinginformation.• Professional Practice (Knowledge) – CSU Graduates possess the knowledge andunderstanding of the discipline and the nature of professionalism required for thegiven profession or discipline in contemporary societies.• Professional Practice (Skill) – CSU Graduates demonstrate discipline-specific technicalcapabilities and self-appraisal required for a beginning practitioner or professional.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 22 of 39MARKING CRITERIA AND STANDARDS CriteriaHigh DistinctionDistinctionCreditPassQuestion 1Analysis of the client’sbusiness risk and affectedaccounts.(3 marks).Comprehensive andcoherent explanation ofbusiness risks,demonstrating aninsightful understandingof its relationship toaccounts and assertions.Comprehensiveexplanation of the impactof business risk sand itsrelationship to accountsand assertions.Coherent explanation ofthe impact of businessrisks and its relationshipsto accounts andassertions.Limited explanation ofthe impact of businessrisks, and minimalconnection to accountsand assertions.Question 2Appraisal of theeffectiveness of auditprocedures. (4 marks).Demonstrates aninsightful understandingof the effectiveness ofaudit procedures.Demonstrates a thoroughunderstanding of theeffectiveness of auditprocedures.Demonstrates anunderstanding of theeffectiveness auditprocedures.Demonstrates a limitedunderstanding of theeffectiveness of auditprocedures.Question 3Analysis of ratios and otherinformation demonstratingskills with regard toassessing going concernand the identification ofaccounts and assertions atpotential risk. (7 marks).Comprehensive andarticulate interpretationof all ratios and otherprovided information,synthesising anunderstanding of theratios with insightfulanalysis of the risksAccurate interpretation ofall ratios and otherprovided information,demonstrating a thoroughunderstanding of how theratios can be used toanalyse the risks related togoing concern. ThoroughMost interpretations ofratios and other providedinformation accurate,demonstrating anunderstanding of how theratios can be used toanalyse the risks related togoing concern. ClearMost interpretations ofratios and otherprovided informationaccurate but a limiteddemonstratedunderstanding of theirusefulness in identifyingthe risks related to going Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 23 of 39 CriteriaHigh DistinctionDistinctionCreditPassrelated to going concern.Comprehensiveidentification ofaccounts and assertionsat potential risk.identification of accountsand assertions at potentialrisk.identification of accountsand assertions at potentialrisk.concern. Basicidentification ofaccounts and assertionsat potential risk.Question 4Identification and appraisalof the client’s internalcontrols. Development ofrelevant tests of control andidentification of associatedaccounts and assertions atrisk (7 marks).Comprehensiveidentification of internalcontrols and coherentexplanation for thechoice of internal controlweaknesses,demonstrating aninsightful understandingof those that mostsignificantly impactaudit risk. Developmentof a comprehensiveseries of tests of controland identification ofaccounts and assertionsat risk.Accurate identification ofinternal controls andchoice of internal controlweaknesses that mostsignificantly impact auditrisk. Development of aseries of tests of controland identification ofaccounts and assertions atrisk.Mostly coherentidentification of internalcontrols and internalcontrol weaknesses thatmost significantly impactaudit risk. Cleardevelopment of tests ofcontrol and identificationof accounts and assertionsat risk.Limited identification ofinternal controls andexplanation for thechoice of internal controlweaknesses that mostsignificantly impactaudit risk. Developmentof basic tests of controland identification ofaccounts and assertionsat risk.Question 5Identification andjustification of relevantComprehensiveidentification andjustification of relevantThorough identificationand justification ofrelevant accounts andClear identification andjustification of relevantaccounts and assertions,Basic identification andjustification of accountsand assertions but with Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 24 of 39 CriteriaHigh DistinctionDistinctionCreditPassaccount areas, assertionsand development of asubstantive auditprocedure.(4 marks).accounts and assertions.Development of acomprehensivesubstantive procedure.assertions. Developmentof a high-qualitysubstantive procedure.but with some lackingrelevance. Developmentof a suitable substantiveprocedure.several lackingrelevance. Developmentof a basic substantiveprocedure.These last two criteria relate to the whole of the case study. NB. although these criteria are not given a separate mark, they will betaken into account when marking each of the previous three criteria.Professionalcommunication* Arial 10pt or TNR 12 pt.font;* 1.5 or double line spacing;* accurate spelling,grammar, punctuation, andword choice.Focused, intelligible,accurate, and concisestatements arestructured and organisedin a manner thatfacilitates the reader’sunderstanding.Focused and intelligiblestatements with minimalerrors arestructured and organisedin a manner that facilitatesthe reader’sunderstanding.Intelligible statements areorganised into paragraphsthat convey a single ideaor argument and acoherent perspectivedespite minor spelling,grammar and punctuationerrors.Intelligible statementsare structured into aresponse that maycontain spelling,grammar andpunctuation errorsAppropriate resources andcorrect referencingSeamlessly andarticulately integratedevidence from at leastthree credible, relevantsources. All work hasbeen referencedcorrectly as per APA (6thor 7th ed.) requirements.Integrated evidence fromtwo or more credible,relevant sources. All workhas been referencedcorrectly as per APA (6thor 7th ed.) requirements.Supported argumentswith evidence from one ormore credible, relevantsources.All work has beenreferenced within thebody of the answer and inthe reference list.Supported argumentwith evidence from thetext. Others’ work isalways acknowledged.Frequent formattingerrors and/or omissionsof information do notcomply with APA (6th or Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 25 of 39 CriteriaHigh DistinctionDistinctionCreditPassOccasional formattingerrors and/or omissions ofinformation do notcomply with APA (6th or7th ed.) but do not affecttransparency ortraceability of sourcematerial.7th ed.) but do not affecttransparency ortraceability of sourcematerial. Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 26 of 39PRESENTATIONAssessment tasks should be submitted via Turnitin as a Microsof Word document. Do notsubmit as a PDF document.• The first page should contain your name, student number, subject code, word countand due date. Please use 12 point font and avoid the use of fancy templates withadded colour or graphics.• Lines should be double spaced.• The assessment tasks should be within +/- 10% of the word limit. The word count istaken from the first word to the last word and includes quotes. Quotes must compriseless than 10% of the total word count.• Proof-read your work so that it is free of spelling, grammar and punctuation mistakes.Use language that is appropriate to academic and professional tasks. Ensure you userespectful and appropriate terminology. For assistance, see Learning Skills:http://www.csu.edu.au/division/studserv/learning• Your reference list should contain all source documents that you refer to, quote orparaphrase from. It must conform to the APA referencing style:http://student.csu.edu.au/__data/assets/pdf_file/0011/294977/APAReferencingSummary2013.pdfREQUIREMENTSThis assignment must be submitted through Turnitin.All textual elements within an assessment must be submitted in a format that is readable byTurnitin. Specific exceptions, where an assessment requires the insertion of image basedevidence of workings will be outlined in the context of the assessment. Students thatdeliberately attempt to insert content of assessments in a format that is not readable byTurnitin may be subject to Academic misconduct investigations.It is recommended that your name, student ID and page number are included in the headeror footer of every page of the assignment.Further details about submission in Turnitin are provided in On-line submission.Assessment item 3 – Final ExamValue: 60%Due Date: To be advisedDuration (including Reading, Writing and Technology Allowance): 2 hours +10 mins reading+ 30 mins technologyExam Type: Online examSubmission method options: Interact2Invigilated: YesEXAM PENALTIESCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 27 of 39Exam PenaltiesThe penalty for late submission of an exam will only apply to exam options (such asEASTS) that do not include an auto-submit function. It will be a deduction of themaximum marks allocated for the exam equal, in percentage terms, to the extent of the latesubmission. The extent of the late submission will be determined with reference to theduration of the exam, including all allowances.Example 1.An exam with 120 minutes (2 hours) of writing time, 10 minutes of reading time and a 30minute technology allowance is an exam of 160 minutes duration. If a student submits afer200 minutes, the 40 minutes of excess time represents 25% of the total duration and theywould therefore be deducted 25% of the maximum marks available for the subject.Example 2.An exam with 2 days (48 hours) of writing time. If a student submits afer 60 hours, the 12hours of excess time represents 25% of the total duration and they would therefore bededucted 25% of the maximum marks available for the subject.An example of the calculation would be:Maximum marks allocated = 50Penalty for being 25% in excess of the total duration = 12.5 marks (so, a score of 40/50becomes 27.5/50 and a score of 25/50 becomes 12.5/50).Note that the penalties for late submission of an online exam are different to the standardpenalties for late submission of an assessment task covered in the AssessmentInformation section below.REQUIREMENTSThe final examination is open book . It will be sat within the official examination period.The examination consists of three short answer questions in Part A worth five marks each (fora total of 15 marks) and three problem questions in Part B worth 15 marks each (for a total of45 marks).Marks for requisite parts of questions in Part B will be clearly stated on the paper. A sampleexam paper (with solutions) has been provided in this subject outline.Your online exam will be delivered through an Interact2 test. You may have previouslycompleted an online quiz using this system. You will access your Interact2 test using youronline web browser, such as Chrome. Please ensure that you have turned off any pop-upblocking sofware, as this may block your online exam from opening in Interact2. Once youlogin to your Interact2 subject site, you will see an option on the lef-hand side of your screenthat will take you to your online exam page. Before your exam is scheduled to start, a link willappear on this page. You may have to refresh this page. Interact2 will automatically submityour exam for you when the time is up or you can submit your exam yourself if you finish early.Please ensure you write your own responses within the text field provided. You will not be ableto cut and paste text into the exam respond field.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 28 of 39RATIONALEThis assessment task will assess the following learning outcome/s:• be able to explain and critically evaluate influences on audit and assurance servicesincluding: Australian and international professional standards, statutory and commonlaws, regulatory bodies, and public expectations within a global market.• be able to evaluate the expanding scope of assurance services and providers in today’sinternational business environment.• be able to demonstrate risk management methodologies and the role of internalcontrols in an audit context.• be able to design an audit plan and select and apply appropriate audit procedures fora financial statement audit.• be able to exercise critical and reflective judgement and appreciate the value ofethical practice.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 29 of 39MARKING CRITERIA AND STANDARDSMarks will be awarded for correct answers and no marks deducted for incorrect answers. All questions must be answered. CriteriaHigh DistinctionDistinctionCreditPassShort answer questions (15marks)In response to each of the shortanswer questions, students willbe required to demonstrate, for arange of scenarios, their abilityto:• explain and criticallyevaluate influences onaudit and assuranceservices including:Australian andinternational professionalstandards, statutory andcommon laws, regulatorybodies, and publicexpectations within aglobal market;• evaluate the expandingscope of assuranceservices and providers intoday’s internationalbusiness environment;demonstrate riskmanagementTo meet this level youwill attain a cumulativemark between85%-100% for thissection of theexamination.A mark in this range (noless than 12.75 marks)indicates that you haveanswered the threequestions to a high orexceptional level and nomore than one questionis answered at a basiclevel.Overall, in meeting thislevel you willdemonstrate exceptionalknowledge,understanding, andability across themajority of topics in thissubject.To meet this level youwill attain a cumulativemark between75%-84% for thissection of theexamination.A mark in this range (noless than 11.25 marks)indicates that you haveanswered at least twoof the three questionsto a high level or aboveand no more than onequestion is answered toa basic or limited level.Overall, in meeting thislevel you willdemonstrate acomprehensiveknowledge,understanding, andability across themajority of topics inthis subject.To meet this level youwill attain a cumulativemark between 65% and74% for this section ofthe examination.A mark in this range (noless than 9.75 marks)indicates that you haveanswered at least one ofthe three questions to ahigh level or above andno more than twoquestions are answeredto a basic or limitedlevel.Overall, in meeting thislevel you willdemonstrate a soundknowledge,understanding, andability across themajority of topics in thissubject.To meet this level youwill attain a cumulativemark between 50%and 64% for thissection of theexamination.A mark in this range (noless than 7.5 marks)indicates that you haveanswered at least twoof the three questionsto a basic level orabove and no morethan two questions areanswered to a limitedlevel.Overall, in meeting thislevel you willdemonstrate a basicknowledge,understanding, andability across themajority of topics inthis subject Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 30 of 39 CriteriaHigh DistinctionDistinctionCreditPassmethodologies and therole of internal controls inan audit context;• design an audit plan andselect and applyappropriate auditprocedures for a financialstatement audit; andexercise critical andreflective judgement andappreciate the value ofethical practice.Part BProblem questions(45 marks)In response to each of theproblem questions, students willbe required to demonstrate, for arange of scenarios, their:– understanding of: explain andcritically evaluate influences onaudit and assurance servicesincluding: Australian andinternational professionalstandards, statutory and commonlaws, regulatory bodies, andpublic expectations within aglobal market;evaluate the expanding scope ofTo meet this level youwill attain a cumulativemark between85%-100% for thissection of theexamination.A mark in this range (noless than 38 marks)indicates that you haveanswered two of thethree questions to a highor exceptional level andno more than onequestion is answered at abasic level.Overall, in meeting thislevel you willTo meet this level youwill attain a cumulativemark between75%-84% for thissection of theexamination.A mark in this range (noless than 33 marks)indicates that you haveanswered at least twoof the three questionsto a high level or aboveand no more than onequestion is answered toa basic or limited level.Overall, in meeting thislevel you willTo meet this level youwill attain a cumulativemark between 65%-74%for this section of theexamination.A mark in this range (noless than 29 marks)indicates that you haveanswered at least one ofthe three questions to ahigh level or above andno more than twoquestions are answeredto a basic or limitedlevel.Overall, in meeting thislevel you willTo meet this level youwill attain a cumulativemark between50%-64% for thissection of theexamination.A mark in this range (noless than 22.5 marks)indicates that you haveanswered one or two ofthe three questions toa basic level or aboveand no more than twoquestions areanswered to a limitedlevel.Overall, in meeting this Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 31 of 39 CriteriaHigh DistinctionDistinctionCreditPassassurance services and providersin today’s international businessenvironment;demonstrate risk managementmethodologies and the role ofinternal controls in an auditcontext;design an audit plan and selectand apply appropriate auditprocedures for a financialstatement audit; and exercisecritical and reflective judgementand appreciate the value ofethical practice.demonstrate exceptionalknowledge,understanding, andability across themajority of topics in thissubject.demonstrate acomprehensiveknowledge,understanding, andability across themajority of topics inthis subject.demonstrate a soundknowledge,understanding, andability across themajority of topics in thissubject.level you willdemonstrate a basicknowledge,understanding, andability across themajority of topics inthis subject. Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 32 of 39MATERIAL PROVIDED BY THE UNIVERSITYOnline Exam.MATERIAL PROVIDED BY THE STUDENTICAA or CAANZ Auditing, Assurance and Ethics Handbook .A computer with Internet access and Camera for Invigilation.SAMPLE EXAM PAPERYou are encouraged to complete this subject’s sample exam (https://doms.csu.edu.au/csu/file/8ce03390-73a4-427a-9775-22a6f2b4753d/1/ACC568%20sample%20exam.docx) inpreparation for the end-of-session exam.Assessment and Exam InformationAcademic IntegrityPlay your part in maintaining academic integrity at our university. Complete your compulsoryAcademic Integrity at Charles Sturt University (https://www.csu.edu.au/current-students/learning-resources/build-your-skills/academic-integrity) subject. This subject will help youunderstand our Academic Integrity Policy, our expectations of you, and the support servicesavailable to help you meet your academic obligations.You’ll learn how to avoid plagiarism, cheating, contract cheating, and collusion. Charles SturtUniversity treats breaches of academic integrity seriously. We may use Turnitin to check yoursubmitted work for plagiarism or contract cheating.You can also use Turnitin to check for plagiarism (https://www.csu.edu.au/current-students/learning-resources/information-planning/assignments/plagiarism-checking) in yourassessments before submission.ReferencingReferencing is an important component of academic work. All assessment tasks should beappropriately referenced. The American Psychological Association (APA) referencing style isthe default referencing style to be used in students’ assessment work. If your subject requiresa different style to be used, this will be stated in the assessment requirements. Get referencingstyle guides and help with referencing from Charles Sturt’s Referencing webpage(https://www.csu.edu.au/current-students/learning-resources/build-your-skills/academicskills-help/referencing).How to submit your Assessment and Exam itemsCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 33 of 39POSTAL ASSESSMENT – SUBMISSION PROCESSPostal submissions will not be accepted for any of the assessments required.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 34 of 39HAND DELIVERED ASSESSMENT – SUBMISSION PROCESSUnder normal circumstances, hand-delivered submissions will not be accepted for any of theassessments required.ALTERNATIVE ASSESSMENT – SUBMISSION PROCESSAssignments must be submitted through Turnitin.Unless advised otherwise, all Turnitin submissions are due by midnight (AEST) of the datespecified. Please note that the time and the date of your Turnitin submission will be used todetermine your official submission time.You will be added to Turnitin once the class is set up, by end of week 2. If you need assistanceon Turnitin, there is an instruction sheet available at reception area.All textual elements within an assessment must be submitted in a format that is readable byTurnitin. Specific exceptions, where an assessment requires the insertion of image basedevidence of workings will be outlined in the context of the assessment.INTERACT2 – ONLINE EXAM SUBMISSION PROCESSYour online exam will be delivered through an Interact2 test.You may have previously completed an online quiz using this system. You will access yourInteract2 test using your online web browser, such as Chrome.Please ensure that you have turned off any pop-up blocking sofware, as this may block youronline exam from opening in Interact2.Once you login to your Interact2 subject site, you will see an option on the lef-hand side ofyour screen that will take you to your online exam page.Before your exam is scheduled to start, a link will appear on this page. You may have to refreshthis page.Interact2 will automatically submit your exam for you when the time is up or you can submityour exam yourself if you finish early.Please ensure you write your own responses within the text field provided. You will not be ableto cut and paste text into the exam respond field.ExtensionsIt is best to complete assessment items by the due date. However, when somethingunavoidable comes up an extension may be possible. The following principles are used whenprocessing extensions1. For in-session assessment items, an extension request for up to three (3) calendardays can be made by emailing your subject coordinator directly before the due date.In your email please state the reason why you need more time as well as whatCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 35 of 39precisely you are requesting. Supporting documentation is not required. If anextension is requested in the above format with a valid reason and your request doesnot disadvantage other students, the extension will be approved. Extensionscannot be granted for online tests, as these have to be done within a specific timeframe, afer which the answers are released to the class automatically.2. For in-session assessment items, extension requests of more than three (3) calendardays must be made via the special consideration form: https://apps.csu.edu.au/specialcons/. (https://apps.csu.edu.au/specialcons/)The request must be madebefore the due date and must include supporting documentation. Acceptable reasonsare given in the Special Consideration Policyview.current.php?id=00298>. Each request will be considered on a case by case basis.The request may not be granted. The maximum extension possible will be seven (7)calendar days.3. If you receive an extension, then you should expect the assessment item and itsfeedback to be returned later. If you submit later than the extended due date you willreceive late penalties as per guidelines below.4. Unless your extension permits otherwise, submissions received 10 days afer theoriginal due date will receive zero.5. For end of session exams, you can request a supplementary exam viahttps://apps.csu.edu.au/specialcons/. (https://apps.csu.edu.au/specialcons/)Thisrequest must be made within 3 working days of the date of exam and must includesupporting documentation. Acceptable reasons are given in the Special ConsiderationPolicy . For medical issues, aCSU medical certificate is required. If the supplementary exam (SX) is awarded thenyour exam is moved to the next examination period. In order to preserve examintegrity and manage the logistics of exams, the timing of a supplementary exam isheavily restricted.How to apply for special considerationAcademic regulations provide for special consideration to be given if you suffer misadventureor extenuating circumstances during the session (including the examination period) whichprevents you from meeting acceptable standards or deadlines. Find the form on the StudentPortal Special Consideration, Misadventure, Advice and Appeals (http://student.csu.edu.au/study/academic-advice) page.Penalties for late submissionThe penalty for late submission of an assessment task (without obtaining the SubjectCoordinator’s approval for an extension) will be:10% deduction per day, including weekends, of the maximum marks allocated for theassessment task, i.e. 1 day late 10% deduction, or 2 days late 20% deduction.An example of the calculation would be:Maximum marks allocated = 20Penalty for one day late = 2 marks (so, a score of 18/20 becomes 16/20 and a score of 12/20Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 36 of 39becomes 10/20).If an assignment is due on a Friday but is not submitted until the following Tuesday, then thepenalty will be four days (40% deduction or 8 marks in the example above).Submissions more than 10 days late will be acknowledged as received but will not be marked.ResubmissionUnder normal circumstances resubmission of assessment items will not be accepted for any ofthe assessments required in this subject.Feedback processesPersonalised feedback on your performance on assessments 2 and 3 will be provided viaEASTS. You may also speak to the lecturer for further clarification or feedback. In relation toassessment 1 feedback will be provided by your peers and will be available immediately aferit has been posted.Assessment returnIf your assignment was submitted on time, you should normally expect your markedassignment to be despatched/returned to you within 15 business days of the due date. If anassignment is submitted on time but not returned by the return date, you should makeenquiries in the first instance to the Subject Coordinator. If the subject coordinator is notavailable, please contact your teaching team using the contact details and consultationprocedures provided on your Interact2 subject site.Student Feedback & Learning AnalyticsEvaluation of subjectsCharles Sturt University values constructive feedback and relies on high response rates toSubject Experience Surveys (SES) to enhance teaching. Responses are fed back anonymouslyto Subject Coordinators and Heads of Schools to form the basis for subject enhancement andrecognition of excellence in teaching. Schools report on their evaluation data; highlightinggood practice and documenting how problems have been addressed. You can view a summaryof survey results via the Student Portal SES Results (https://student.csu.edu.au/study/subjectexperience-survey-results) page.We strongly encourage you to complete your online Subject Experience Surveys. You will beprovided with links to your surveys via email when they open three [3] weeks before the end ofsession.Changes and actions based on student feedbackIn response to feedback provided by students the assessment regime is now designed aroundtwo assignments and an exam. The weighting for Case Study A has been increased from 10 toCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 37 of 3915%. The lecture slides for the subject have also been revised and expanded.Learning analyticsLearning Analytics refers to the collection and analysis of student data for the purpose ofimproving learning and teaching. It enables the University to personalise the support weprovide our students. All Learning Analytics activities will take place in accordance with theCharles Sturt University Learning Analytics Code of Practice. For more information, please visitthe University’s Learning Analytics (http://www.csu.edu.au/division/student-learning/home/analytics-and-evaluations/learning-analytics) website.Data about your activity in the Interact2 site and other learning technologies for this subjectwill be recorded and can be reviewed by teaching staff to inform their communication,support and teaching practices.Services & SupportYour Student Portal (http://student.csu.edu.au/) tells you can how you can seek services andsupport. These include study, admin, residential, library, careers, financial, and personalsupport.Develop your study skillsDevelop your study skills (https://student.csu.edu.au/study/skills) with our free study services.We have services online, on campus and near you. These services can help you develop yourEnglish language, literacy, and numeracy.Library ServicesAccess scholarly eBooks, journal articles and multimedia through your Library(https://library.csu.edu.au/). Learn how to find the best information for your study. We’re hereto help with Library Resource Guides, videos, online workshops and online chat.Policies & RegulationsThis subject outline should be read in conjunction with all academic policies and procedures.Please refer to the collated list of policies and regulations relevant to studying your subject(s)(http://student.csu.edu.au/administration/policies-regulations-subjects) which includes linksto Charles Sturt University’s Policy Library (https://about.csu.edu.au/our-university/publications-policy/policy)- the sole authoritative source of official academic andadministrative rules, policies and procedures of the University.Subject Outline as a reference documentThis Subject Outline is an accurate and historical record of the curriculum and scope of yoursubject. Charles Sturt University’s Course and Subject Information Procedure expects that youretain a copy of the Subject Outline for future use, including for accreditation and otherCharles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 38 of 39professional purposes.Charles Sturt University Subject OutlineACC568 202130 SM IVersion 2 – Published 01 April 2021Page 39 of 39

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