HA3032 Auditing 4 :“Developing An Audit Program For A Selected ASX Listed Company”


HA3032 Auditing 4 :“Developing An Audit Program For A Selected ASX Listed Company”

“Developing An Audit Program For A Selected ASX Listed Company”


  1. Select a listed company from the current ASX List or this will be allocated to your
  2. Gain an understanding of the nature of the entity and its industry and then identify key business risks. After this is completed, assess where the risks of material mis-statements could be in the financial report. Consider the factors affecting both Inherent Risk and Control Risk. Finally, apply the Audit Risk Model [AR = f (IR x CR X DR)] to the selected company. Which risk rating would you apply (Low, Medium or High) to the company’s inherent risk assessment and control risk assessment? How does this affect your assessment of Detection Risk and AuditRisk?
  3. Perform analytical procedures of the Statement of Financial Position and of Financial Performance over the last three years using appropriate ratios and metrics. Select four key ratios and provide a brief explanation in the report. This can be presented in a table
  4. Discuss with your group members which account balances are considered “material”. Explain how you calculated materiality for planning purposes and provide appropriate justification for your decision-making.
  5. Select up to ten different material account balances, at least five assets and five
  6. For each material account balance selected, list the relevant financial report assertions and explain why the selected assertions are applicable to each
  7. Design a comprehensive set of audit work steps for each material account balance, which addresses the selected assertions and which will result in sufficient and appropriate audit evidence being collected for your selected client company. (Assume that a predominantly substantive approach is beingadopted)
  8. Include a sampling plan, which details how you will use sampling for each material account balance to be tested. How many items will be tested for eachtest?

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