Answer all questions
Estimated word limit 2,500 words
The assignment requires you to apply the knowledge and skills that you have
developed during your auditing studies to an authentic scenario involving the
publically listed company, Dick Smith Electronics Ltd. that has recently gone into
liquidation.
In this assignment you will need to research the company through news bulletins,
ASX data and other media releases. Be sure to cite any sources of information being
very careful not to plagiarise your sources. The assignment should be presented as
a report/essay. You should not answer the questions in bullet points but instead
write the paper in a way that includes answers to the questions being asked. Marks
will be given according to the marking guide below.
The report must be written in your own words.
Required
1. Provide a brief history of Dick Smith Electronics Ltd (no more than a page)
and an explanation of what caused the collapse of the company.(10 marks)
2. The directors are being accused of breaching Australian Accounting
Standards? Which standards are in question? Explain what was done (or
allegedly done) by the directors. (10 marks)
3. What signs should the auditor have looked for to indicate there might be a
going concern problem. (10 marks)
4. Provide a brief analysis of the 2014/15 Annual Report for any evidence that
the company might not be a going concern. (10 marks)
5. Why do you think the auditors gave an unmodified audit opinion for the
financial year ended 30 June 2015? (10 marks)
6. Based on your knowledge of auditors’ legal liability do you think the auditors
of Dick Smith Electronics Ltd, Deloittes, have a case to answer for providing
an unmodified audit opinion for the financial year ended 30 June 2015?
Provide clear explanations as to why you have come to your conclusion (10
marks)
Marks will be awarded for the following
• Quality of written communication
• Extent and quality of research and referencing
• Appropriate application of knowledge and skills to the problem
• Extent to which each question has been addressed
• Critical analysis