RECENT ASSIGNMENT

Question 1
Assume that your audit team is responsible for planning the audits for both Santos Limited (year ended 31 December 2015) and AGL Ltd (year ended 30 June 2016) discuss your strategies in relation to the questions noted below –
(A) Santos Ltd: Financial year ended 31 December 2015: Annual Report https://www.santos.com/media/3310/2015_annual_report.pdf
(B) AGL Ltd: Financial Year ended 30 June 2016: Annual Report
http://agl2016.annual-report.com.au/
1. (A). Identify at least inherent risks that you would have to consider for each company in the audit planning phase and justify your answer.
(B). Which audit procedures and/or tasks would you have planned to carry out in response to the inherent risks identified by you in (A) above? See the required format for your answers below Suggested Format for Question 1(A) and (B)
Inherent Risk Justify your answer Assertion and Ledger Account(s) impacted Audit Procedure/Task
Note –
Types of Assertions:
• Occurrence / Completeness /Accuracy / Cut-off / Classification
• Existence / Rights and obligations / completeness / valuation and allocation
Question 2 (300 words)
The website of Chartered Accountants Australia and New Zealand (CA ANZ) carries an article on Australian Assurance Essentials for June 2016 which can be found at the link given below: http://www.charteredaccountants.com.au/Industry-Topics/Audit-and-assurance/Publications-andtools/Essential-guides/Resources/Australian-Audit-Essentials-for-June-2016 (Please refer the attachment)
This article contains a couple of pages titled “ASIC and Quality Review Focus Areas” and your team is requested to consider the focus areas identified and consider whether and if so, how in the team’s opinion these are significant and relate to the improvement of the quality of an audit. In your own words (as a team) comment on the article and as a team conclude as to whether you agree with the focus areas selected by ASIC; justify your answer. Please note it must be your team’s opinion not a reproduction of any legislation, the article or a standard.