RECENT ASSIGNMENT

Semester 1-2014
ASSIGNMENT
This assignment comprises twenty per-cent of the marks for this course. There are three questions.
Assessment Criteria:
Student work will generally be assessed in terms of the following criteria:
1. Effectiveness of communication – i.e. readability, legibility, grammar, spelling,
neatness, completeness and presentation will be a minimum threshold requirement for
all written work submitted for assessment. Work that is illegible or incomprehensible
and does not meet the minimum requirement will be awarded a fail grade.
2. Demonstrated understanding - This will be evidenced by the student's ability to be
dialectical in the discussion of contentious issues.
3. Evidence of research - This will be evidenced by the references made to the statutes, auditing standards, books, journal articles and inclusion of a bibliography.
Note:
Students must fully reference the source(s) of all material, even if you have re-expressed the ideas, facts or descriptions; acknowledge all direct quotations.











The Faculty of Business
BUACC3741: Auditing
PART A (7 Marks)
International Standards on Auditing (ISA) have been approved by the International Auditing and Assurance Board (IAASB). Recently, the IAASB has issued a number of proposed ISAs for comment
The key enhancements to auditor reporting are:
Proposed ISA700 – Forming an Opinion and Reporting on Financial Statements
Proposed ISA701 – Communicating Key Audit Matters in the Independent Auditors Report
Proposed ISA260 – Communication with Those Charged with Governance
Proposed ISA570 –Going Concern
Proposed ISA705 – Modification to the Opinion in the Independent Auditor’s Report
Proposed ISA706 – Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditors Report
Briefly explain the nature and effect of these enhancements

PART B (7 Marks)
In January of 2007 the Public Company Accounting Oversight Board (PCAOB) felt it
necessary to issue a 14 page report commenting on over 20 shortcomings it had observed in the way auditors were addressing their responsibilities with respect to fraud.
Refer PCAOB Release 2007-001 January 22 – 2007: Observations on Auditors Implementation of PCAOB Standards Relating to Auditors’ Responsibilities with Respect to Fraud
pcaobus.org/Inspections/Documents/2007_01-22_Release_2007-001.pdf
Identify ten shortcomings


PART C (6 Marks)
The Companies Auditors and Liquidators Disciplinary Board (CALDB) responds to
applications mad by ASIC concerning auditors.
a) Briefly describe the powers of the Board
b) Go to the www.caldb.gov.au website and under the ‘Decisions’ tab you will find
CALDB decisions since January 2008. There are 15 verdicts. Briefly describe any five
decisions including the breach and penalty applied.(i.e. facts and outcome)