Posted: June 18th, 2020

ACC3001 Auditing Section I Report

Unit ACC3001 Auditing
Assessment Type Report
Assessment Number 2
Assessment
Weighting Group Assignment
30%

Assessment Description Section I Report (15%) Due Week 10 Friday 5pm (2000 words)
Various parties are taking an increased interest in the quality of an entity’s internal controls. In the US, the Sarbanes-Oxley Act requires public reporting on the quality of internal controls over financial reporting. But in Australia, companies are not yet required to report on it. In your assignment, you are required to write a report and discuss the following:
a. Briefly explain the difference between internal control and internal control over financial reporting. What are the major distinctions?
b. Who are the primary beneficiaries of public reporting on assurance on internal control and what are the primary benefits of such reporting? Do you think Australia should introduce a similar requirement? Justify your answer.
c. If Australia did require public reporting on internal control and provision of assurance on that report, how would a negative assurance report on internal controls over financial reporting likely affect share prices? Is the nature of the deficiency in internal control likely to make a difference in the potential effect on share market prices? Explain by identifying, the types of deficiencies that would most likely have a negative effect on share market prices?

Research expectation:
• The submission needs to be supported with information by credible sources.
• Credible sources should be varied and include, but not limited to, the Textbook, Government reports, Industry reports, Newspaper articles, Books, and Journal articles.
• Use the EBSCO Databases accessed through the Library and Learning Support page on mMoodle to find journal articles, case studies and more to help you prepare your assessment. Speak with the library assistants or email (support@aih.nsw.edu.au) if you require further assistance.

Section II Presentation (10%) Due in class of Week 11
Based upon the report, you are required to prepare PowerPoint slides and present the report in class of Week 11. All members in the group have to participate in the presentation. The ability to make coherent, well organized and clear presentations are an essential skill for business professionals. The following criteria are the basis for evaluating your final case presentation. Similar to the other performance measurement evaluation methods, the presentation criteria narrative begins with an outline of the criteria. The subsequent table outlines how this criteria leads to a grade:

Bases of assessment Marks
available Marks
awarded
Coherence
You have a clearly developed message that flows naturally from your presentation. The transitions are smooth. The presentation is succinct and not choppy.
2
Creativity
you can add originality to the presentation to capture and hold the audience’s attention. You can also go too far in your creativity. If your presentation uses annoying or distracting sounds, for example, it negatively impacts on creativity.

2
Speaking skills
The criteria include: poise, clear articulation, proper volume, steady rate, good posture, eye contact, enthusiasm, and confidence. The speakers do not read (e.g., note cards, read the overhead transparencies).
2
Balance between speakers
Each member of the team should participate equally in the presentation. This includes responding to questions.
2
Timeliness
You have 8 minutes to make your presentation.
2
Total 10

Section III ACL Audit Software (5%) Due Week 10 Friday 5pm

Requirement Approach
To Begin Download the Husky Inventory_2009 from Assignment Folder on Moodle and save it to the desktop of your virtual work station.

From the Analytics main menu, select File > New > Project.

In the Save New Project As dialog box, select a folder to save the project in, enter a file name, and click Save.
The new project is created and the Data Definition Wizard opens. You can proceed through the wizard to create a new Analytics table in the new project, or click Cancel if you do not want to create a table.

Open a new project by choosing File, New, Project or click the New Project icon. Name the project Husky Inventory.

Choose the Husky Inventory 2009 file to import (from Moodle Group Assignment Folder). Name the new table Inventory_your name.

a Objective: Foot the file and agree to the general ledger.

Using the Inventory file, choose Analyse, Statistical, Statistics, and choose to get statistics on EXTCOST.

b. Objective: Check finished goods for NRV less than cost.

1. To get back to the total inventory file, click on the Remove Filter icon with the red X next to the filter window.
2. Using the Inventory file, choose DATA, Extract Data, If and enter the expression FIND(“F”,SNUMB). Name the new file Finished Goods.
3. Right click on the table and choose Add Columns, Expr… and enter the expression SELPRICE * .9 (there is a sales commission of 10%). Save the results as NRV.
4. Choose DATA, Extract Data, If and enter the expression UNITCOST > NRV. Name the new file FG LOCOM.
5. To get a dollar impact of this, right click on the FG LOCOM table and choose Add Columns, Expr… and enter the expression (UNITCOST – NRV) * INVQTY. Name the new field WRITEDOWN.
6. Adjust the column widths to get all columns on one page and PRINT OR SAVE the report.

c. i. Objective: Check raw material for replacement cost less than cost.

1. Using the Inventory file, choose DATA, Extract Data, If and enter the expression FIND(“R”,SNUMB). Name the new file Raw Materials.
2. Choose DATA, Extract Data, If and enter the expression UNITCOST > Essay Assignment Help REPLCOST. Name the new file RM LOCOM.
3. To get a dollar impact of this, right click on the RM LOCOM table and choose Add Columns, Expr… and enter the expression (UNITCOST – REPLCOST) * INVQTY. Name the new field WRITEDOWN.
4. PRINT OR SAVE the report.

c. ii. Objective: Prepare a report of all raw materials with a turnover less than 2.

1. Using the Raw Materials file, right click on the table and choose Add Columns, Expr… and enter the expression NUMBSOLD / INVQTY. Name the new field Turnover.
2. Choose DATA, Extract Data, If and enter the expression INVQTY > 0. (This is necessary to eliminate dividing by sero in the next step.) Name the new file Positive RM.
3. Choose DATA, Extract Data, If and enter the expression TURN < 2. Name the new file RM Turnover LT 2. This will list raw materials that turned less than 2 times during 2002.
4. Print or Save the list for further investigation.