BKAA2013 AUDIT AND ASSURANCE 1

GROUP ASSIGNMENT (10%)

Learning outcomes:

At the end of this assignment students can:

a. Work as an audit team;
b. Plan an audit in accordance with relevant auditing standards;
c. Document audit working papers.

Instructions:

1. The 10% marks on this project will contribute to the total 40% marks carried to the final
exam.

2. As such, groups are expected to treat this project seriously and produce an excellent
project paper.

3. For a start, please make an effort to browse through any local newspaper, look for the
Business Section where Malaysian public-listed companies are listed under the Malaysian
Bourse according to the industries they are in. (Eg: Plantation, Construction, Trading,
Industrial Product, Consumer etc). Pick any one of them. Avoid duplication with any
other groups.

4. Submit the name of the company chosen to your class lecturer. This is to avoid
redundancy among groups.

5. Next, browse through the internet. Use the internet search to obtain or access information
regarding the chosen company. Print or save a copy of the latest annual report
provided by the company via its website. Any group that makes an attempt to
personally obtain or via postal/mail obtain, the original (hardcopy) annual report of the
company will have additional bonus marks awarded to them.

6. When submitting the project, groups need to also attach the respective printed/ actual
annual report.

7. Please make sure that the following requirements are met:

Project need to be written in English, with double spacing and 12 font- size; and
paginated.
Start answering each question on a new page.
Name and matric number; as well as class group (A, B, C etc) need to be listed on the
front page of the project.

Form a team of 3 or 5 members and answer the following questions relating to the company:
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 COMPANY BACKGROUND
1.1 Describe when the company was listed; which sector is it listed in, (5 Marks)
its financial year-end, principal activities, location, size of company
and main owners.

REPORTING FRAMEWORK
2.1 Identify the regulatory framework including financial reporting. (3 Marks)

2.2 Are there any special accounting standards specific to this industry? (3 Marks)

AUDIT PLANNING
3.1 Describe the characteristics of the industry relating to your client. (3 Marks)

3.2 What economic factors affect the industry? (5 Marks)

3.3 Are there any development reported in the media about your (5 Marks)
company, which could have an impact on your audit planning.

3.4 Perform analytical procedures and identify what accounts require (10 Marks)
more attention from you as auditors.

GOVERNANCE AND AUDIT

4.1 Was this company subject to any regulatory sanctions? (2 Marks)

4.2 Who was the auditor last year? This year and next year? (3 Marks)

4.3 How much were the audit fees at group level? As a % of net profit? (3 Marks)

4.4 Did the same auditor audit all companies in the group? (2 Marks)

4.5 What type of audit report was issued? Why? (3 Marks)

4.6 How many reports are there in the annual report and are all these (4 Marks)
reports audited? Why? Who requires all these reports?

4.7 Was the annual report timely? (2 Marks)

4.8 Is there an internal audit department? (2 Marks)

4.9 Who manages the company, and who owns the company? Are they (3 Marks)
the same people?

4.10 How many independent directors are there on the board of (2 Marks)
directors?

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4.11 How many times did the audit committee meet with auditors? (2 Marks)

4.12 Are there any non-audit fees? As a % of net profit? (3 Marks)

4.13 Did this company win any award for good reporting or being a good (3 Marks)
corporate citizen?

4.14 What additional information would you like them to provide in the (4 Marks)
annual report? Support your answer.

4.15 Provide two (2) suggestions on how the chosen entity may improve (4 Marks)
the quality of its annual report?

4.16 Backed with the share prices analysis (eg: share prices monitored, (10 Marks)
graphs of price fluctuations, financial ratios calculated), and
previous information gathered (Auditor Report; economic, social
and legislative factors; financial and performance analysis; entitys
governance etc), what would your expectations be for this company
in terms of performance and risks. Justify your answer.