AUDITING AND ETHICAL PRACTICE

ACCT 20040 – AUDITING AND ETHICAL PRACTICE

WRITTEN ASSESSMENT TERM 1, 2014 – 30%

APPROXIMATELY 2500  WORDS

AEST  MUST SUBMIT THROUGH MODULE VIA TRINITIN SOFTWARE

The subtle nature of corporate collapse ensures collapses are given wide attention in news media. Whilst some funds may be recovered from various parties that include the auditors under the regulatory system we adopt in Australia, investors are going to bear a significant share of losses suffered in corporate collapses.

Choose any 2 corporate collapse companies in the year 2011-13 from ASX 200(Public Listed Companies) and answer the following questions.

1.   Locate the Annual Report of both the companies and their Unmodified Audit Report. Identify the major reasons of their collapse.

2.   Identify any breach committed by the Auditors under the Corporations Act 2001 and APES 110- Code of Ethics for Professional Accountants.

3.   Use analytical procedures to support your financial statement analysis and identify which were the major factors in collapse companies. For example- Liquidity issues or Long term debts.

4.   Investigate the current situation of the auditors of your corporate collapse companies and what is the current civil/criminal penalty status.

5.   Compare and contrast major auditor duties outlined under Corporations Act 2001 in Australia and Sarbanes Oxley Act 2002 in U.S.

6.   Record all your group discussion on assessment and attached evidence as part of your assessment submission.

7.   Use academic journals to support your answer.

ASSESSMENT MARKING CRITERIA