question 2b needs to be done (500words)

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Melbourne Institute of Technology Pty Ltd CRICOS Provider No: 01545C, 03245K NSW

Assessment Details and Submission Guidelines Course Name: Bachelor of Business

Unit Code: BA313

Unit Title: Auditing

Assessment Type: Group Assignment Trimester 2, 2017

Weight: 20 percent

Total Marks: 20 marks

Word limit 2000 words

Release Date: Week 6

Due Date: Week 10

Submission Guidelines:  This assignment should be completed in groups of two or

three.

 All work must be submitted via Turnitin by the due date

along with a completed Assignment Cover Page.

 The assignment must be in Ms Word format, 1.5 spacing,

11-pt Calibri (Body) font and 2 cm margins on all four

sides of your page with appropriate section headings.

 Reference sources must be cited in the text of the report,

and listed appropriately at the end in a reference list using

APA referencing style.

Extension  If an extension of time to submit work is required, a Special

Consideration Application must be submitted directly to the

School's Administration Officer, in Melbourne on Level 6 or

in Sydney on Level 7. You must submit this application

three working days prior to the due date of the assignment.

Further information is available at:

http://www.mit.edu.au/about-mit/institute-

publications/policies-procedures-and-

guidelines/specialconsiderationdeferment

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Assignment Cover Sheet

Student ID Number/s: Student Surname/s: Given name/s:

Course: School:

Unit code: Unit title:

Due date: Date submitted: Campus:

Lecturer: Tutor:

All work must be submitted via Turnitin by the due date. If an extension of time to submit work is required, a Special Consideration Application must be submitted. Further information is available at: http://www.mit.edu.au/about-mit/institute-publications/policies-procedures-and-

guidelines/specialconsiderationdeferment

Academic Misconduct Academic Misconduct is a serious offence. Depending on the seriousness of the case, penalties can vary from a written warning or zero marks to exclusion from the course or rescinding the degree. Students should make themselves familiar with the full policy and procedure available at: http://www.mit.edu.au/about- mit/institute-publications/policies-procedures-and-guidelines/Plagiarism-Academic-Misconduct- Policy-Procedure. For further information please refer to the Academic Integrity Section in your Unit

Description.

Student Declaration

I/We declare that:

 the work contained in this assignment is my/our own work/group work, except where acknowledgement of sources is made;

 certify that this assessment has not been submitted previously for academic credit in this or any other course;  I/we have read the MIT’s Plagiarism and Academic Misconduct Policy Procedure, and I/we understand the

consequences of engaging in plagiarism;  a copy of the original assignment is retained by me/us and that I/we may be required to submit the original

assignment to the Lecturer and/or Unit Co-ordinator upon request;

I/we have not plagiarised the work of others or participated in unauthorised collaboration when preparing this assignment.

Student Signature: Date:

Group member 1:

Group member 2:

Group member 3:

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Assignment Requirements

Requirement 1 (20 marks, 1000 words)

Research on ‘Big 4’ and ‘non-Big 4’ audit firms

Audit firms are categorized in a number of ways; the two most common being the

international ‘Big 4’ audit firms and the ‘non-Big 4’ (or mid-tier) audit firms. The Big 4

audit firms are PriceWaterhouseCoopers (PwC), Ernst and Young (EY), KPMG, and

Deloitte.

Most audit firms maintain a website that explains the services offered by the firm and

provides resources to their clients and other interested parties. The services offered

by most firms include both audit and non-audit services.

Required

Find the websites for: (a) a ‘Big 4’ audit firm and (b) a ‘non-Big 4/mid-tier’ audit firm,

and;

(a) Present a report that compares your two audit firms on the following characteristics

(i.e., one paragraph for each): (14 marks)

i. range of services provided

ii. geographic coverage (i.e. where their offices are located)

iii. number of staff and special skills offered

iv. industries in which they claim specialisation

v. publications and other materials provided to their clients or the general

public

vi. marketing message.

vii. a topic of your choice No. 1

viii. a topic of your choice No. 2

ix. a topic of your choice No. 3

x. a topic of your choice No. 4

Note, to find four ‘topics of your choice’, you will need to look-up (at least) four articles

published in ‘professional’ and/or ‘academic’ accounting/auditing journals that have

examined differences between ‘Big 4’ and ‘non-Big 4’ audit firms. These articles

(reference sources) must be cited in your responses, and listed appropriately at the

end in a reference list using APA referencing style.

(b) In a separate paragraph, at the end of your Part (a) comparison, make a

recommendation on which audit firm your group would prefer to work for and why.

Your explanation must refer to the material presented in Part (a). If the

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recommendation of your group is ‘undecided’, then explain why, again, referring to the

material presented in Part (a). (6 marks)

Requirement 2 (16 marks, 1000 words)

Research on Arthur Andersen/Enron

In 2002, the audit firm Arthur Andersen (one of the then ‘Big 5’ audit firms!) collapsed

following charges brought against it in the United States relating to the failure of its

client, Enron. Some other clients announced that they would be dismissing Arthur

Andersen as their auditor even before it was clear that Arthur Andersen would not

survive.

Required

(a) Using the three theories outlined in Moroney et al. (2017, chapter 1)) (i.e., the

prescribed textbook) on the demand for audit ((i) Agency theory, (ii) Information

hypothesis, and (iii) Insurance hypothesis), explain some reasons why these clients

took this action. (3 x 2 marks = 6 marks)

(b) Present an argument of why a similar event is not likely to happen again. Your

discussion should be (i) in context of what went wrong with Arthur Anderson/Enron

and (ii) make specific references to how regulations and auditing standards have

changed since the collapse of Arthur Andersen. (10 marks)

Requirement 3 (4 marks)

Format and presentation quality.

The requirements should be presented in a report format.

A key aspect in your group’s choice of format/layout should be to ensure you impart

your key messages effectively (i.e., complete the requirements) and efficiently (i.e., it

should be succinct and take into account the word limit).

The report also should be coherent, and so consistency is expected throughout (e.g.,

formatting, language style, and linkages between the parts).

Note, groups who split up the requirements and work independently are likely to

have more difficulty accomplishing this objective compared to groups who work on

each of the parts collaboratively (i.e., as an ‘audit team’). An assignment that has

been put together last minute will be obvious to the marker and, therefore, will not

earn any marks for this requirement.

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Marking Rubric

Requirement

1a* (out of 14

marks)

Requirement

1b** (out of 6 marks)

Requirement 2a

(out of 6 marks)

Requirement 2b

(out of 10 marks)

Requirement 3

(out of 4 marks

Met requirement to an excellent level (80 to 100%)

Met requirement to a very good level (70 to 79%)

Met requirement to a good level (60 to 69%)

Met requirement to a satisfactory level (50 to 59%)

Did not met requirement (0 to 49%)

GRAND TOTAL (out of 40)

* For Requirements 1a and 2b

To obtain 70 percent or more for either of these two requirements, there must

be evidence of ‘material’ (i.e., quality and quantity) research. Therefore, and as

per the submission guidelines (on the cover sheet to this assessment task

document), it is important that all reference sources used are cited in the text

of your report and listed appropriately at the end of the report in a reference

list using APA referencing style.

** For Requirement 1b To obtain 70 percent or more for this requirement, there must be strong

evidence that your responses to this requirement are based on (i.e.,

connected) to Requirement 1a.