Profesional Auditing

Number of Pages: 9 (Double Spaced) Written by 10 writers: N/A Number of sources: 8 Writing Style: Harvard Type of document: Essay Academic Level:Undergraduate Category: Accounting VIP Support: N/A Language Style: English (U.S.) Order Instructions: Background There are two parts to the assignment. The first part requires students to set up an entity’s books in MYOB and process transactions to relevant accounts. The second part requires students to prepare a document for the Audit Manager. Part A You have recently graduated from VU and are now working for a small accounting firm. The firm recently purchases MYOB software for internal use. Upon learning that you had recently completed an accounting degree, the firm’s partner asks you to set up and process a number of transactions into relevant accounts. Required 1. Set up the firm on MYOB. 2. The financial year must be 1 April 2015 to 31 March 2016 3. Process the transactions listed in Part A_MYOB_S12016 into relevant accounts. 4. Print out and submit reports for the year ended 31 March 2016. Part A No. Task required Details 1 Set up a company Set system date 1/04/2015 Company details: s12016syd (example: Tom sets up a company called Tom Ltd) ABN 32 889 888 887 Address 300 Ballarat Road, Footscray, VIC 3010 Phone (03) 4444 2222 Fax (03) 4444 3333 Email [email protected] (example: [email protected]) Financial year 01/04/2015 to 31/03/2016 Conversion month April No. of accounting periods 13 Industry classification retail Type of business motor vehicle dealership 2 Set up accounts module Edit an account 1-1110 - cheque account, change to cash at bank 3-1100 - Owner's/Sharehldr Capital, change to Shareholder Equity 3-1200 - Owner's/Sharehldr Drawings, change to Drawings 2-1200 Trade Creditors, change to Accounts Payable 1-1200 Trade Debtors, change to Accounts Receivable 3 Delete an account 2-1120 Diners Club, delete this account Entering opening balances 1-1110: $320000; 1-1200: $55000; 2-1310: $5000; 3-1100: $370000. 4 Set up sales module Sales Layout for Invoices Item Credit limit $80,000 Tax code GST Payment method Cheque Payment due In a Given # of Days Balance Due Days 30 5 Set up customer cards MMM, ABN: 32 333 666 567, 5 king street, footscray, VIC 3010, phone: 03 1234 5678, email: [email protected]. Payment method: cheque. Income account: 4-1100. NNN, ABN: 32 456 789 222, 10 queen street, rye, VIC 3011, phone: 03 2345 6789. Payment method: cheque. Income account: 4-1100 Enter a customer's opening balance MMM, invoice no.: 110, date: 26/04/15, Total including tax: $55000, Tax code: GST. 6 Set up purchases module Purchase layout for invoices Item Supplier credit limit $50,000 Tax code for suppliers GST Payment method Cheque Payment due In a Given # of Days Discount days 0 Balance due 30 % Discount early payment 0 Set up supplier cards OOO, 3 prince street, rein, VIC 3013, phone: 03 9876 5432, ABN: 32 566 778 999, email: [email protected] PPP, 4 knight street, rhim, VIC 3014, phone: 03 8765 4321, ABN: 32 777 444 321, email: [email protected] mike: 7 Set up inventory module Enter item profile data Item no. 4401, name: MONDA S1 part, status: buy, sell and inventory, COGS account: 5-4000, Income account: 4-4100, Inventory account: 1-1340, buying unit of measure: each, number of items per buying unit: 1, tax code: GST, minimum level of restocking alert: 5, primary supplier: OOO, supplier item number: 4401, default reorder quantity: 5, base selling price: $250, selling unit of measure: each, number of items per selling unit: 1, tax code: GST. Item no. 5502, name: MONDA S2 part, status: buy, sell and inventory, COGS account: 5-4000, Income account: 4-4100, Inventory account: 1-1340, buying unit of measure: each, number of items per buying unit: 1, tax code: GST, minimum level of restocking alert: 5, primary supplier: PPP, supplier item number: 5502, default reorder quantity: 5, base selling price: $350, selling unit of measure: each, number of items per selling unit: 1, tax code: GST. 8 Enter transactions Purchase of inventory Tax invoice: 300, supplier: OOO, description: 10 MONDA S1 parts at $150 each, invoice amount: $1500 (GST exclusive), tax code: GST, date: 3 May 2015. Purchase of inventory Tax invoice: 123, supplier: PPP, description: 10 MONDA S2 parts at $200 each, invoice amount: $200 (GST exclusive), tax code: GST, date: 4 June 2015. Sale of goods Tax invoice: 111, order: C101, customer: MMM, description: 1 MONDA S1 part at $250, revenue account: 4-4100, invoice amount: $250 (GST exclusive), tax code: GST, date: 10 July 2015. Sale of goods Tax invoice: 112, order: D202, customer: NNN, description: 1 MONDA S2 part at $350, revenue account: 4-4100, invoice amount: $350 (GST exclusive), tax code: GST, date: 30 August 2015. Payment from customer Receipt no.: 1, customer: MMM, ID#: CR001, payment method: cheque, amount: $55000, tax code: GST, date: 6 September 2015. Service revenue Tax invoice: 113, order: e103, customer: NNN, description: service contract to service NNN's vehicle fleet, revenue account: 4-2400, invoice amount: $5000 (GST exclusive), tax code: GST, date: 30 november 2015. Expense payment Cheque no. 150, supplier: security services, payee: security services, amount: $2750 (GST inclusive), expense account: 6- 5150, tax code: GST, date: 9 October 2015. 9 Print reports Trial balance - 13th Period 2016 Balance Sheet as of 31 March 2016 Profit and Loss Statement (Accrual) April 2015 - March 2016 Account Transactions (Accrual) 01/04/15 to 31/03/16 Part B OverviewAssignment is worth 20%of the overall assessment for this subject.Due date: Week 10Length:Part A: unlimited. Part B:3000 words(maximum)Similarity index: 30%(maximum)IntroductionAssignment requires you to address the issues set out in the assignment. The task is to be done individually. The assignment has two parts, A and B. Part A requires you to set up a company and process a number of transactions using MYOB. Part B requires you to prepare a documentto assist your Audit Manager in developing an audit planfor the financial audit of an entity. There is no word limit for Part A. Part Bmust not exceed 3000 words in length. A signed assessment declaration must be attached to the front of the assignment.Submission instructionPart A must be submitted in hardcopy only. Part B mustto be submitted in both electronic and in hardcopy.Electronic copy: Part Bmust be submitted via VU Collaborate. An originality report is available to students. Note: VU Collaboratemay take up to 24 hours to produce report. Assignment with originality report level of more than 30%will result in FOUR (4) marks being deducted. That is, assignment with originality report level of more than 30% may indicate that more than 30% of the contents of your assignment is similar to assignment submitted by other students OR that you have not properly referenced the materials you use in your assignment. Studentscan re-submit your assignmenton VU Collaborateas many times as necessary. However, students mustsubmitthe final version of the assignmentin both electronic and manual formatby12PMon the due date. Assignments not meeting these requirements maybe returned forre-submission, with an automatic penalty of four (4) marks for poor presentation. This includes exceeding the 30% limit. Penalty of two (2) marks per day applies for late submission. Penalty-Exceeding the 3000 words limit: FOUR (4) marks deduction.-Exceeding the 30% similarity index limit: FOUR (4) marks deduction.-Late submission: TWO(2) marks deduction per day.PlagiarismPlagiarism is defined as presenting someone else’s work, including the work of other students, as one’s own. Any ideas or materials taken from another source for either written or oral use must be fully acknowledged, unless the information is common knowledge.All students are strongly advised to do the following:-gotohttp://wcf.vu.edu.au/GovernancePolicy/PDF/POA040915000.PDF-enterSchool of Accounting and Finance-enterStudent Resources-readthe PLAGIARISM POLICY. RationaleThe subject aims to familiarise the student to some of the key tools used by auditors for collecting and evaluating evidence, in both manual and computerised accounting information systems, so as to enable them to express an opinion on the fair presentation of financial reports. The subject also aims to provide students with an insight into the current environment in which auditors operate, including legal liability, ethical and other professional aspects such as the “audit expectation gap”. As such, the subject provides both a conceptual and practical approach to external, as well as internal and public sector auditing, enabling students to gaina complete picture of the audit process in light of contemporary audit issues. In addition, the subject aims to enhance a number of generic skills through both the formal components of assessment and the student’s class participation. These include: research, problem solving, and analytical skills; written and presentation skills; and interaction skills. This individualassignment aims to provide students with an appreciation of the initial stageof the audit processknown as audit planning. Specifically, it allows students to develop an understanding of the steps involvedin developing an audit plan. Students arerequired to follow the structure approach specified in Moroneyet al., 2014, AuditingA Practical Approach2e, Wiley. Learning outcomesOn successful completion of this unit, students should be able to:-Develop an appreciation of the reasons for the existence of a societal demand for audit and assurance services, and an understanding of the current environment in which auditors operate, including legal, ethical and professional aspects-Demonstrate an understanding of the key auditing principles, concepts and practices used by auditors to gather evidence and make judgments in order to form an audit opinion on the fair presentation of financial reports-Develop an insight into the audit of specific transactions and account balances-Be aware of the auditor’s responsibility in completing an audit-Obtain basis understanding of other types of assurance engagement BackgroundThere are two parts to the assignment.The first part requires students to set up an entity’s books in MYOB and process transactions to relevant accounts. The second part requires students to prepare a documentfor the Audit Manager. Part AYou have recently graduated from VUand are now working for a small accounting firm. The firm recently purchasesMYOBsoftware for internal use. Upon learning that you had learnt MYOB as part of your study, the firm’spartner asksyou to set up and process a number of transactionsinto relevant accounts.Required1. Set up the firm on MYOB. 2. The financial year must be 1 April2015to 31March20163. Process the transactions listed in Part A_MYOB_S12016into relevant accounts.4. Print out and submit reportsfor the year ended 31March2016.Part B1. You have recently been appointed external auditor of the entity. You are assisting your Audit Manager in planningfor the audit of the entity’s financial statements. 2. You are required to download the annual report published bythe following entity:-Pacific Star NetworkNetworkLimited(http://www.pacificstarnetwork.com.au/)3. Using information from chapters 3 and 4 of the textbook, prepare a documentfor your Audit Manager. Your documentmust includekey informationset outbelow. 4. You have accepted and communicated your decision to the client in theengagement letter. The audit feeis $65,000.RequiredWith reference to Chapters 3 and 4of the textbook, prepare a documentfor your Audit Manager. Your documentmust include the followings:1. Executive summary2. Introduction3. Key information:a)Gain an understanding the clientb)Identify five (5) significant accounts most at risk of being materially misstatedc)Set planning materialityd) Assesswhat can gowrong(audit risk assessment)for each of the five (5) accounts selected in (b)4. Conclusion5. Appendix6. References Additional informationFor the purposes of the assignment, the following auditing standards are relevant:-ASA210 Terms of Audit Engagements-ASA220 Quality Control for Audits of Historical Financial Information-ASA230 Audit Documentation-ASA250 Consideration of Laws and Regulations in an Audit of a Financial Report-ASA300 Planning an Audit of a Financial Report-ASA315 Understanding the Entity and its Environment and Assessing the Risks of -Material Misstatement-ASA320 Materiality and Audit Adjustments-ASA330 The Auditor’s Procedures in Response to Assessed Risks-ASA520 Analytical ProceduresHints and Tips1.You are required to plan the audit using only information that is publicly available. That is, you only use the information that is published by the entity either on its website or printed materials. 2.You must download and use the pro-forma documenton VU Collaborate.3.In identifying significant accounts, you are advised to use analytical procedure –simple comparison to identify five (5) accounts most at risk of being materially misstated.4.When making preliminary judgements about materiality levels and developing preliminary audit strategies for significant assertions, you are required to consider the Income Statement, Balance Sheetand the notes.5.To calculate materiality level for this audit assignment, you are advised to calculate 1%of the total revenueaccount balance, i.e. 1% oftotal operating revenue of $20.86million = $20.86million x 0.01= $208,860. 6.In considering what can go wrong for each of the five (5) accounts selected, you must assess the audit risk for each of those accountsusing the audit risk model.7.Quoting directly from textbooks and reports will increase the similarity index. Quoting without proper referencing will also increase the similarity index.As this assignment requires youto use auditing theoryto prepare a documentfora real-life organisation, quoting from textbook doesNOTmeet the requirements. Students are advised to preparetheir own document.8.VU Collaboratehas the facility to report on whether your assignment is copied from other sources. Penalty of four (4) marks may apply for poor presentation. Serious breaches will be reported to the disciplinary panel.9.Submit your assignment early. A penalty of two (2) marks per day applies to late submission.10.If you want to remove the previous version of the assignment on VU Collaborate, submita blank assignment or a new version.