Assignment Detail

Assignment ID: FG132449388

HI6026 – Audit, Assurance and Compliance – Holmes Institute
Assessment – The Demand for Assurance and the Benefits of Assurance Services
Purpose of the assessment – Students are required to research the factors which create the demand for assurance and consider the benefits of assurance for key stakeholders, including those employed by the client company as well as the general public at large.
Learning Outcomes:
LO1. Demonstrate an understanding of the reporting requirements of auditing standards (ULO 1)LO2. Demonstrate an understanding of the auditor’s professional, legal and ethical responsibilities to their clients and third parties (ULO 2)LO3. Understand the auditor’s reporting obligations (ULO 5)
PurposeThis assignment aims to enhance students’ critical thinking skills and higher order application abilities by researching what the key factors are which create the demand for assurance services. Students will also need to consider the benefits of assurance services to key stakeholders including: Shareholders, Directors, Creditors, Suppliers, Customers, Regulators and potential investors.
Assignment – The Demand for Assurance and the Benefits of Assurance Services Read the following extract from the “Perspective” article, November 2015, from Chartered Accountants Australia and New Zealand (CAANZ). As stated:
“Assurance can provide value in a number of contexts. In an internal sense, comfort can be gained over such areas as the effectiveness of internal controls, the organisation’s risk management processes, compliance with contractual terms and conditions, and key performance indicators used within the business. In an external regard, organisations that invest in assurance services are able to demonstrate a commitment to transparency, quality and rigour of internal controls and processes. This in turn lends weight to the perception of the organisation as a whole with respect to their governance structure and framework. Independent assurance also provides confidence in an organisation’s externally released information. Examples include broader financial and non-financial corporate reporting information (e.g. published data such as taxation information) and sustainability reporting. The road to integrated reporting and related assurance is another example of the expanding audit footprint.”
Required Activities:
With reference to the article provided above, as a starting point:• Work as a team and discuss the article in your group along with the assignment requirements• Research the main factors which give rise to the demand for assurance services in Australia• Briefly explain and provide examples of the four conditions, which create the need for independent financial audit reports. (Refer to the textbook for guidance)• Explain in detail each of the following three hypotheses which are commonly used to explain the demand for auditing, namely:o Agency Theoryo Information Hypothesiso Insurance Hypothesis• Perform a stakeholder analysis and consider the likely benefits of assurances services to each key stakeholder you have identified.• Consider the benefits of well-conceived and effectively implemented Auditing Standards.• Make use of the resources and reference links listed below to complete the assignment.
Group Formation and Assignment
Students are required to work on the assignment in groups of 4 – 6, produce a group report and a short video presentation of approximately 10mins. Group membership will need to be communicated to the local campus lecturer in writing to the session lecturer by week 6.
Both assessment items must be submitted on Blackboard. The written assignment must be in a report format and submitted through safe-assign prior to final submission. The originality percentage should be as low as possible. The written submission must be double-checked, edited and rephrased if the originality percentage and plagiarism risk is noted as Medium or High, as per safe-assign. Students are encouraged to submit a draft for review and they may be requested to show drafts by their lecturer, as well as the reference material they have used for research.
Video Presentation
Students must use power-points slides with clear dot-points, noting the key information. The video presentation should be considered a professional business presentation, which would be viewed by colleagues in the Auditing profession. All students in the group must participate in the video or marks may be deducted. Video presentations should not exceed the 10mins time limit or marks may be deducted. Impressive video presentations may be played in class provided that consent is given.
Attachment:- Audit Assurance and Compliance.rar