PROJECT BKAA2013 AUDIT AND ASSURANCE 1

BKAA3023 Auditing & Assurance II

Group Project

BKAA3023

AUDITING & ASSURANCE II

Semester 1, Session 2014/2015 (A141)

GROUP PROJECTBKAA3023

AUDITING AND ASSURANCE II

Semester 1, 2014/2015

GROUP PROJECT

The current project is designed to allow some exposure to the BKAA3023 students on audit related information including getting accustomed with the companys annual report and its contents. At the same time, it will help to develop students information gathering skills, promote critical thinking and also to build the spirit of team-work among the group members. Students are expected to make collective effort to go about obtaining copies of the annual reports and seeking solutions to the questions put forward in this class project.

REQUIREMENTS:-1. Students are required to form a group of five as assigned by their lecturer. Please select a leader among the group members.2. The groups are required to suggest a companys name of listed companies from various industries (Eg: Plantation, Construction, Trading, Industrial Product, Consumer etc) to their lecturer before proceeding with the project. 3. Groups are expected to treat this project seriously, work with team spirit among group members and produce an excellent project paper.4. Groups are required to submit the written project by the 9th week of the semester (2 November 2014/Sunday) and will be followed by the class presentation beginning on 5 November (Wednesday) 2014.

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

Project needs to be written in English, with double spacing and 12 font- size; and paginated. Start answering each question on a new page.

Please bind the project papers accordingly. All names and matric numbers of group members; as well as class group (A, B, C or D) need to be listed on the front page of the project paper.

Every source obtained from the annual report must be included as a reference or citation in the appendix.

6. Format of the front page of the project paper:

QUESTIONS:-1.0 Review thoroughly the annual report that you have chosen. 1.1. Name the entity understudy. How did you obtain the annual report?

(1 mark)

1.2 Based on the types of industries classified by the Malaysia Bourse, your chosen entity falls into which category? Why did it fall into such category?

(1 mark)2.0 Take a look at the front cover and the overall content of the annual

report. Give your views regarding the following:

2.1 What is the image your entity is likely or trying to project?

(2 marks)

2.2 Based on the overall content of the report, how did the entity breakdown the information? What are the statutory and voluntary disclosures of items or information? Give examples.

(4 marks)3.0 Thoroughly examine the financial statements of your chosen entity:

3.1 What are the statements enclosed by your entity? Are they similar to what you would find in the text book? Explain.

(3 marks)

3.2 Comment on the format of the financial statements? Is there any standard format that entity has to follow?

(4 marks)

3.3 Comment on the financial information provided by the entity? Are they adequate?

(3 marks)

3.4 Does the entity have sound financial standing? How about the non-financial performance? Support your answers with some analysis.

(8 marks)

4.0 Take a closer look at the entitys Auditors Report:

4.1 Did the entity enclose the report? If not, what are the reasons?

(1 mark)

4.2 Who audited the financial statements? Name the firm/auditor if possible.(1 mark)

4.3 What type of audit report was issued? Why is it so?

(4 marks)

4.4 List out the entitys subsidiaries. Did they have the same auditor? Were their accounts qualified?(3 marks)5.0 Search for information regarding the entitys Audit Committee.

5.1 Has the entity established an Audit Committee? When was it formed?

(1 mark)5.2 Did the entity list out names of the members? Are they independent or non-independent members? What is your view on the composition of members?

(3 marks)

5.3 Did the entity state the Audit Committees terms of reference or charter? Describe.

(2 marks)6.0 Search for some current external information regarding your chosen

entity?

6.1 What are the economic factors that might have some influence on the performance of your entity? Explain.

(6 marks)

6.2 Is there any development on current local rules, regulations, acts which your entity should be concerned about?

(6 marks)

6.3 Name and explain at least two (2) social factors that your chosen entity should pay attention to?

(6 marks)7.0 If you are the reader or user of the information in the annual report that your entity provided:

7.1 What additional information would you like them to provide? Support your answer.

(3 marks)

7.2 Provide two suggestions on how the chosen entity may improve the quality of report?(3 marks)8.0 From 28th July to 8th October 2010, daily monitored the share prices of your entity. Imagine for some time, you have owned a substantial amount of shares in your chosen entity.

8.1 Based on the share prices analysis (eg: share prices monitored, graphs of price fluctuations, financial ratios calculated), and information gathered (Auditor Report, economic; social and legislative factors, performance analysis etc), please COMMENT on the going concern of this company.(8 marks)BKAA3023

Auditing and Assurance 11

Semester 1, Session 2014/2015

GROUP PROJECT

Companys name

Prepared by:

Class PositionMatric NumberName

Class Group A

Prepared for:

(Lecturers name)

Submission date:

2 November 2014

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