HA3032 Auditing
Trimester 1 / 2013
ASSIGNMENT 1
You are required to read the following statement issued by ICAA (Institute of Chartered Accountants in Australia and provide an essay of 1,500 words. It should be properly referenced and must be primarily of your own work.
Press release:Legislation to improve the quality and transparency of the auditing process has been introduced into the House of Representatives this week by Parliamentary Secretary to the Treasurer David Bradbury. The Corporations Legislation Amendment (Audit Enhancement) Bill 2012is the result of a Treasury review of audit quality and extensive stakeholder consultation during 2011 on measures that are designed to enhance audit quality and ensure that Australia’s regulatory framework remains in line with international best practice.
Measures in the Bill include:
· Requiring audit firms to publish an annual transparency report if they conduct audits of 10 or more significant entities
· Empowering ASIC to issue an audit deficiency report in relation to an individual audit firm if it identifies an audit deficiency in the auditor’s quality control system or the conduct of an audit that may be detrimental to the overall quality of the audit
· Removing duplication of ASIC and Financial Reporting Council (FRC) audit inspection responsibilities so that ASIC continues its audit inspection program and the FRC focuses on providing strategic policy advice and reports on the quality of Australian audits.
· Allowing ASIC to communicate directly with an audited body.
· Allowing a two-year extension to the five-year auditor rotation requirement where it will not give rise to a conflict of interest and will prevent the loss of knowledge and experience where rotation could undermine the quality of the audit.
· Discuss your opinion on regards to these five points.
Other sources:
AUASB website
CPAA website
Required:
Discuss the following in your essay (approximately 1500 words )
What each of the above actually refers to and what it means.
What is your view, giving a rational explanation to your view (you may use other sources to support your view, properly referencing). Why do you think that these measures were introduced?
The due date for this assignment will be week 6 (must be lodged by 5.00pm on the Friday). Please note: a soft copy must be lodged on Safe assign by the due date and a hard copy provided to your lecturer.
Hints for this assignment
There are six points that is included from the bill
Discuss first three points what does it actually means? And discuss each points in each paragraph .As the first three points comes under pacific acceptance case, how did ASIC changed the rules of the audit and accounting. How the rule changed and what are the things that were changed and implemented now.
After that discuss 4th and 5th points what does it actually means? Discuss it in each paragraph. Talk about the AWA case and relate these points with AWA cases. How these things did came into effect in the auditing standard.
The last one is conclusion, your opinion on these five points.
Do proper referencing
