Issues in Auditing and Professional Practice

Issues In Auditing and Professional Practice

ASSIGNMENT QUESTIONS
The questions in this assignment are extracted from the text book for this paper;
Reference: Johnson, R. (ed), Readings in Auditing Volume 2, John Wiley & Sons Australia, 2007.
Answer the following 4 questions:
Question 1: (Chapter 10 “Australian Wheat Board”, p135 Question 4)
Discuss the lessons to be learnt from the AWB scandal.
Question 2: (Chapter 12 “Fraud prevention and detection- further guidance”, p158 Question 3)
Explain the role internal controls and code of conduct play in preventing and detecting fraud. How effective are internal controls and codes of conduct in preventing and detecting fraud? Explain your answer.
Question 3: (Chapter 14 “Audit Committees: Effectiveness and diligence”, p187 Question 4)
Discuss the following: “If one aspect of the three- legged stool is ineffective, financial statements will cease to be reliable”.
Question 4: (Chapter 16 “Further guidance for audit committee to fulfil their responsibilities: Override of controls and internal auditors”, p213)
Advise an audit committee member on how to detect management override of controls.

TABLE OF CONTENTS Page

TITLE PAGE……………………………………………….. 1 ASSIGNMENT QUESTIONS………………………………2 ABSTRACT ...……………………..………………………. ..4

QUESTION 1……………………………………….…..........5-7

QUESTION 2…………………………………….…………. 8-10

QUESTION 3 ………………………………………………..11-12 QUESTION 4…………….……………………………..........13-14

APPENDIX 1……………………………………………… 15-17

APPENDIX 2……….. ………………………………………18-19

REFERENCE LIST………………………………………… 20-21

ABSTRACT

We all drive better when there’s a policeman behind us. Given a chance, we all break speed limit rules, stop where we’re not supposed to and for the more daring – go through a red light. We all consider different risks are less offensive than others and some are willing to take chances others would not even contemplate. Is this a question of morality