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BUACC3741 Auditing Assignment Help

Semester 1-2017

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ASSIGNMENT

This assignment is to be completed in groups of three and comprises twenty per-cent of the marks for this course. There are three questions. (Approx. 2000 words in total)

Assessment Criteria:

Student work will generally be assessed in terms of the following criteria:

  1. Effectiveness of communication – i.e. readability, legibility, grammar, spelling, neatness, completeness and presentation will be a minimum threshold requirement for all written work submitted for assessment. Work that is illegible or incomprehensible and does not meet the minimum requirement will be awarded a fail grade.
  2. Demonstrated understanding – This will be evidenced by the student’s ability to be dialectical in the discussion of contentious issues.
  3. Evidence of research – This will be evidenced by the references made to the statutes, auditing standards, books, journal articles and inclusion of a bibliography.

Note:

  1. All written work must conform with the Federation University General Guide for the Presentation of Academic Work.
  2. For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalised.

Plagiarism is presenting someone else work as your own and is a serious offence with serious consequences. As set out in the University Regulation 6.1.1, students who are caught plagiarising will, for a first offence, be given a zero mark for that task. A second offence will result in a failing grade for the course(s) involved and any subsequent offence will be referred to the Student Discipline Committee. Student must be aware of the University Regulation 6.1.1 Student Plagiarism.

Students must:

  • fully reference the source(s) of all material, even if you have re-expressed the ideas, facts or descriptions;
  • acknowledge all direct quotations; and
  • not submit work that has been researched and written by another person.

Question 1. (7 marks)

While professional standards require auditors to maintain objectivity, integrity, and notknowingly misrepresent facts (American Institute of Certified Public Accountants[AICPA] 1998), research suggests that various chronic environmental, occupational, and role pressures can influence auditors’ attitudes, intentions, and behaviours (DeZoort and Lord1997). Much of the extant research (e.g., Hackenbrack and Nelson 1996; Ng and Tan 2003;Hatfield, Jackson, and Vandervelde 2011) has focused on client pressure, which suggests thatclient pressure biases auditors such that auditors will typically justify client-preferred treatments.

Client pressure can come in two forms—explicit and implicit. Explicit client pressure occurswhen a client clearly articulates his or her position and desired outcome, as is common in auditorclientnegotiation contexts (e.g., Bennett, Hatfield, and Stefaniak 2015). Implicit client pressuresare client pressures that are implied, but not plainly stated.

Source: CURRENT ISSUES IN AUDITING American Accounting Association Vol. 10, No. 1 DOI: 10.2308/ciia-51370 Spring 2016 pp. I1–I17 INSTRUCTIONAL RESOURCE Using ‘‘The Wave’’ to Facilitate Participants’ Understanding of the Implicit Pressures Associated With the Auditing Profession Chad M. Stefaniak Central Michigan University

As a starting point students may find some initial guidance by referring to

Pressures on Audit Partner’s Negotiation Strategy and Decision Making

Christopher Koch PhD &Steve Salterio PhD FCPA, FCA

https://business.illinois.edu/accountancy/wp-content/uploads/sites/12/2014/09/Audit-Symposium-Session-IV-Koch-Salterio.pdf

Required.

Please expand on what is meant by both explicit and implicit client pressures as it relates to the auditor / client relationship

Question 2.(7 marks)

As a starting point students may find some initial guidance by referring to

The Current State and Future of the Audit Profession.

Danielle R. Lombardi, Rebecca Bloch, and Miklos A. Vasarhelyi (2015) Current Issues in Auditing: Spring 2015, Vol. 9, No. 1, pp. P10-P16.

The Evolution of Auditors – How skillsets are changing

http://www.pwc.com/us/en/cfodirect/assets/pdf/auditing-evolution-technology-driven-skillsets.pdf

Now consider the following

Accountants are like T-Rex’s.

Accountants are the most defensive and loudest of all dinosaurs. They are fierce and their terrifying teeth can easily tear off an auditor’s Zara or Van Heusen coat.

On the other hand, the auditors are like Argentinosauruses. Yes, the big ones. With necks sticking out of the clouds. They can see everything from above.

Required

Explain and describe auditing and its auditor going forward.

Question 3.(6 marks)

Required

In terms of auditing can you reconcile the top two pictures with the bottom two pictures

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