Assurance, Audit Fees and Good Governance

Assurance, Audit Fees and Good Governance 

Group Assessment Details and Submission Guidelines

Required Task:

Part 1: Demand of adequate Assurance: (15 marks)

In 2002, the audit firm Arthur Andersen collapsed following charges brought against it in the United States relating to the failure of its client, Enron. Some other clients announced that they would be dismissing Arthur Andersen as their auditor even before it was clear that Arthur Andersen would not survive.

Required: 

a. Explain demand from audit and assurance services under Sarbanes- Oxley Act (2002)? (5 marks) 

b. Explain auditors understanding of corporate governance revision, update and arguments after SOX Act (2002) (10 marks)

Part 2: Audit Fees Determination and ASX CGC Principles (20 marks)

All companies are required to disclose in their annual reports the amounts paid to their auditors for both the financial report audit and any other services performed for the company.

Required:

a. Obtain a copy of a recent annual report (2019) from ASX Top 100 listed companies list (most companies make their annual reports available on the company’s website) and find the disclosures explaining the amounts paid to auditors. How much was the auditor paid for the audit and non-assurance, or other, services? Explain your understanding about demand and supply theories of audit fees from this company?

b. Explain your selected company’s (same selected company from question a) application of ASX CGC principles using Corporate Governance Principles and Recommendations(4th Edition) was released on 27 February 2019?

Source: https://www.asx100list.com/. You can choose any company from list. You DO NOT need any approval from Unit Coordinator.

The assignment structure must be asfollows:

1. HolmesInstitute Assignment Cover Sheet – Full Name, Student No., Contribution.

 2. Executive Summary • The Executive summary should be concise and not involve too much detail. • It should make commentary on the main points only and follow the sequence of the report. • Write the Executive Summary after the report is completed, and once you have an overviewof the whole text. • The Executive Summary appears on the first page of the report. 

3. Contents Page – This needs to show a logical listing of all the sub-headings of the report’s contents. Note this is excluded from the total word count.

 4. Introduction – A short paragraph which includes background, scope and the main points raised in order of importance. There should be a brief conclusion statement at the end of the Introduction. 

5. Main Body Paragraphs with numbered sub-headings – Detailed information which elaborates onthe main pointsraised in the Introduction. Each paragraph should begin with a clear topic sentence, then supporting sentences with facts and evidence obtained from research and finish with a concluding sentence at the end. 

6. Conclusion – A logical and coherent evaluation based on a thorough and an objective assessmentof the research performed.

 7. Appendices – Include any additional explanatory information which is supplementary and/ or graphicalto help communicate themain ideasmade in the report. Referto the appendicesin themain body paragraphs, as and where appropriate. (Note this is excluded from the total word count.

complete case study is attached below