(a) From your research, identify four (4) issues or events (accounting or otherwise) that may have an impact on the planning of the audit of Woodside Petroleum for years ending on or after 31st December 2013. HINTS: Students should use initiative in answering this question.  Remember auditors are trying to find conditions or events that might give rise to material misstatement. Whilst not necessarily related to Woodside Petroleum, ASA 315 provides some examples of common conditions and events that may indicate the existence of 'risks of material misstatement'. Please go to Appendix 2 of ASA315 of your Auditing Handbook for a broad categorisation of possible events or conditions that might possibly apply to Woodside Petroleum. Please be warned however that you MUST demonstrate clearly (with substantive research evidence that is appropriately referenced) that an identified issue relates specifically to Woodside Petroleum and the planning of its audit.  Inclusion of evidence of research is critical. Do NOT merely use information from the company's financial reports – to score well you must find independent research evidence to support the issue. Better quality research = better quality marks.  Be sure to use in-text referencing (see Harvard Referencing Guide on the Unit Website).  Check your assignment carefully for typographical and grammatical errors. (4 x 10 = 40 Marks) (b) State what audit evidence you would gather in order to gauge the issues identified in part (a) above, for inclusion in the planning strategies for the audit of Woodside Petroleum. HINTS: When auditors identify conditions or events that give rise to the risk of material misstatement, they design information (evidence) gathering procedures in order to establish whether or not the identified risk exists and may result in material misstatement in the financial reports. This question is asking you to use your 'best judgement' to identify relevant audit evidence you might seek in the audit of Woodside Petroleum. All the different types of audit evidence that might be referred to, is shown in paragraphs A10 to A25 of ASA 500. The challenge for students is to make the evidence gathering activities SPECIFIC to the risks you identified in part (a) above. We do not expect you to know EXACTLY what documentation etc you would find at Woodside, but you should be able to identify documents or records or information you would look at and/or people you would speak to, from your experience and studies in the Unit. Broad brush answers (eg "look at sales documents for evidence of unusual sales") will not be sufficient. Think about the specific information you might seek in a real world situation. Where appropriate, be sure to use in-text referencing. (4 x 5 = 20 Marks) PRESENTATION, USE OF APPROPRIATE REFERENCING CONVENTIONS, GRAMMAR AND SPELLING Refer to the marking guide contained in appendix four and guidance notes in Appendix 2 Good referencing and presentation is important (10 MARKS) TOTAL MARKS FOR ASSIGNMENT 1 (Representing 15% of the overall grade for the unit) (70 Marks)4 ________________________________________________________________________________________ ASSIGNMENT 2 (2,000 WORDS): DUE DATE SUNDAY 2 ND NOVEMBER 2014 11:00PM ADELAIDE (CENTRAL STANDARD) TIME. REQUIRED: 1. Identify what you consider to be the 'key' inherent risk factors that could have an impact on the audit of Woodside Petroleum for the year ended 31st December 2013 and/or future audits. For each of the inherent risk factors identified, describe the risk clearly and state how and why you consider the issue may create the risk of potential material misstatement in the financial statements of Woodside Petroleum for the year ended 31st December 2013 and beyond. You are expected to identify five (5) critical inherent risks. HINT: To score well in this assignment you will be required to research the Internet, Woodside Petroleum's financial results, the financial press, and other business media to obtain a better understanding of the inherent risks. You may use and expand on some of the relevant issues you identified in assignment 1 to discuss the nature of the apparent risks. (5 x12 = 60 Marks) 2. Using the audit risk model, discuss briefly how each inherent risk you identified will impact on the evidence mix for the planning of the audit of Woodside Petroleum in the relevant segment of the audit. When referring to the balance between tests of balances, transactions and analytical procedures, indicate which main areas would be critical and comment on the nature and extent of the testing in the relevant segment (see guidance notes in appendix). HINT: With regard to evidence mix, you must apply your understanding of the elements of the audit risk model and use your best judgement and initiative to discuss the impact on the evidence mix in the areas of risk you identified. Refer to Chapter 11 of the textbook for assistance with this concept.