Assume that your team is responsible for planning the audit for both “Wesfarmers” (year ended 30 June 2014) and “Virgin”(year ended 30 June 2014) discuss your strategies in relation the questions noted below – (A). Identify at least three (3) inherent risks that you would have considered for each company in the audit planning phase and justify your answer (B). What audit procedures and/or tasks would you have plan to carry out in response to the inherent risks identified by you in (A) above? (C). Carry out an analytical review on the financial statements of these companies in the planning phase and identify areas of concern (high risk or problem areas) or comfort. Justify your answer - identify at least three (3) points for each company. (D). What audit procedures and/or tasks would you have planned to carry out in response to the high risks or problem areas identified by you in (C) above? Alternatively, in relation to which area would you have minimised your evidence gathering procedure? (E). An Independent Auditor’s Report to the Members has been issued for each company: (a) Identify the type of audit opinion issued by each auditor, and justify your answer. (b) Do you agree with the type of opinion issued by the auditor? Why or why not? Please indicate an alternative audit opinion if you do not agree with the one issued. (c) Are there any other matters or events that have taken place after the issue of the audit report that strengthens or weakens the auditor’s opinion? (F). In relation to corporate governance research and justify your answer to the following questions- (a) Do the above companies have any process relating to corporate governance? (b) Under which section of the annual report would you expect to find information on it? (c) Do the companies have an audit committee and does it have the correct composition? (d) In your opinion, are audit committees of benefit to the auditor, the company, the auditing profession and/or society as a whole? Group Assignment: Research and Presentation PART 2: (30 Marks) The Australian Securities and Investments Commission (ASIC) released Information Sheet 196 in March 2014 titled “Audit Quality: the Role of Directors and Audit Committee” In your own words (as a group/team) briefly explain/answer the questions below and justify your answer in each instance (Word Limit - not more than 750 words) a) What you (as a group/team) understand by audit quality? b) Do you think that “audit quality” is an important issue? Why or why not? c) Do you think that the directors and/or the audit committee assist ‘audit quality’? If so, how? d) The CAANZ (formerly ICAA) in a document titled “The Benefit of Audit: A Guide to Audit Quality” identified five drivers of audit quality. What are these five drivers? Do they have any impact on audit quality? e) Do you believe that literature of the above nature will be of benefit to the auditor, the auditing profession and/or society as a whole? Why or why not? You are required to: 1. Complete the above questions submit your answer electronically using the link on the student portal under assessments overview and submission. A copy of the minutes of team meetings (noted below) should also be attached. Please make sure that all members of the team sign the minutes of the meetings. 2. Group Presentation – prepare and present a group presentation of 10 minutes on all or some of the material you have researched in parts 1 and/or 2 above. All members of the group should be part of the presentation. Questions will be asked of the group during and/or after the presentation. You are also required to assess the other members in your team (peer review) in terms of their contribution and award each one a mark out of 5. The lecturer will also award each one of you a mark out of 5 for your efforts in team work. Summary of Marks: Part 1 Written (Group) 50 marks Part 2 Written (Group) 30 marks Presentation (individual) 10 marks Teamwork (lecturer and peer) 10 marks 100 Marks Team Meetings The team should have a minimum of three meetings (the team may have as many meetings as they need to) and should maintain minutes of those meetings detailing - 1) Where the meeting was held 2) People present; absent; apologies 3) What was discussed and agreed on; 3) The follow up action relating to each member of the team; 4) Any other relevant matter, things you agreed or disagreed on etc. The team meeting minutes should be included with the hard copy of your assignment as an attachment.