FACULTY OF BUSINESS PETER FABER BUSINESS SCHOOL Semester 1, 2017 ACCT300: Auditing and Assurance Services ASSIGNMENT 1: INDIVIDUAL ASSIGNMENT Due date : 7 April 2017 by 23.00 hours Weighting : 30% Length : 1,500 words ± 10% (excluding references and appendices) Learning outcomes assessed: LO1 & LO2 The individual assignment aims to give you an understanding of real life auditing problems and an appreciation of the link between theory and practice. It further aims to foster your research, critical analysis and written communication skills. ABC Learning Centers went public in 2001 with a market capitalization of $25,000,000. After a period of aggressive expansion its market capitalization reached $2,500,000,000. The company then went into liquidation in 2008. You are required to provide an analysis of ABC Learning’s downfall from the point of view of corporate social responsibility, common good and stewardship. Your report should cover the following: 1. What was the purpose of the audit, and was it achieved? Discuss. 2. Provide an evaluation of the collapse of ABC Learning about ‘common good’, ‘stewardship’, and ‘corporate social responsibility’. 3. Identify ethical issues which contributed to the downfall of ABC Learning by stating the underlying ethical theory (ies). 4. How did unethical practices affect stakeholders? Discuss. Critically evaluate the role of auditors in detecting unethical conduct. Your report should consist of the following sections: • Assignment cover sheet (with full name, student ID and signature) • Introduction • Table of contents • Body (answers to questions) • Conclusion(s) • References Checklist before submission: o Typed using Microsoft Word in Ariel 12 points with double spacing o Displayed a one inch margin on all sides. o Each question is numbered or is answered under an appropriate title o Pages are numbered o Cover page is attached at the front of the assignment. The cover page can be downloaded from the following link: o https://students.acu.edu.au/home/panels/administration/forms/assessment_and_assignment_forms. You may submit cover sheets separately. o Appropriately cite original work, author(s) etc. Citation and referencing must conform to APA (American Psychological Association) or Harvard referencing format both in the body of the paper and its attached reference section. o Assignment submitted via Turnitin. Following criteria will be used to mark the written section of the assignment: # Maximum marks Allocated marks Comments 1 Introduction 2 2 Purpose of the audit 4 3 Evaluation of collapse with respect to corporate social responsibility, common good and stewardship 7 4 Identification of ethical issues and discussion of those issues with respect to relevant ethical theories’ 7 5 Effect of unethical practices on stakeholders and evaluation of the auditor’s role. 6 6 Conclusion 2 7 Presentation 2 Total 30 RUBRIC FOR INDIVIDUAL ASSIGNMENT ILOs Criteria Standards Below Expectations Meets Expectations Exceeds Expectations Level 1 (NN) Level 2 (PA) Level 3 (CR) Level 4 (DI) Level 5 (HD) LO1: Explain the nature and purpose of auditing, and the manner in which auditing can contribute to the common good and stewardship Purpose of auditing with respect to common good and stewardship Demonstration of poor knowledge of purpose of auditing, and auditing’s contribution to the common good and stewardship Limited and/or no relevant research Demonstration of basic knowledge of purpose of auditing, and auditing’s contribution to the common good and stewardship Some relevant research Demonstration of good knowledge of purpose of auditing, and auditing’s contribution to the common good and stewardship Adequate relevant research Demonstration of excellent knowledge of purpose of auditing, and auditing’s contribution to the common good and stewardship Substantial relevant research Demonstration of outstanding knowledge of purpose of auditing, and auditing’s contribution to the common good and stewardship Extensive relevant research LO2: Describe ethical issues that auditors encounter and their role in dealing with these issues Identification of ethical issues and evaluation of auditor’s role Inability to identify and describe ethical issues and auditors’ role in dealing with these issues. Poor application of ethical standards and ethical theories. Demonstration of basic understanding of ethical issues and auditors’ role in dealing with these issues Basic application of ethical standards and ethical theories Demonstration of good understanding of ethical issues and auditors’ role in dealing with these issues Application of ethical standards and ethical theories is good. Demonstration of excellent understanding of ethical issues and auditors’ role in dealing with these issues. Excellent of application of ethical standards and ethical theories. Demonstration of outstanding understanding of ethical issues and auditors’ role in dealing with these issues. Outstanding application of ethical standards and ethical theories. .