Referencing Styles : Harvard At your first meeting decide within your team which student will complete which question. It is a good idea that before your first meeting that each team member reads the case study so that they are able to present their point of view about the case study. It is recommended that each group member is allocated a question, you should then allocate a different group member to provide feedback on the answer given for each question. This is a suggestion only and you can allocate the work differently but keep in mind that every student in your team must participate and answer questions as well as provide feedback to others. Please record details of your first meeting using the document titled ‘Action Plan Template.’ You should also document who is answering which question and who is providing feedback on that question. Set deadlines that group members agree to have their questions and feedback finished and record these details. Provide a copy to each team member to ensure they all agree on what was said. Part A: Group Task 1 250 – 1 500 words (8 marks) The case data (Baby Blue Pty Ltd) is given in a separate file. Imagine that you are a graduate analyst working in the private business department of the accounting firm, Master Accountants. The department provides external audit services to private businesses around Australia and has recently received a new client, Baby Blue Pty Ltd. As part of the audit, Master Accountants needs to assess Baby Blue’s internal control system and conduct a fraud risk assessment. Your supervisor would like you to work as a group (team) with three other graduate analysts from the firm and meet with the concerned client next week (Baby Blue Pty Ltd). In preparation, your supervisor has provided you with the financial statements of the client company for two years as well as some background on the current accounting processes that are in place. The group is required to prepare a brief report prior to the upcoming meeting. Your supervisor also informs you that he is concerned that there is fraud occurring within this client’s business and asks you to undertake analysis regarding Baby Blue’s financial statements and internal control environment. Required: Your group is required to refer to the company’s annual report for 2015 and 2016, and produce a report. The report should address the following: 1. Apply the fraud triangle to explain the fraud risk factors present in the case study that relate to fraud. Identify and discuss the opportunities, motivations and rationalisations that may be present to encourage fraud to occur in Baby Blue Pty Ltd. 2. Conduct a horizontal and vertical analysis for 2 years. Comment on any unexpected results and unusual trends the analysis might reveal and what might have caused these results. The results and calculations must be included as an appendix in the report. 3. Using the case study information, identify and discuss 3 existing internal control procedures (one at least must relate to Cloud Accounting) that are of concern. Justify why these internal control procedures are of concern. 4. Determine a number of methods the company can implement to overcome the issues highlighted in point 3. Discuss how these methods will help solve the issues identified.