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CORPORATE AUDITING

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Part 1 Write a Business Report addressed to the FRC which:  Distinguishes between non-audit services and audit services  From the company’s perspective, discusses the advantages and disadvantages of engaging itsauditor to also perform non-audit services.  Concludes by stating your opinion on whether auditors should be prohibited from providingnon-audit services to their audit clients. Justify your opinion by referring to the evidenceprovided by relevant academic and professional articles that you have obtained through yourresearch. Part 2 Required:Based on the 30 Jun...

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Question Preview:

Part 1 Write a Business Report addressed to the FRC which:  Distinguishes between non-audit services and audit services  From the company’s perspective, discusses the advantages and disadvantages of engaging itsauditor to also perform non-audit services.  Concludes by stating your opinion on whether auditors should be prohibited from providingnon-audit services to their audit clients. Justify your opinion by referring to the evidenceprovided by relevant academic and professional articles that you have obtained through yourresearch. Part 2 Required:Based on the 30 June 2016 annual report for Myer Holdings Limited (available on CloudDeakin),prepare a planning memorandum for the audit partner which includes the following: a. Identification of four (4) major business risks of the company and a detailed explanation of whyeach factor identified is a risk to the business. b. Results of analytical procedures. It is recommendthat you prepare a horizontal analysis and prepare key ratios. Identify and explain which changesin the horizontal analysis and which ratio results would trigger further investigation in the audit. c. Your identification and explanation of four (4) inherent risks that you identify from the businessrisks and analytical procedures. d. Identification of a key account and a key related assertion at risk of material misstatement basedon the inherent risks you identify in part (c). e. An assessment of the overall inherent risk including an explanation of the factors that lead to thisassessment. f. Planning materiality in a $ amount. You must include a breakdown of your calculation and ajustification of your choice of base, the percentage used and your assessment of detection risk.Assume control risk is high.

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Corporate auditing styles and techniques have been advancing onto Myers Holdings allowing them to have free-flow of knowledge regarding internal activities. The study explores the operations of Myers Holdings exploring information regarding theories and regulations regarding assurance and audit. It seeks the idea of non-financial and financial ventures undertaken by the company. Furthermore, the study investigates auditing procedures within various business scenarios.

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