ASB 3214: Auditing
Case Study: Spring 2016
REQUIREMENTS
You will be allocated a company quoted on the Alternative Investment Market (AIM) on the UK stock exchange. You should obtain, or download a copy of, the companys last annual report containing audited financial statements.
From the financial statements, the annual report and other sources, and using appropriate auditing procedures, identify THREE areas of heightened audit risk relating to the audit of this company this year. Explain in detail, using quantitative and qualitative analysis, why you consider these to be areas of increased audit risk. (50%)
In relation to ONE of the areas selected in Part A identify in detail, and explain the reasons for, FIVE substantive audit procedures you would carry out in attempting to reduce audit risk to an acceptably low level.(50%)
ADMINISTRATIVE DETAILS
This assignment will count 20% towards your final mark for the auditing module. The word count for this assignment is 1,500 words ( 10%). You are advised to allocate the word count equally between Parts A and B. Workings for any computations carried out in relation to the assignment should be included as an Appendix and need not be included in the word count.
The submission deadline for this assignment is 4pm on Friday 15th April 2016. You should submit a hard copy and an electronic copy via Turnitin in the normal way.
You are reminded that your references and bibliography should include, inter alia, details of all internet resources used and consulted in the course of your assignment.
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