Audit Response and Its Importance Roan PLC Case Study

Required Work, Format and Grading
You must submit the following by the assignment due date:
▪ Completed answers to each task, making sure that you fully address each of the outcome
criteria.
▪ Answer all questions separately.
▪ Assignments without TURNITIN report will not be accepted.
Resources:
You need to demonstrate a confident application of the theories to the assignment task. The theoretical
underpinning of your observations and deliberations should also demonstrate a good understanding of
the subject by the way that your analysis is structured.
You can access the Internet to research about the topic. You should demonstrate good academic
practice by the appropriate use of academic texts and journals that are properly referenced.
Guidelines and further information about assignment:
Assignment must be submitted with the “Turnitin” report. If the report generated indicates a
similarity index percentage of 20% or more, a review of your assignment is necessary to
ensure the same is reduced to less than 20%.
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Individual Assignment /Fall-2020
Student declaration:
I certify that the work contained in this assignment was researched and prepared by
me:
Signature: ___________________________ Date: ___________________
The user ID and Password for submitting the soft copy of the report
through TURNITIN is as follows:
Class ID: _27000202_ Enrolment Key: Evening 2020
Submission time and date
You should submit the assignment by the time and date mentioned otherwise a ‘NA’ will
be awarded. Fill in the form cover and staple it with your assignment. Make sure that all
the relevant details are complete. Assignments must be submitted by the due date. You
may include diagrams, figures etc without word penalty.
Plagiarism Writing
1. Plagiarism occurs if you use somebody else’s work in an assignment or exam
answer but fail to state where you got the material from. You need to be also
very careful about the amount of words you are using from somebody else’s
work.
2. It can happen in any type of assessment where you are given the questions or
tasks in advance.
3. If another student uses your work in his/her answer(s), both you and he/she will
be punished when caught.
4. Punishments for committing plagiarism can be very severe.
Details
Plagiarism is a form of cheating in which students use the work of others and present it
as their own. It may include all or any one of the following –
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Individual Assignment /Fall-2020
1. Copy extensively from the work of others (from sources such as books,
magazines, journal, websites etc.) and submit the work as your own.
2. Copy another students’ work and submit it for assessment under your own
name.
3. Allow another student to copy your work and then submit it for assessment
under their own name.
What happens if you get caught?
The examining body of CBFS may punish offending students in any manner that they
deem fit. Typical punishments may range from reduction in grades, making students resit modules and even failing students on a module or an entire award. The college
considers this form of cheating as a serious offence. Therefore, be forewarned!
SCENARIO
Ali and Sami audit firm has been the auditors of EXE Co for many years. Before the
commencement of the audit, EXE Co informed Ali and Sami audit team that they are
planning to apply for a huge bank loan to tide up their financial issue.
From the later months of 2019, business has been very dull in EXE Co and the
movement of funds into the company has been extremely poor. Staff salaries in EXE Co
were pending and suppliers had not been paid.
EXE Co believed that the sales would pick up by 2021 again and this one time, they
would need the support of the auditor to help them with a good audit report. A good
audit report will not only help them to get a bank loan but will also help to solve many
other problems within the company.
Question 1
“A unique feature of the auditing profession is the responsibility to follow professional
ethics and act in the public interest.”
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Individual Assignment /Fall-2020
Define professional ethics? Give your understanding of the concept of professional
ethics and legal liability in auditing profession which is to be followed by Ali and Sami
audit firm.
(8 Marks)
Question 2
From Ali and Sami audit firm’s point of view, give your understanding of the reasons for
planning an audit and its risk assessment while accepting the audit of EXE Co.
Contrast the stages of audit planning process to be followed by Ali and Sami Audit firm.