Module Name: Auditing (AC 34-3)
Assessment Type: Individual Report
Assessment weighting: 50%
Grading Criteria:
The grading of the Written Report will be based on:
The report will be assessed according to the criteria given below:
Information and Research Completion of Tasks (20 %)
Understanding of Issues (20 %)
Application and Analysis (35%)
Presentation and structure (15%)
References (10%)
NOTE: FOLLOWING ARE THE MAIN POINTS ON WHICH DETAILED ANSWER IS EXPECTED.
Introduction of the report:
Discuss the scope and main requirements of ISA 570
Section 1:
Going concern indicators to be discussed here
Revenue and profitability:
Comment here the going concern status of the business based on your analysis of profitability ratios and current revenue and future revenue estimations
Liquidity and working capital
Comment here the going concern status of the business based on your analysis Liquidity and working capital ratios and current revenue and future estimations
Gearing and finance
Comment here the going concern status of the business based on your analysis Gearing ratios and future estimations
Other going concern indicators from the case.
Section 2:
List / Discuss the audit procedures that should be conducted in relation to Global Medico’s cash flow forecast
Section 3:
List / Discuss the relevant audit procedures to be applied in performing going concern reviews.
Section 4:
Discuss few other indicators of an organisations inability to continue as a going concern ( this section is not related to the case…pl do not repeat the indicators identified in section 1).
Section 5:
Discuss the possible reasons for directors not wanting to make going concern disclosures.
Section 6:
Discuss the possible Audit Opinions such as Material and pervasive or Material but not pervasive. Your suggestion should be supported with a suitable rationale
Conclusion:
A brief conclusion with overall summary of report and recommendations.
References:
Academic references should be given in Harvard style of referencing.
Other guidelines:
Literature Review can be embedded throughout the report in various sections, but has to be appropriate, relevant and recent.
Adequate discussion must be evidenced supported by recent references.
Your core area of assignment/report is ISA 570 Going Concern, Audit Evidence in respect of Cash Flow forecasts, audit procedures to be applied in performing going concern reviews, opinions related to Going Concern, scope, main provisions related to ISA 570 and the different basis upon which companies may prepare their Financial Statements where there is a doubt on going concern status, so all discussions should be relevant to these topics, keeping in mind what is asked in the task.
You may end your report with a short conclusion including your observations, suggestions and recommendations relating all or some of the above topics as you feel necessary.
Please take care of your language, as you are expected to use technical terms as and when necessary along with proper grammar, sentence formation and spellings.
Make sure your references are relevant, adequate and recent, also keep in mind the word count.
Please read the assignment rubrics so you understand the marking criteria.
Please adhere to the deadline for Draft checking . Also note that only one draft will be checked.
Turnitin submission link will be available a week before the final submission deadline.
PS: Please note that this is the minimum what is expected from you, you should try to improve your report by doing extensive reading and research in the relevant area and come up with some exceptional, original and relevant content.
All the best.