ASB 3214: Auditing
Case Study: Autumn 2017
ASSIGNMENT REQUIREMENTS
You will be allocated by your module tutor a company quoted on the Alternative Investment Market (AIM) on the UK stock exchange. You should familiarise yourself with your company and print out, or download, a copy of the company’s latest annual report containing audited financial statements.
This assignment is in two parts, both of which should be completed.
Part 1
With close reference to the IESBA Handbook 2016 you are required to:
a) Identify and describe ONE ethical threat which may arise inhibiting compliance with the fundamental principles of professional ethics;
b) Evaluate the significance of the identified threat, and
c) Identify and discuss relevant safeguards which would reduce the threat to an acceptable level.
(50%)
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Part 2
From the financial statements, the annual report, and any other appropriate sources, using relevant risk assessment procedures, identify THREE areas of heightened audit risk relating to the company for the most recently audited financial statements. Explain in detail, using quantitative and qualitative analysis, why you consider these to be areas of increased audit risk.
(50%)