Audit and corporate governance

Audit and corporate governance Paper details: ASSIGNMENTS AND GUIDELINES Written Assignment Individual (30% weighting) Please take note that this is an INDIVIDUAL assignment. Required: In the planning stage of an audit, it is important that you assess the audit risks – especially the inherent risks – of your audit client. CIMB Bank Berhad the second largest Malaysian bank by assets – RM414b as at 31 December 2014 - provides an interesting case study for illustrating the importance of assessing such risks. Students will be required to assess and evaluate CIMB Bank from an auditing perspective, and: 1. Identify what you consider to be any five (5) key inherent risk factors that could have an impact on the audit of CIMB Bank for the year ending 31st December 2015. For each of the inherent risk factors identified, state why you consider the issue may create the risk of potential misstatement in the financial statements of CIMB Bank for the year ending 31st December 2015. Also, identify any information (audit evidence) you would have gathered during the audit to establish the true nature and effect of the inherent risks you have identified. 2. Based on the information that you have collected in answering question 1 (above), explain and justify your overall assessment of inherent risk for CIMB Bank. Using the audit risk model and the risk factors that you have identified above, discuss how your assessment of inherent risk will impact on the evidence mix for the planning of the audit of CIMB Bank. The report should not exceed 2,500 words (excluding appendices). It must be word-processed. The report must include an accurate word count. The marking criteria and the self-assessment form for the report are detailed on the attached schedules. 16 Presentation of Assignment • The report format is formal. You should prepare a clear, well-structured report complying with the assignment requirements with proper English writing style and language. • The pages of the report should be numbered sequentially (e.g., 1, 2, 3 or page 1 of 12, page 2 of 12, page 3 of 12, etc.). • The assignment must be prepared in 1.5 line spacing on single-sided pages with 3cm left and right margins, respectively, and 2.5cm top and bottom margins, respectively. The font type is Times New Roman and font size is 12. • A list of references should be attached to the end of the report. • A completed Modular Program Assignment Cover Sheet with the names and signatures of group members should be attached securely to the front of the report before submission. Referencing and Plagiarism You must ensure that you comply with Harvard referencing conventions in preparing this assignment and that plagiarism is not an issue. You are expected to adhere to high standards of academic integrity and all assignments submitted for this module may be checked for plagiarism using text comparison software, such as Turnitin in TIMeS, and other means. It is your responsibility to make sure you understand plagiarism, so that you do not present any assessment containing plagiarism. Plagiarism is regarded as a serious issue within the university system with severe consequences for students who have been found to plagiarise. Subject to any specific requirements of external validating or professional bodies, where a student is found to have committed an assessment offence a decision must be taken either to take no further action or to impose an appropriate penalty which may include failing the student and determining whether or not the student will be permitted another assessment attempt. Where it is decided that penalty is to be imposed, the penalty could include one of the following: a) the mark for the assignment be reduced; or b) the mark awarded for the assignment be reduced to zero; or c) the student be deemed to have failed the module, and is not permitted for another assessment attempt for the module. Submission of Assignment Students are expected to present a paper of professional quality. Prior to submission of the assignment, check to ensure that at the very least all aspects of the requirements have been addressed, and that there are no spelling and grammatical errors. GUIDANCE ON MARKING - INDIVIDUAL ASSIGNMENT Name: S/ID: Criteria Marks Maximum Awarded Mark 1. Identifying of inherent risks Use of an auditing perspective: • Inherent risks are specific and provide a detailed explanation of the potential misstatement (broad issues will not accrue any marks) • Reference to applicable Auditing Standards 60 marks • Identifying the evidence needed to assess the inherent risk identified (again, this must be specific to CIMB Bank) • Using the research from question 1 to identify specific inherent risk factors applicable to CIMB Bank • Identifying 5 inherent risk factors 2. Assessment of inherent risk and impact on the evidence mix • Overall assessment of inherent risk based on information collected • Assessment focuses on areas of particular risk revealed by previous research so as to deal with forming an opinion in 20 marks regards to inherent risk • Discussion of the audit risk components and the components of the audit risk model • Conclusions consistent with matters discussed / identified in Question 1. 3. Good Presentation • Clarity and ease of assimilation and understanding. Good structure and logical flow of arguments that carries the 5 marks reader through • Clear referencing – Harvard style 5 marks • For following the brief – eg: adhering the word limit, on-time submission, cleanliness, adequate research, good English 10 marks etc TOTAL MARKS 100 marks 19