Assignment Requirements

The assignment is based on Myer Holdings Limited (ASX code: MYR)

You are to assume that you have been assigned to the 2021 audit of Myer Holdings Limited. You have been asked by the audit partner, as preparation for your involvement in the audit, to prepare a report on Myer Holdings Limited as part of the planning process. Their current annual report, which can assist in the preparation of the assignment, can be found via the link below:

http://investor.myer.com.au/FormBuilder/_Resource/_module/dGngnzELxUikQxL5gb 1cgA/file/Myer_Annual_Report_2020.pdf 

You are to prepare a report addressing the following questions;

1. A commonly used tool to assist in conducting strategic analysis decomposes the client’s business environment into the following four spheres of influence:

Strengths

Weaknesses

Opportunities

Threats

Prepare a SWOT analysis for the business of Myer Holdings Limited. In conducting this analysis you should research widely. Your research should include, but not be limited to, the nature of revenue sources, conduct of operations, products and services, market conditions, competition and the regulatory environment.

Describe two key factors for each sphere of influence ie total of 8 factors.

2. With reference to the audited accounts of Myer Holdings Limited for the year ended 25 July 2020, detail two (2) accounts for which the risk of material misstatement may be high. Your response must clearly explain, with reference to the information provided in the annual report, the following:

a) Why you would consider each of these accounts to be at significant audit risk,

b) Identify the assertion most affected, and

c) Provide a relevant practical substantive audit procedure that will address the specific risk and assertion.

Your response for each account should be presented in the following format:

Key Account at Risk:

Key Assertion at Risk:

Audit Risk Explanation:

Substantive Audit Procedure: