Your Task

You must complete a report detailing your findings and suggested audit procedures as stated in Assessment Question for an ASX listed company.

Assessment Description

This assessment is designed to test your ability to apply the knowledge gained from ACCM4400 workshops during the semester, in identifying assertions at risk and developing appropriate audit procedures. This will be done by analysing available information of an Australian company (hereinafter referred to as “The Company”) that is listed on the ASX.

You are required to complete Assessment 3 based on the following ASX listed company:

TPG Telecom Ltd (ASX Code: TPG)

You can access TPG Telecom’s 2021 annual report here.

You can also get additional information about TPG Telecom from the company website at this link. Please take note that TPG (TPG Internet Pty Ltd) is part of the TPG Telecom Limited group of companies. Your assessment is based on TPG Telecom Ltd and not just on TPG (TPG Internet Pty Ltd)

You will also be able to find a lot of information about TPG Telecom and the industry it operates in, online.  

Assessment Question:

During your semester break, you participated in a vacation program at a local audit firm. During the vacation program, you assisted an audit senior on the planning of a medium sized company, including developing appropriate substantive audit procedures. You have one more semester to complete your post graduate course and have indicated to the audit manager that you would like to work on a fulltime basis at the audit firm on completion of you course.

The audit manager has asked you to write a report as part of the process of determining your suitability as a candidate for a permanent role in the audit firm. The manager wants to assess your ability to apply the knowledge you gained, to the audit planning process and developing appropriate substantive procedures as well as your report writing skills.

You are required to address the following in your report:

1. Identify 4 business risks of The Company, that will increase the risk of material misstatement (specifically inherent risk) at the assertion level for classes of transactions or account balances. For each business risk, identify only 1 class of transaction or account balance (income statement or balance sheet line item), and for each class of transaction/account balance please identify the assertion most (only one) at risk of misstatement. You need to explain why each business risk will lead to a risk of misstatement to the specific class of transaction/account balance and assertion that you have identified.

2. Describe in detail, the appropriate substantive procedure that will address each of the class of transaction or account balance and assertion identified as at risk of material misstatement. The description of procedures must be detailed enough for someone without auditing knowledge to be able to carry out the procedures correctly.

Additional Requirements:

You must include the following in your report:

1. Title page

2. Table of contents

3. Executive summary

4. Introduction

5. Body of report

6. Conclusion

7. References

Sources of information for this assessment may include:

1. The latest annual report of The Company

2. The Company website

3. Announcements on ASX with regards to The Company

4. News articles on The Company

5. Corporate Governance statements of The Company