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Auditing and Assurance (ACC3AUD)
Assignment
Semester 2, 2020
Department of Accounting and Data Analytics
La Trobe University
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This is an individual assignment due for submission on Friday 18th September at 5.00 pm.
Weightage: 20% of total mark
Word Limit: 1,000 words (excludes covering page, executive summary, table of contents,
conclusion and reference list).
It is acceptable to be +/- 5% of the total word limit.
Submission details:
• All submissions must be typed in a minimum 12 font, with double spacing using word
and submitted via the Turnitin link available on the LMS.
• The Turnitin percentage should be as low as possible.
• Report must be submitted in a Word file format- failure to follow this instruction (and
other presentation requirements outlined below) will result in a deduction of marks.
Late Submission
“The standard penalty for late submission of assessment task is 5% of the marks for that task
for each delay in submission of a day or partial day up to a maximum of five (5) working days
after the due date.”
“Assessment tasks will not be accepted after the earlier of the following occurrences:
• The fifth (5th) working day after the due date; or
• Feedback on the assessment task has been returned to any student by
the Teaching Team member”
(La Trobe University)
Presentation Requirements
The assignment must be presented in the following report format:
1. A covering page (containing the title of the assignment, name and student number and
word count)
2. An executive summary (concise summary and overview)
3. A table of contents (presented on a separate page)
4. Body of report with answers to each of the questions, including headings for each
question and part of question (do not include a copy of the question)
5. Conclusion (logical and coherent summation of the assessment task, including key
findings)
6. A reference list (Harvard or APA referencing style). Appropriate references and citations
throughout the report are expected.
7. Page numbering (your table of contents must have the roman numerals.)
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Audit risk assessment and planning
You are a part of the team responsible for planning the A2B Australia Ltd (ASX code – A2B), a
company providing personal transport solutions, audit engagement for 2020. You are
required to gather relevant background information and prepare a report for a meeting with
your audit seniors. Assume that this is the first time that the audit will be conducted by your
audit firm for this client.
Your report must address the following issues:
Required:
(a) What are the areas in which A2B conducts its operations? (4 marks)
(b) Are there any events or conditions that may cast significant doubt on the A2B’s ability
to continue as a going concern? Explain. Your answer should be supported by at least
three factors. (6 marks)
(c) Based on your risk analysis and understanding of A2B and its environment, list and
explain three accounts that could be at risk of material misstatements. You also need
to identify the key assertion at risk for each identified account. (12 marks)
(d) Identify an appropriate base and set planning materiality for A2B. Explain why you
have chosen this base and the percentage you have used. (4 marks)
(e) Lately A2B acquired Gold Coast Cabs (fleet of approximately 400 taxis) to further
advances its strategy of offering quality services on a national basis. How will this
acquisition affect your 2020 audit plan for A2B? Your answer should be supported by
at least four factors. (4 marks)
The answers for above questions should be reflective of your in-depth understanding of how
the A2B operates. You should conduct extensive research and perform an analysis of the
annual report of A2B for the year 2019 and any other relevant information that you have
obtained. (Hint: company’s financial results, financial press and other business media).
A2B’s 2019 Annual Report is available via link below:
https://www.a2baustralia.com/upload/content/pdf/15.%202019%20Annual%20Report.pdf
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Assignment Marks Allocation
The marks for the assignment will be allocated in accordance with the following schedule:

*Final mark (out of 40) will be scaled to 20% to reflect weighting of the assessment task.