MACQUARIE
BUSINESS SCHOOL
Department of Accounting and Corporate Governance
ACCG 8304
CPA ADVANCED AUDIT AND ASSURANCE
Research Assignment
Semester 2 – 2023
2
Background
The aim of the assignment (comprising 10% of overall assessment in the course) is to
allow students to demonstrate their ability to integrate the skills learnt in Advanced Audit
and Assurance in order to analyse a real company from the auditor’s perspective
(within the framework of auditing standards). The successful completion of this
assignment requires research, employing publicly available information, on internal and
external environments, operations, strategies and analysis of the annual report and
other relevant information, including financial information. Students are expected to
demonstrate their ability to evaluate various pieces of information, including the
relationship between this information, and apply analytical skills to identify potential
audit risks.
3
Assignment Requirements
The assignment is based on BHP Group Limited (ASX code: BHP).
You are to assume that you have been assigned to the 2023 audit of BHP Group Limited. You
have been asked by the audit partner, as preparation for your involvement in the audit, to
prepare a report on BHP Group 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:
https://www.bhp.com/investors/annual-reporting/annual-report-2022
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 BHP Group 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.
This part of the report should be no longer than 1 page and should describe in detail one
(1) key factor for each sphere of influence i.e., total of 4 factors. [4 marks]
2. Provide two (2) specific laws/regulations (other than Corporations Act, Taxation legislation,
ASX listing requirements etc) that would be applicable to BHP Group Limited. Outline why
these laws/regulations are relevant from an audit perspective. Note: the specific laws
should be chosen from different categories.
This part of the report should be no longer than ½ page. [2 marks]
3. With reference to the audited accounts of BHP Group Limited for the year ended 30 June
2022, detail one (1) account 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 this account 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.
This aspect of the report should be no longer than ½ page. [4 marks].
Your response should be presented in the following format:
Key Account at Risk: (0.5 mark)
Key Assertion at Risk: (0.5 mark)
Audit Risk Explanation: (1.5 marks)
Substantive Audit Procedure: (1.5 marks)
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Format
Note that sources must be appropriately referenced throughout the report.
The assignment should be typed and presented in the following format (as a minimum):
• An assignment cover sheet. This can be downloaded from the Research
Assignment tab on the course iLearn website.
• Please pay particular attention to page limits (maximum 2 pages). Material that
exceeds the stated page limit for each question will not be marked.
• The assignment should be presented with normal margins, single line spacing
and a minimum font size of 11 point (Arial) or 12 point (Times New Roman) (or
equivalent font size). APA or Harvard referencing style is required.
• Bibliography (this is required).
• Appendices must not be used.
Submission Details
Please familiarise yourself with the submission requirements. They will be strictly
enforced.
1. The assignment is to be submitted via iLearn (Turnitin) in the Research
Assignment folder by Sunday 3 September 2023 at 11.55pm. Any assignments
received after this time will be considered late and subject to the penalty described
below. Last minute uploading difficulties or computer failure will not constitute an
adequate excuse for lateness. Please keep a copy of your work.
• Late submissions: unless an application for Special Consideration has
been submitted and approved, a 5% penalty (of the total possible mark)
will be applied each day the research assignment is not submitted, up
until the 7th day (including weekends). After the 7th day, a grade of ‘0’ will
be awarded even if the assessment is submitted. Submission time for all
written assessments is set at 11.55pm. A 1-hour grace period is provided
to students who experience a technical concern.
• Incorrect submissions (e.g. submitting the wrong file/old
version/assignments for a different unit,etc) will be awarded a marked of
zero (0). It is your responsibility to ensure that you submit the correct file.
You may resubmit until the due date and time. Any submission on the due
date and time will be taken to be the final. No further submission will be
allowed.
2. The assignment must use an assignment cover sheet and you must complete the
required information on the front of the cover sheet. By submitting the cover
sheet with your assignment electronically you are declaring strict agreement
with the University’s Academic integrity / Plagiarism policy, which if breached
can lead to severe penalties. A copy of this cover sheet is available in the
Research Assignment folder on iLearn.