• Assignment 1
Value: 8%
Due date: 25-Mar-2015
Return date: 15-Apr-2015
Length: 1500-2000 (Except: Table of contents and References)
Submission method options
Alternative submission method
Task
This task is based around ABC Learning, an Australian company that was once the world’s largest provider of early childhood education services but which went into receivership in 2008 as a result of inability to service debts and with the auditors unable to sign off on the accounts. Read Cradle Snatch. (ABC Learning Centres and the competition for child care) Forbes, Oct 1, 2007, Vol.180 (6), p.102. You will have watched the CPA ABC Learning Videos in ACC566 Accounting Systems & Processes. If you need to refresh your memory of ABC Learning you will find the videos at this web address youtu.be/YYF6JW9vJKo
Part (a) 4%
Read the Cradle Snatch article.
In this article there is discussion about ABC not paying their employees according to the award. Take the part of an auditor of this company who had discovered that the company did not appear to be paying employees the award wage. Use one of the ethical decision guides in your textbook to help you make the decision as to what you should do about this. Clearly document the process you used to make the decision and identify any people or organisations which should be contacted with respect to your decision and the outcome of your decision. One way in which you can set out your decision process is to set up a table for the ethical decision model with a row for each step in the model and a column setting out your decision process.
An example is provided below using the American Accounting Association (AAA) Model. You can use any of the models from the text book, you do not have to use the AAA model.
American Accounting Association Model Decision making process
1. Determine the facts The facts are: ….
2. Define the ethical issues The ethical issues are…
The stakeholders are…
Part (b) 4%
a range of corporate collapses in the early 2000s resulted in users and preparers of financial accounts becoming sceptical of the audit profession.
How have the audit profession, audit committees and regulators responded to change this perception and restore user confidence in the audit function?
Evaluate whether the audit profession has regained its reputation. Here you can provide your own opinion with supporting reasons for your opinion.
Rationale
This assessment has been designed to assess your ability to:
• be able to explain and critically evaluate influences on audit and assurance services including: Australian and international professional standards, statutory and common laws, regulatory bodies, and public expectations within a global market;
• be able to exercise critical and reflective judgement and appreciate the value of ethical practice.
Marking criteria
Part (a)
Criteria HD/Distinction
37-50 Credit
32-36 Pass
25-31
Description of the ethical decision guide that you are using (10 Mark) Excellent description of the ethical decision guide demonstrating a sophisticated level of understanding including a statement as to why this guide was chosen for this dilemma. Clear description of the ethical decision guide demonstrating a good level of understanding Basic description of the ethical decision guide demonstrating a simple level of understanding
Application of the ethical decision guide that you are using including appropriate references to ethical and auditing standards (30 Marks) Lucid explanation of the application of the ethical decision guide including appropriate references to ethical and auditing standards Minor problems with the application of the ethical decision guide including some references to ethical and auditing standards Ethical decision guide partially applied including some references to ethical and auditing standards
Professional communication
(Note: you are required to space between paragraphs; use Arial 10pt or TNR 12 pt; use 1.5 or double line spacing)
(5 Marks) Work contains distinct understandable statements with no errors.
Extremely well organised.
Content is structured in a manner that facilitates the reader’s understanding. Minor spelling, grammar and punctuation errors. Work shows evidence of proofreading.
Well-structured with one main idea or argument provided per paragraph arguments/ideas. Some spelling, grammar and punctuation errors found but the work is readable and structured.
Work may include
too many ideas in one
paragraph.
Appropriate resources and correct referencing
(5 Marks) Used two or more sources.
All work has been referenced correctly as per APA (6th edn) requirements. Used one or more sources.
All work has been referenced within the body of the answer and in the reference list, with some omissions or errors in terms No additional sources used.
Others’ work is not always acknowledged and there are a number of errors or non-compliance with the APA (6th edn)
Part (b)
Criteria HD/Distinction
37-50 Credit
32-36 Pass
25-31
Identification of actions to restore user confidence to the audit functions (30 Mark) Identification of 5 or more actions to restore user confidence to the audit functions. Actions clearly explained indicating deep understanding of the effect that the action is expected to have. Identification of 4 or more actions to restore user confidence to the audit functions. Actions explained indicating understanding of the effect that the action is expected to have. Identification of 3 or more actions to restore user confidence to the audit functions. Actions explained indicating some understanding of the effect that the action is expected to have.
Evaluation of whether the audit profession has regained its reputation (10 Marks) Lucid evaluation of whether the audit profession has regained its reputation demonstrating deep understanding of the issues Clear evaluation of whether the audit profession has regained its reputation demonstrating understanding of the issues Some attempt to make an evaluation of whether the audit profession has regained its reputation demonstrating some understanding of the issues
Professional communication
(Note: you are required to space between paragraphs; use Arial 10pt or TNR 12 pt; use 1.5 or double line spacing)
(5 Marks) Work contains distinct understandable statements with no errors.
Extremely well organised.
Content is structured in a manner that facilitates the reader’s understanding. Minor spelling, grammar and punctuation errors. Work shows evidence of proofreading.
Well-structured with one main idea or argument provided per paragraph arguments/ideas. Some spelling, grammar and punctuation errors found but the work is readable and structured.
Work may include
too many ideas in one
paragraph.
Appropriate resources and correct referencing
(5 Marks) Used two or more sources.
All work has been referenced correctly as per APA (6th edn) requirements. Used one or more sources.
All work has been referenced within the body of the answer and in the reference list, with some omissions or errors in terms No additional sources used.
Others’ work is not always acknowledged and there are a number of errors or non-compliance with the APA (6th edn)
Guide for writing / answering Part A of Assignment # 1
I. Description of ethical decision guide chosen
II. Reason for your choice
III. Processes used to make the decision (in table format)
( For example if you decide to use AAA Model from the textbook), you can describe your process in this format.
AAA model Decision making process
1. Determine the facts Identify the Facts (what, who, when, etc)
Identify the People/organisation who should be contacted with respect to your
2. Define the ethical issues Who are the significant stakeholders
Define/Describe ethical issue
Etc….. ( there are at least 7 steps in this model)
( For example if you decide to use Laura Nash Model from the textbook), you can describe your process in this format.
Laura Nash Model Decision making process
Accurate Definition of problem What are the precise fact
Definition of problem if I stood on the other side of the fence
What are the alternative viewpoints( how does others perceive it?
Etc…..( there are at least 9 steps in this model)
Guide for writing/answering Part B of Assignment # 1
I. Identification of Actions to restore user confidence to audit function
a) How did audit profession responded to change this perception of users being sceptic about the audit profession
b) How did audit committee responded to change this perception of users being sceptic about the audit profession
c) How did regulators responded to change this perception of users being sceptic about the audit profession
ii. Evaluation of whether the audit profession has regained its reputation
a) Has audit profession regained reputation? If yes why. If no, why not? You need to support your answers with research materials or references.
Other Reminders:
1. You need to demonstrate professional communication in the way you answer the questions
2. Please write in complete sentences
3. Your explanations must be logical and lucid
4. You can cite some standards or other regulations or legislations
5. You are expected to at least used two or more resources
6. You need to read page 24 of the subject outline for the criteria.
Sample of Table of Contents
TABLE OF CONTENTS
Contents Page
Introduction Page 1
Part A: ABC Learning Corporate Collapse Case Study
Description of Ethical Decision Guide Chosen Page 2
Application of the Ethical Decision Guide Page 2
Part B: Evaluation of Regaining of Audit Profession Reputation
Identification of Actions to Restore User Confidence to Audit Functions Page 3
Evaluation of Whether Audit Profession Has Regained Reputation Page 3
Summary/Conclusion Page 4
References/Bibliography Page 5