ACCT601 Auditing and Assurance
The assignment questions are concerned with AMP Bank Limited (ASX Code: AMP) which is a financial institution based in Australia that offers deposits, residential mortgage and self-managed superannuation fund products and also offers financial loans and banking services to individuals. AMP Bank Limited is headquartered in Parramatta, Australia and is a subsidiary of the AMP Financial Investment Group Holdings Limited. (AFS Directory). AMP Ltd is Australia’s largest retail and corporate superannuation service provider and runs the largest life risk business in the whole of Australia. Revelations that relate to AMP of systemic misconduct surfaced during the Royal Commission hearings into misconduct in the banking, superannuation and financial services industry in April 2018 included:
a) Unlawfully deducting service fees from deceased customers’ accounts since 2009 (including the practice of charging clients for financial service AMP did not deliver
b) Providing inappropriate financial planning advice to customers
c) Making repeated misrepresentations and misleading the corporate regulator ASIC (Australian Securities and Insurance Commission)
d) Misconduct in in financial planning
e) Interfering with the purportedly independent report for ASIC (delivered after around 700 emails and 25 drafts) by law firm Clayton Utz
f) Breaching the Corporations Act
Following video gives you a background of what happened at AMP in April 2018:
https://www.youtube.com/watch?v=lu7o06S7FGA
You are required to write a business report concerning AMP Limited (ASX Code: AMP) by addressing the following question:
a) Evaluate AMP Limited’s performance with a particular focus on their financial planning and insurance activities, in 2017 with respect to embedding i) common good, ii) stewardship, and iii) sustainability and social responsibility into their business. (10marks)
b) Assess the ethical performance of accountants who are employed at AMP’s insurance and financial planning arms under APES110 and APES230. (10marks)
https://www.cpaaustralia.com.au/professional-resources/accounting-professional-and-ethical-standards/apes-110-code-of-ethics-for-professional-accountants
https://www.cpaaustralia.com.au/professional-resources/accounting-professional-and-ethical-standards/apes-230-financial-planning-services
The Royal Commission heard AMP told ASIC that an external audit by Auditors (Price Waterhouse Coopers (PwC) has not identified any systematic issues.
c) In the context of AMP Limited, explain the purpose of auditing and provide an evaluation of the role of audit function in promoting socially responsible outcomes, common good, and stewardship. (6 marks)
Your report should include an introduction, appropriate headings for sections, conclusions, diagrams or graphs where appropriate.
Grading will be based on critical analysis of the issue, evidence of wide reading on topic, coherence in the development of arguments, use of appropriate evidence, and clarity of expressions. You are expected to cite at least five (5) acceptable sources.