ACC 2034 - Audit 1. Engagement Objective and Deliverables (10%) (400 words) - Briefly describe the objective and scope of the upcoming audit. - Specify the company's financial year-end. - Explain the statutory and regulatory requirements related to the audit. - Discuss the likely reports to be produced by the auditors. 2. Understand the Entity and Its Environment (20%) (800 words) a) Understanding the Entity and Its Environment - Provide an overview of the company's business and industry. - Explain the company's group structure and business strategy. - Assess inherent risks using PESTEL/PESTLE analysis. - Conclude with an assessment of the inherent risk of the company. b) Understanding the Internal Control Environment and Risk Management (800 words) - Provide an overview of the internal control environment of the chosen company. - Assess the internal control environment based on publicly available information. - Evaluate compliance with recommendations on risk management and corporate governance. - Conclude with an assessment of the control risk of the company. 3. Identify and Assess Key Business Risks (20%) (800 words) - Review the company's financial information for the past three financial years and the latest interim report. - Analyze financial performance and position. - Consider the impact of the company's accounting framework and new accounting standards. - Evaluate significant corporate exercises, multi-locations/business units, and related parties. - Conclude with an assessment of the company's business risks. 4. Assess Audit Risk and Determine Materiality (20%) (500 words) a) Assessing Audit Risk - Assess the detection risk, risk of material misstatements, and audit risks of the company using the Audit Risk Model. b) Determining Materiality (500 words) 5. Propose an Overall Audit Strategy (20%) (700 words)