ACC3AUD Auditing and Assurance

Assignment topic

You are a part of the team responsible for planning the Murray River Organics (MRG) audit engagement for 2019. You and your colleagues are required to gather relevant background information and prepare a report for a meeting with your audit partner. You should conduct extensive research and perform an analysis of the annual report of MRG for the year ended 30 June 2018 and any other relevant information that you have obtained.

Your report must address the following issues:

Required:

1. What are the areas in which MRG conducts its operations?
2. Identify and describe THREE business risks that your team will consider for the MRG engagement.
3. Based on your business risk analysis and understanding of MRG 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.
4. Based on 2018 MRG annual report and information available on the company’s website, can you conclude that MRG complies with Principle 4 of the ASX Corporate Governance Council’s corporate governance principles and recommendations?Explain.
5. Are there are any events or conditions that may cast significant doubt on the MRG’s ability to continue as a going concern? Explain.
6. Identify an appropriate base and set planning materiality for MRG. Explain why you have chosen this base and the percentage you have used.