ACC302 Assignment.docx - Assignment Cover Sheet All assignments are to be submitted electronically via Turnitin on or before the due date of the

ACC302 Assignment.docx - Assignment Cover Sheet All...

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Assignment Cover Sheet All assignments are to be submitted electronically via Turnitin on or before the due date of the assignment unless otherwise specified. TEAM ASSIGNMENT Group Members’ Names Student Number 1. 2. 3. 4. 5. Your assignment should meet ALL the following requirements: (Please confirm by ticking each item before submitting your assignment) Section above has been filled out correctly Assignment is in an easy to read, 11 pt font, arial font, with 1.5 spacing Assignment is referenced properly (in-text and end-text references) Pages are numbered Declaration below is completed and signed I have kept a copy of this assignment ALL FORMS OF PLAGIARISM AND UNAUTHORISED COLLUSION are regarded as serious academic misconduct by Kaplan Business School and may result in penalties, including failure of the unit and possible disciplinary action. If you are in doubt, consult your Lecturer. Submission date :
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Question 1 Inherent risk Justify your answer Assertion and ledger Account(s) impacted Audit Procedure/ Task High volatility of fuel prices and foreign exchange Qantas Group operates in different countries from Australia, North America, Europe, Africa and Middle East. The states use different currencies making it hard to determine the rate of exchange. The changing prices of oil also pose high risk to the company since it does not produce oil. Assertions impacted are Accuracy and valuation as it is essential to ensure correct balances and rates of exchange. The bank account will be credited with the amount used to pay for fuel depending on the exchange rate. The fuel expense account is also debited with the amount used to purchase fuel. The auditor should check the country and date when fuel is purchased to determine the rate of exchange and confirm its accuracy. The risk of incomplete financial information from the branches. The Qantas Group is a multinational airline company and operates in different countries across the world. The failure of one branch to submit complete financial statement can affect the auditor’s report (Arens 2012). Assertion impacted is completeness. It is important to ensure that all transactions and balances from the branches are correctly transferred to the main office (Gupta, 2005). The bank account and all expenditures accounts relating to The auditor should put in place procedures to check all the financial information submitted from the branches and ascertain that all the details are available. 1
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the branch would be impacted. The risk due to changes in technology The Qantas Group being in an airline industry requires constant development in technology. If the company is unable to use efficient and up-to date technology, it is likely to make loses due to high competition from its rivals (Cascarino 2005).
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