FIN5007 Accounting and Audit Framework Assignment Brief 2025-26| AU
| Word Count | 3000 Words |
|---|---|
| Academic Year | 202526 |
FIN5007 Accounting and Audit Framework
FIN5007 Assignment Brief
As part of the formal assessment for the programme, you are required to submit an Accounting and Audit framework assignment. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments.
FIN5007 Learning Outcomes
After completing the module, you should be able to:
- Discuss the regulatory environment under which financial reporting is framed and provided
- Apply International Accounting Standard knowledge to complex accounting issues
- Understand the environment in which audit is practiced within the context of corporate governance and professional ethics
- Produce and communicate the implications of accounting and audit issues to the wider commercial environment.
- Reflect upon the impact of accounting and regulation on the preparation of financial reports and their use.
FIN5007 Guidance
Your assignment should include: a title page containing your student number, the module name, the submission deadline, and the exact word count of your submitted document; the appendices if relevant; and a reference list in the AU Harvard system(s). You should address all the elements of the assignment task listed below. Please note that tutors will use the assessment criteria set out below in assessing your work.
You must not include your name in your submission because Arden University operates anonymous marking, which means that markers should not be aware of the identity of the student. However, please do not forget to include your STU number.
Maximum word count: 3000 words
Please note that exceeding the word count by over 10% will result in a reduction in grade by the same percentage that the word count is exceeded.
You must not include your name in your submission because Arden University operates anonymous marking, which means that markers should not be aware of the identity of the student. However, please do not forget to include your STU number.
Please refer to the full word count policy, which can be found in the Student Policies section here: Arden University | Regulatory Framework
Please note the following:
Students are required to indicate the exact word count on the title page of the assessment.
The word count includes everything in the main body of the assessment (including in-text citations and references). The word count excludes numerical data in tables, figures, diagrams, footnotes, reference list, and appendices. ALL other printed words ARE included in the word count. Please note that exceeding the word count by over 10% will result in a 10-percentage point deduction.
Assignment Instructions
Instructions:
This assessment should take you no longer than 3-4 hours and can be completed at any point during a 24-hour window. Please ensure you give yourself adequate time to upload your completed paper to Turnitin.
FIN5007 Assignment Task
FIN5007 Question 1
(A) Crystal Limited is a private limited liability Company with several branches in the United Kingdom. It provides Public relations services and has a staff strength of 200. The Board of Directors of the Company comprises a Chairman, a Chief Executive Officer, two representatives of the shareholders, and two full-time Executive Directors. Mr Brown, a qualified Chartered Accountant, oversees the Internal Audit department of the Company, supported by an Accounting Technician.
Required:
(i) State FOUR internal audit department (4 Marks) (ii) Describe TWO qualities required of an internal Auditor (4 Marks)
(iii) Explain FOUR fundamental differences between an internal and an External Auditor (4 Marks)
(iv) Should the External Auditor place reliance on the work of the internal Auditor? If so, in what way? (3 Marks)
(b) The auditor is responsible for developing the audit plan, which contains the general audit strategy that gives direction and guidance for developing the audit programme.
Required:
(i) Explain THREE objectives of audit planning before the commencement of the detailed audit work. (6 Marks)
(ii) List THREE matters the auditor must take into consideration when developing the audit plan in each of the following situations:
- Knowledge of the entity’s business (3 Marks)
- Risk and materiality (3 Marks)
- Nature, Timing and Extent of procedures (3 Marks)
(Total 30 Marks)
FIN5007 Question 2
A review was recently carried out of the internal control systems of Green Plc. The Audit Committee Chairman, as part of his remarks, said that an organisation has an effective control system in place where the management is committed to accurate financial reporting. The control process provides the organisation with the ability to carry out data analysis and information management, which is required by the business and employees to effectively function.
Control processes enable the organisation to achieve its aims and objectives by focusing on activities designed to safeguard the Management of the assets before, during, and after its daily operations. He concluded that the shareholders receive a great return, and transparency in Financial reporting is achieved where there is an effective and efficient internal control system in place.
Required:
Justify the above case study by identifying and explaining:
(i) FOUR characteristics of an effective internal control system (8 Marks)
(ii) THREE different types of internal control systems (6 Marks)
(iii) THREE main components of internal controls (6 Marks)
(Total 20 Marks)
Question 3
(a) Developing IFRS requires due process to be followed and International Consultation Briefly describe the 6 stages involved in this process. (6 Marks)
(b) An International Code of Ethics for Professional Accountants was developed by the International Federation of Accountants (IFAC) with the sole aim of promoting consistency and a foundation for countries to develop their own code. Explain the five fundamental principles that members must comply with as set out by the ACCA’s Code of Ethics and Conduct. (5 Marks)
(c) Critically evaluate the influence of the Internal audit function on good corporate governance in a commercial environment. (9 Marks)
(Total 20 Marks)
Question 4
(a) At a recently concluded seminar, the following were extracted from the presentation of a financial analyst: “Audited financial statements represent the records of stewardship of a company’s activities and the financial position of a company at the end of a period. The financial report has contributions from the key stakeholders of the organisation, who are required to perform their duties very well. As a follow-up on this, the users of the financial statements should be able to use the report confidently while also supporting good cooperate governance. The financial report is prepared relying on the estimates, judgment, assumptions, and reliable evidence of the Management of the organisation. It represents a useful tool for decision making”. As a newly qualified accountant
You have been invited to contribute to the support of the statement of the analyst at the seminar.
You are required to discuss:
(i) Parties involved in the audit assurance process, stating their duties and rights. (6 Marks)
(ii) When should a professional accept an assurance engagement? (6 Marks)
(iii) How to recognise reliable evidence in an audit and assurance engagement. (6 Marks)
(b) The use of ratio analysis in substantive testing has limitations. Explain THREE limitations of ratio analysis in its use in substantive testing. (6 Marks)
(c) Snowball Group is taking over the business of Ice Limited, including its assets and liabilities.
(i) Explain THREE verification principles you would adopt to ascertain the evidence of the assets and liabilities. (6 Marks)
(Total 30 Marks)
