ACC304: Auditing and Assurance - Immuron Limited Case Study - Auditing Assignment Help

Assignment Task :

Background 

The purpose of this group assignment is to give students the experience of working in a team as would be the case in an audit firm. Students will be required to prepare a report which will be used in making a decision on whether to accept a new audit client. 

Group assignment instructions: 

1. Each group will consist of a maximum of three (3) students.

2. Problems with inactive group members who do not respond to reasonable work arrangements should be discussed with the lecturer well before the due date of the assignment.

3. Each student in the group must submit a self and peer review in the self and peer review form provided. Each group member will need to give reasons for the marks given to themselves and each group member. The marks should be based on contribution, willingness to cooperate and work together with other group members, and completing tasks on a timely basis. An average of the marks for each student (what was awarded to self and what group members awarded) will form part of each student’s total marks. Please e-mail your completed form to your lecturer.

4. ONE student in the group should submit the final version by the due date ensuring they record the student name and student number of each person in the group in the assessment cover sheet.

ASSIGNMENT QUESTIONS You have been assigned to a team to determine if your audit firm should accept the audit for Immuron Limited (ASX Code: IMC). Your team is required to prepare a client evaluation report for the audit partners, to enable the partners to make the final decision. Please include the following in your report: 

1. Provide an overview of Immuron’s business and industry (Pharmaceutical industry) which you believe will be relevant to an audit and explain why this information would be relevant. You need to consider any recent developments. Note: There will be many issues that should be included here but for this assignment, please discuss 2 major areas for business and 2 major areas for industry.

2. Identify 4 areas of business risks for Immuron and give a brief explanation of the identified risks. Discuss how these risks can lead to risk of material misstatement. (you will need to mention specific transaction/ balance and assertions at risk and why you think these are risk areas). 

3. Review Immuron’s corporate governance practice (Refer to Immuron’s corporate governance statement) and give your opinions on whether you can rely on the internal control environment.

4. Based on your findings, would you recommend accepting this client? (you are allowed to include any assumptions, especially with regards to the audit firm you work for)