Auditing

                  

MAJAN UNIVERSITY COLLEGE

FACULTY OF BUSINESS MANAGEMENT

STUDENT ASSIGNMENT COVER SHEET

Module Name and Level	AUDITING Level 3
Module Code	AC34-3
Assessment Type & weighting:	Individual Report

Module Name: Auditing (AC 34-3)

Assessment Type: Individual Report

Assessment weighting: 50%

You are working as an audit assistant in a firm which is external auditor for Zadjali Engineering, which is a listed company in Oman hasrevenue of OMR 100 million. The head office site includes the manufacturing unit, theaccounting functions and main administration. There are a number of sales offices indifferent parts of the country.

Zadjali Engineering does not have an internal auditdepartment.As a part of the interim audit you have been assigned to the audit of the wages system. This willinvolve obtaining an understanding of the wages system, testing the controls and performing substantive procedures in order to verify wages transactions.

The wages records are maintained on a computer and all wages information isprocessed at the head office. Some of the employees in the manufacturing unit arepaid in cash, and all other employees have their wages credited directly into their bankaccount.

Employees  working in manufacturing are paid their wages a week in arrears. All other employeesare paid at the end of each week or month.

There is a personnel department which is independent of the wages department. Thepersonnel departmentmaintains records of the employees, including their starting date, grade, current wage rate and leaving date (if appropriate).

Previous years' audits have revealed frauds by wages department staff facilitated byweaknesses in controls in the wages system. These frauds include

·       paying employees after appointment but before they commenced work;

·       paying employees after they have left; and

·       Paying fictitious employees.

A check of current controls in the wages system has revealed that the company hasfailed to instigate controls to prevent these types of fraud recurring. So the audit programme requires extensive substantive procedures to be carried out to ensure thatrecorded wages that has not been misstated by similar frauds taking place inthe current year.

The existence of employees at the head office site can be verified by physicalinspection. From cost effectiveness point of view, only a small sample of sales officeswill be visited. The audit manager has asked you to consider the audit procedures youwould carry out to obtain sufficient appropriate evidence of the existence of employeesat sales offices not visited by the audit staff.

The audit manager has explained that 'unclaimed wages' (in part (c) below) arise whenmanufacturing employees are not present to collect their wages (when they are paidout in part (b)). The unclaimed wage packets are given to the cashier who records theirdetails in the unclaimed wages book and is responsible for their custody.

Anyemployee who has not received his/her wage packet at the pay-out can obtain it fromthe cashier. You have ascertained that there is no system of checking the operation ofthe unclaimed wages system by a person independent of the cashier and the wagesdepartment.

You have been requested by your audit senior to write a preliminary report and you are supposed to include in your report the following:

1. Address and discuss the normal controls you would expect to see in a wages system and explain their purpose.

2. Describe how you would verify that employees are not paid before they commenced work for the company.

3. Describe the audit procedures to be carried out in connection with attending a pay out of wages in cash to employees working in manufacturing department.

4. Describe the substantive procedures on transactions you would carry out on the unclaimed wages system.

5. Discuss the evidence you would obtain to verify the existence of employees whose wages are paid directly into their bank account, including those at sales offices.

6. Since Zadjali Engineering, has recently acquired that status of a Listed  Company, you are requested by your audit senior to write a separate write up for the company in which you explain the company the need/purpose for having accounts audited and the benefits of audited accounts

7. Discuss the inherent limitations of an audit report.

Grading Criteria:

The grading of the Written Report will be based on:

The report will be assessed according to the criteria given below:

q  Information and Research Completion of Tasks (20 %)

q  Understanding of Issues (20 %)

q  Application and Analysis (35%)

q  Presentation and structure (15%)

q  References (10%)

INSTRUCTIONS

Your work will be graded on the following aspects:

1.    This is an individual report.

2.    The assignment MUST be submitted on-line (through MOVE) on or before the due date 29-8-2018

3.    Your assignment shall reflect the depth and breadth of your original analyses in a clear and coherent manner.

4.    Use of the relevant academic literature to support ideas and issues discussed. The range of academic sources such as texts and journals to support your arguments and comments.

5.    Any reference to authors and other writers shall be quoted with due acknowledgement in your assignment report using the Harvard Referencing System. For details of Harvard referencing style refer the student’s hand book page 46-47 section7.2.

6.    This is an individual assignment and carries a 50 Percent  of the module grade.

7.    This assignment follows a  reportformatand must be original and creative. An analytical piece of work is required. The use of ‘cut and paste’ approach will be penalized. It must be presented in a structured manner, with appropriate cover page, content page, introduction, body (with appropriate heading / sub-headings), conclusion, references, page numbered and any required appendices.

8.    Your essay should be word processed and professionally presented. The length of your essay should be between 2500 words (+/- 10%), presented in text of font size 12 with 1.5-line spacing. Please state the exact word count at the end of the assignment.

9.    The cover page should be attached with the assignment and uploaded through MOVE (on-line. Name of the student, The Programme, Module Title, Assignment Title and number of words must be reflected on the cover sheet.

10.           All assignments must be adhered strictly to the deadlines specified by Majan College. Failure to hand in the assignment for any reason and without prior approval and a valid written extension from the module tutor will not be marked and will be awarded a grade G (0) irrespective of the quality of the work. See Student handbook page 16-17section 4.4.

11.           Unacknowledged use of work of others (plagiarism) is regarded as a dishonest practice and will be will be penalized. See the penalties in the student’s handbook page 35-36 section 5.8.

Additional Guidelines

·       The Assignment Submission link on MOVE will be open, a week ahead of the submission date.

·       You can submit your assignment multiple times, till the submission deadline. Note that Turnitin could take upto 24 hours to produce similarity reports for submissions.

·       The last submission, within the deadline, will be considered as your final submission.

·       Assignments should be submitted by 6pm on the day of the deadline. There is a grace period until midnight to allow for any technical difficulties, but anyassignments submitted after this will be counted as late. Technical problems will not be accepted as an excuse for submitting after the day of the deadline.

·       You are required to tick to confirm the statement: “I confirm that this assignment is my own and all sources have been    acknowledged. I understand that the use of other people’s work or ideas without acknowledgement is plagiarism and could result in failing the assignment”. You will not be able to submit the assignment without ticking this box.

·       In a case of group work, it is recommended that the group should identify a leader who can be responsible for uploading theassignment on Turnitin and to share the feedback received from lecturers with the group members.

·       The similarity percentage of your final submission will be one of the factors considered, for assessing the originality of your assignment. However, the decision to report an assignment for plagiarism is taken by the Lecturers, who mark your assignment.

·       The Lecturers will consider a number of factors such as Assignment type, Part of the assignment where similarity occurs, Nature of similarity etc., alongwith the similarity percentage of your assignment, to assess the originality of your assignment. Therefore, similarity percentage would not be accepted as a basis for disputing academic judgments regarding plagiarism.

·       Note that the similarity percentage of your submission can change till the submission deadline, if the submissions of other students have similarity to your assignment. Therefore, the similarity percentages are not final, till the assignment submission is closed.

 To get solution visit our website www.arabessay.com