Assignment:
The group assignment aims to:
1. Give students an understanding of real life auditing issues
2. Help students understand the link between theory and practice; and
3. Foster students' research, team-working, critical analysis and written communication skills.
You should give careful consideration to the selection of members comprising the group. By the end of week 3, all groups must be formed and groups should provide the names of members to the lecturer-in-charge during lecture period. It is very important for all members to take an active part in completing the assignment and make an equal contribution.
Student from groups must make a brief presentation of not more than 5 minutes' duration in week 4 classes (preferably during tutorials) about the reason behind choosing a company, and allocation of work between the group members, and the plan of the research. In week 7 classes, student must make another brief presentation (less than 10 minutes' duration) about the group's work in progress that address at least 5 out of 10 required points to be made. The student must make a final presentation about the final findings in week 11 or week 12. The assessment marks for any student who fail to form a group or present the findings in time will be deducted from each of the progress check presentations. In other words, the maximum marks for any group assignment submitted without making any prior presentations will be only 14%. Each student should also complete the "Peer Evaluation of Team Members" sheet and hand it in to the lecturer-in-charge.
An online assignment submission link (Turnitin) will be made available in LEO. Only one member of the same group should submit the assignment. The assignment must be submitted in Word document. The assignment marker will then return the marked assignment in the "assignment feedback" drop-box in LEO.
In consultation with the Lecturer-In-Charge, students are required to examine a corporate scandal that involved improper accounting practices and the role of auditors from the list provided below (if you would like to examine a case that is not listed here, please obtain consent of the lecturer-in-charge. You are expected to cite at least five (8) acceptable sources. If you are not clear what constitutes an acceptable source, please consult the Lecturer-In-Charge.
Parmalat Storm Financial
Xerox AWA
WorldCom Tyco
Fannie Mae Merck
OneTel Nortel Networks
Clive Peeters Phospagenic
Opes Prime Harris Scarfe
Lehman Brothers
You are required to write a business report addressing the questions. Your report should include an introduction, conclusion, appropriate headings, and diagrams or graphs where appropriate.
1. Describe the company, type, size and location of business.
2. What was the accounting scandal? How did they do it? Who was involved? When it did take place? Who were the stakeholders in this situation (both inside and outside the firm)
3. What was the impact of this violation on the stakeholder?
4. Describe what accounting principle (s) they violated.
5. How did the misdeed affect the share price and the company overall?
6. Dollar value of the scandal.
7. What was the role of the auditor in this situation?
8. How did the auditor's involvement impact the situation?
9. What are the latest developments or current status (prison sentences, charges, etc?)
10. What were the lessons learned?