When sub-standard audits are performed

| March 17, 2019

When sub-standard audits are performed and reasonable assurance cannot be

reliably ascertained, there are consequential risks for key stakeholders, including

auditors. In light of this, perform the following key assignment tasks:

1. Perform a key stakeholder analysis for an ASX listed company. Explain how the

key stakeholders would be affected if material misstatements are not properly

identified, disclosed or adjusted for in the finalised financial statements. What

are the key risks posed to each key stakeholder you have identified? (300 – 400


2. Consider the concepts of independence and “whistleblowing” in relation to

auditors. How do these concepts relate to the public interest requirements

mentioned in the APES 110 Code of Ethics for Professional Accountants

document? (300 – 400 words)

3. What lessons can auditors learn from the Enron scandal and in particular from

the behaviour of Arthur Andersen? (750 – 900 words)

4. With reference to the APES 110 Code of Ethics for Professional Accountants

document and the ASIC website, research “audit quality” and discuss what

auditors need to do to address the “warning” noted in the statement made by

Greg Medcraft above. (

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