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Assessment item 2

Case Study and Report


Value: 10%
Due date: 21-Aug-2016
Return date: 13-Sep-2016
Length: 2000 words
Submission method options
Alternative submission method
Task
Question 1 (5%)
Case:
Battersby and Associates Chartered Accountants is a successful mid-tier accounting firm with a large
range of clients across Australia. During the 2015 financial year Battersby and Associates gained a new
client, Medical Services Holdings Group (MSHG), which owns 100 per cent of the following entities:

Green Grass Hospital, a private hospital group

Green Gardens Nursing Home Pty Ltd, a private nursing home

Complete Cancer Care Limited (CCCL), a private oncology clinic that specialises in the treatment
of cancer.

Year end for all MSHG entities is 30th June.


CCCL owns two relatively old linear accelerators used in radiation therapy. Recently radiographers using
these linear accelerators have raised concerns that they have adverse radiation impacts on patients.
The CEO of CCCL, Adam Chase, has approached Belinda Battersby, the audit partner responsible for the
financial report audit, about undertaking an engagement in respect of the linear accelerators. Adam has
requested Belinda provide an opinion that the linear accelerators are fit for use. Adam pointed out that the
CCCL audit is up for tender the following year and suggested that Battersby and Associates might like to
take on the linear accelerators engagement without charging a fee as a gesture of goodwill.
Source: Adapted from the CA Programs Audit and Assurance exam, December 2008.
Required
What should Belinda do? Use the Code of Ethics for Professional Accountants and the American
Accounting Association (AAA) Model to help consider your response to this question.
The best way to present your answer is in a table as below:
American Accounting Association Model
1. Determine the facts
2. Define the ethical issues
3. Identify the major principles, rules and values
4. Specify the alternatives
5. Compare values and alternatives
6. Assess the consequences
7. Make your decision

Decision making process


The facts are ...

Question 2 (5%)
Good corporate governance reduces the audit risk. Independent directors have been recognised as
critical to good corporate governance.
Task
Prepare a report for your fellow students that:

describes the current Australian recommendations for the inclusion of independent directors in a
board of directors,

evaluates the continuing need for independent directors, and

identifies barriers to the effectiveness of the role of independent directors.

Rationale
This assessment has been designed to assess your ability to:

Be able to explain and critically evaluate influences on audit and assurance services including:
Australian and international professional standards, statutory and common laws, regulatory
bodies, and public expectations within a global market;

Be able to exercise critical and reflective judgment and appreciate the value of ethical practice.

Marking criteria
Question 1

Criteria
Use of critical and
reflective judgment
in ethical practice in
the application of the
AAA guide (4.5
Marks).

HD
Distinction
Credit
Complex and detailed
Logical application of the Minor problems with the
application of the ethical ethical decision guide
application of the ethical
decision guide
demonstrating coherent decision guide. There are
demonstrating strong
critical and reflective
some relevant references
critical and reflective
thinking in the use of the to ethical and auditing
thinking the use of the
guide. There are a number standards.
guide. There are extensive of relevant references to
relevant references to
ethical and auditing
ethical and auditing
standards.
standards.
Professional
Work contains distinct
Work contains distinct
Minor spelling, grammar
communication
understandable statements understandable statements and punctuation errors.
(Note: you are
with no errors. There is a with minimal errors.
Work shows evidence of
required to space
sophisticated use of
proofreading.
between paragraphs; language.
Answer is well organised. Well-structured with one
use Arial 10pt or
Extremely well organised. Content is structured in a main idea or argument
TNR 12 pt; use 1.5 Content is structured in a manner that facilitates the provided per paragraph
or double line
manner that facilitates the readers understanding. arguments/ideas.
spacing)
readers understanding.
(.25 Marks).
Appropriate
Used four or more
Used two or more
Used one or more
resources and correct sources.
sources.
sources.
referencing
All work has been
All work has been
All work has been
(.25 Marks)
referenced correctly as
referenced correctly as
referenced within the
per APA (6th edn)
per APA (6th edn)
body of the answer and in
requirements.
requirements.
the reference list, with
some omissions or errors
in terms.

Question 2

Pass
Ethical decision
guide partially
applied including
some references to
ethical and auditing
standards.

Some spelling,
grammar and
punctuation errors
found but the work
is readable and
structured.
Work may include
too many ideas in
one
paragraph.
No additional
sources other than
the text used.
Others work is not
always
acknowledged and
there are a number
of errors or noncompliance with the
APA (6th edn).

Criteria
Description of the
current Australian
recommendations
for the inclusion of
independent
directors in a board
of directors. (1
Mark).

HD
Distinction
Credit
Pass
A complete
A complete description A description of the
Some attempt to describe
description of the
of the current Australian current Australian
the current Australian
current Australian recommendations for the recommendations for the recommendations for the
recommendations
inclusion of independent inclusion of independent inclusion of independent
for the inclusion of directors in a board of directors in a board of directors in a board of
independent
directors.
directors.
directors.
directors in a board
of directors. In
addition it may refer
to recommendations
from international
jurisdictions that are
relevant to the
Australian context.
Evaluation of the
A complex and
A logical attempt to
A good attempt to
Some attempt to explain the
continuing need for highly detailed
evaluate the need for
explain the need for
need for independent
independent
evaluation of the
independent directors is independent directors is directors is presented.
directors
need for independent presented.
presented.
(2 Marks).
directors is
presented.
Identification of the Identification of the Identification of many A number of the barriers Some attempt to identify the
barriers to the role of range of barriers to of the barriers to the role to the role of
barriers to the role of
independent
the role of
of independent directors independent directors
independent directors is
directors (1 Mark). independent
is presented
are presented.
presented.
directors is
demonstrating a good
presented
understanding of the
demonstrating a
issues.
deep understanding
of the issues.
Professional
Work is in a report Work is in a report
Work is in a report
Some spelling, grammar and
communication
format and contains format and contains
format. There are minor punctuation errors found but
using a business
distinct
distinct understandable spelling, grammar and the work is readable and
report format.
understandable
statements with minimal punctuation errors. Work structured. Some attempt at
(Note: you are
statements with no errors.
shows evidence of
a business report format.
required to space
errors. There is a
proofreading.
Work may include
between paragraphs; sophisticated use of Answer is well
Well-structured with one too many ideas in one
use Arial 10pt or
language.
organised.
main idea or argument paragraph.
TNR 12 pt; use 1.5 Extremely well
Content is structured in provided per paragraph
or double line
organised.
a manner that facilitates arguments/ideas.
spacing) (.5 Mark). Content is structured the readers
in a manner that
understanding.
facilitates the
readers
understanding.
Appropriate
Used four or more Used two or more
Used one or more
No additional sources
resources and
sources.
sources.
sources.
(other than the textbook)
correct referencing All work has been All work has been
All work has been
used.
(.5 Mark).
referenced correctly referenced correctly as referenced within the
Others work is not always
as per APA (6th edn) per APA (6th edn)
body of the answer and acknowledged and there are
requirements.
requirements.
in the reference list, with a number of errors or nonsome omissions or
compliance with the APA
errors in terms.
(6th edn).

Presentation

The report should follow a statndard business report format, an example of which is included in the
Resources section of the subject Interact site.
Requirements
Assignments must be submitted through Turnitin. It is recommended that your name, student
ID and page number be included in the header or footer of every page of the assignment. Further details
about submission are provided in Appendix 1.

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