Auditing, Assurance & Services Individual Assignment Research Question

Auditor's Report

The new auditing standard ASA701 Communicating Key Audit Matters in the Independent Auditor's Report is developed in the wake of the global financial crisis. This development is in response to calls from shareholders to know more about the companies they invest in. Further, investors have also requested earlier warnings of potential issues that may exist with respect to an entity's ability to continue as a Going Concern which resulted in the revision of ASA 570 (ISA 570) Going Concern. You are required to research the auditing issues surrounding the collapse of ABC Learning Centre. Further you are required to relate the issues that led to the development of the new auditing standard ASA701 Communicating Key Audit Mattersin the Independent Auditor's Report. As a result of your research, provide the key audit matters (you need to be specific what key audit matters are) which would be required to be disclosed in the audit report to the members of ABC Learning Centre if the new auditing standard ASA701 (ISA 701) had applied in the period leading up to the collapse of ABC Learning Centre and evaluate the usefulness of the ASA701 (ISA 701).

Required - Using reference materials available on the internet, research the topic and prepare a report, fully referenced and up to 2,500 words (assignment in excess of 2,500 words will be penalized). Minimum of 8 academic references is required.