Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Total number of word 2500 maximum.

TASK 1

Critically evaluate the risk-based approach to external audit with particular reference to the audit of Home Retail Group plc.

Note:

You should give exs of how you might collect evidence and assess the degree of business risk(obtaining an understanding of the entity and its environment and assessing the risks of a material statement) in the 2011 audit of the company and factors affecting the company’s ‘control environment’. 

Task 2

Identify those features of Home Retail Group plc’s results fir 2009-2011 which might indicate to you as the external auditor that the company was facing going concern problems.

Note:

Use ratio to assess areas of audit risk analytically

Ratio exs:

Operating Profit margin ( % ), Operating Profit/ Total assets  ( % ), Return on equity  (%) EPS  (p.), Interest cover ( times ), Gearing ratio(%), Current ratio (: 1 ), Stock holding(days ) Cash operating effic.(%), Free cash flow (£M.)                     

Task 3

Identify any qualitative factors or information in the annual reports and accounts for Home Retail Group plc for 2011, including the report if the audit committee, that you as the external auditor would consider that might suggest that the company would be able to continue in business for the foreseeable future.

Note: Report of the audit committee e.g Movement on share, londonstockexchange.com

Task 4

Briefly outline the requirements of the UK version of ISA 700/ 750/ 706 and discuss the factors which would influence you as the external auditor in forming an opinion on the financial statements of Home Retail Group plc for 2011.

Note:

Indicate briefly the form that your opinion might take including any emphasis of matters paragraph that you may consider making in relation to the appropriateness of the going concern basis.

Links for Home Retail Group plc:

http://www.homeretailgroup.com/ar/2011/_downloads/homeretail_annual_report_2011.pdf

Pages to take into consideration:

p54 Consolidated income statement

p56 consolidated balance sheet

p58 consolidated statement of cash flows

p59 analysis of net cash/(debt)

P53 Independent auditors’ report to the members of Home Retail Group plc

P40,41,42 Corporate governance report continued

Home Retail Group News: http://www.homeretailgroup.com/news-and-media/news.aspx?smltype=2105&smlbus=1690&article=2773

Home Retail: world’s worst share buy-back: http://www.guardian.co.uk/business/nils-pratley-on-finance/2011/oct/19/home-retail-argos-worlds-worst-share-buyback

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91797

Have any Question? 


Related Questions in Accounting Basics

Accounting discussion questionbulldiscuss the advantages of

Accounting Discussion Question • Discuss the advantages of understanding accounting as it relates to your current or future position. (Consider careers in management, sales, business operations, finance, and business own ...

Payrolllocate a payroll processing company you may either

Payroll Locate a payroll processing company. You may either contact one in person, by telephone, or conduct an Internet search. Write a brief report describing the advantages and disadvantages of using a payroll processi ...

Assignmentthe company that i chose to research came to me

Assignment The company that I chose to research came to me on the way home from work this week while sitting in traffic. A string of several ads came on the radio and got a little frustrated that my Christmas tunes were ...

1identify the impact on operating cash flows increase or

1. Identify the impact on operating cash flows (increase or decrease) for changes in inventory levels (increase or decrease) for both companies for each of the three most recent years. Use Excel for your analysis. See Ch ...

Accounting systems and assurance assessment internal

Accounting Systems and Assurance Assessment: Internal Control and information quality Accounting students learn how to process, analyse and use accounting information. It is also necessary to learn what contributes to th ...

Question 1jian rarimbal and dan are considering setting up

Question 1: Jian, Rarimbal and Dan are considering setting up a company providing 2 hour hot air balloon trips for groups of 10 tourists at a time. The trips will include some food and drink for the tourists. They have d ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference) "earnings-based valuation" please respond to the following: • Create an argument supporting that ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "criminal fraud versus civil fraud and taxation of u.s. businesses operating abroad" please respon ...

Company name is chevronapply ifrs 1 adopting ifrs and rev

Company name is Chevron Apply IFRS 1, "Adopting IFRS" and "Rev Rec" to your U.S. company used in the "Comparison Project" for the final effort in class which is to develop a plan for the transition to both IFRS and Rev R ...

Ace lawn care module - mini practice problemjim graham

Ace Lawn Care Module - Mini Practice Problem Jim Graham started his career mowing lawns for neighbors while he was in junior high school. Jim worked summers for the local golf course while he was in high school and now t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro