This assignment is to based on Allegiance Coal Limited (ASX code-AGM). Assume that the audit for...

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This assignment is to based on Allegiance Coal Limited (ASX code-AGM).

Assume that the audit for Allegiance Coal Limited (Allegiance), a mining company, will be coming up for tender. You and your colleagues are required to prepare a client evaluation report based on your research for the senior partners of your audit firm. Your report should provide preliminary information as to whether or not the audit firm should consider tendering for the audit of Allegiance.

You should conduct extensive research and perform an analysis of the annual report of Allegiance for the year ended 30 June 2017 and any other relevant information that you have obtained (Hint: Company’s website and Business news).

In your report, you must address the following issues:

1. Provide an overview of the client’s operations and industry in which it operates. (4 marks)

2. What are the specific reporting requirements (standards/laws/regulations) for mining companies? You need to list and briefly describe FOUR (4) standards/laws or regulations. (8 marks)

3. Identify and explain FOUR (4) significant business risks for Allegiance. You also need to describe how these risks may lead to potential material misstatements in the financial report. (8 marks)

4. Using the Allegiance 2017 annual report, identify and discuss Three (3) areas/accounts of concern. Why do you consider the chosen areas/accounts to be ‘risky’? (6 marks)

5. Complete the below table

6. Based on your understanding of the client and assessment of the client’s business and audit risks, would you undertake the audit? Why? (4 marks)

The assignment is to be submitted via LMS through Turnitin, as per the Subject Learning Guide.

NOTE: I would like you to help me with question 3 and 4 ONLY.

tae_636602450436496081_117324_1.docx

Abr Writing · Accepted Answer

There are several methods to define risk management framework which will provide a process for defining and management of related risk. Wipplinger, E. (2007). Philippe Jorion
The first step in the risk management process is categorization, it provides a guide to identify risk and categorize in risk management process it also identifies consequences and impact of risk on organizational assets which covers several functions of given organization.
The second step in risk management process is a selection of appropriate techniques framework or documents which provide the guidelines for privacy and security in order to implement the controls which are important to protect the organization and the system while commiserating the risk to certain organizational assets corporations and individuals. Wang, S. Q., Dulaimi, M. F., & Aguria, M. Y. (2004).
The third major step in the risk management process is the implementation of identified Framework within the purview of the organization, it is very important for the risk consultancy firm to implement the appropriate technique in the system. Implementation is the most difficult part in the risk management system because implementation handles all the practical and on ground problems associated with the risk management framework and they have to make it understandable to the stakeholders of a client who sometimes may question the validity of the framework. Wipplinger, E. (2007). Philippe Jorion
The fourth step in the risk management process is the assessment of the implementation of risk management framework.  Once the risk management Framework is implemented it is important to assess its impact on the organization for assessment various quantitative and qualitative mattresses are defined which measures the level of risk associated with the operations of the organization.  Level of risk in an organization is assessed before and after the implementation of risk management Framework in order to identify that whether the framework will provide a substantial impact on organizational risk in the future. Wang, S. Q., Dulaimi, M. F., & Aguria, M. Y. (2004).

This assignment is to based on Allegiance Coal Limited (ASX code-AGM). Assume that the audit for Allegiance Coal Limited ( Allegiance ), a mining company, will be coming up for tender. You and your...

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