H16026 Unit Title Audit, Assurance and Compliance Assessment Answers


Assessment Title:

Executive Compensation, Independence and Covid-19 Impact on auditing

Students are required to explain the executive qualification, experience, compensation from your 10 ASX listed companies and effect of COVID-19 from your selected company

Required Task:

Part A: (25 marks)

Listed companies are required to make certain disclosures in their annual reports about the compensation paid to their top executives. C ne reason for this is to help interested stakeholders assess the performance of executives. It also helps executives and companies set appropriate compensation levels, based on what other companies in the same industry and/or of the same size are paying their executives. These disclosures are audited.


Obtain the annual reports of 10 listed Australian companies in the same industry from the Year 2020. (Hint: See www.asx.com.au for a list of companies on the ASX, industry membership and links to company websites where you can download annual reports.) Extract the information on executive remuneration and describe the data using graphs and tables. Write a report addressing the following questions (justify your responses by referring to the data where appropriate).

  1. How are the executives paid (cash, bonuses )?
  2. Discuss details about executive qualification, experiences and

3.                Which companies’ executives are paid the most and what is the range of pay?

  1. Which companies’ executives’ pay is most linked to the company’s profit and/or share price performance?

(Explain any assumptions you have to make.)

  1. Overall, what do you conclude about how Australian company executives are paid and how clearly the

compensation data is reported?

Part B: (10 marks)

Explain Auditing in times of social distancing: the efiect of COVID-19 on auditing quality proposed by Australian Securities and Investment Commission (ASIC) in the following situations:

  1. What should be the focus areas for auditors under COVID-19 conditions?
  2. Should audit fees be reduced when reviewing other cost saving initiatives?
  3. Should an auditor delay their opinion until a limitation or uncertainty is resolved?
  4. What should be influence of CiCVID-19 and going concern assessment?

The assignment structure must be as follows:
Holmes Institute Assignment Cover Sheet — Full Name, Student , Contribution.

  1. Executive Summary
    1. The Executive summary should be concise and not involve too much

b.                It should make commentary on the main points only and follow the sequence of the report.

  1. Write the Executive Summary afier the reR••‹ is co•RIeted, and once you have an overview of the whole text.
  1. The Executive Summary appears on the first page of the

4.          Contents Page – This needs to show a logical listing of all the sub-headings of the report’s contents. Note this is excluded from the total word count.

  1. Introduction — A short paragraph which includes background, scope and the main points raised in order ofimportance. There should be a brief conclusion statement at the end of the Introduction.

  1. Main Body Paragraphs with numbered sub-headings — Detailed information which elaborates on the main points raised in the Each paragraph should begin with a clear topic sentence, then supporting

sentences with facts and evidence obtained from research and finish with a concluding sentence at the end.

  1. Conclusion — A logical and coherent evaluation based on a thorough and an objective assessment of the

Research performed.

  1. Appendices — Include any additional explanatory information which is supplementary and/ or graphical to help communicate the main ideas made in the Refer to the appendices in the main body paragraphs, as and where appropriate. (Note this is excluded from the total word count.