Could you please help with question 4 and 5
1. You are a part of the team responsible for planning the Metcash (parent and the
consolidated economic entity) audit engagement for 2017. You have been assigned
to gather relevant background information and prepare a report for a meeting with
your audit partner and audit managers. Your report must address the following
issues:
a. What are the areas in which Metcash conducts its operations?
b. Which particular laws/regulations (other than financial related categories
which include legislations such as: Corporation Act 2001, Australian taxation
laws, etc.) affect its operations? You need to identify at least FIVE
laws/regulations.
c. Who are its primary competitors?
[6+5+2= 13 marks]
2. Identify and explain FIVE significant business risk factors that the auditor needs to
consider for the Metcash group engagement.
[5 marks]
3. Identify at least FOUR accounts susceptible to misappropriation or fraudulent
financial reporting within the Metcash Group and explain why. Your answers should
be reflective of your in-depth understanding of Metcash Group and its environment.
[12 marks]
4. With specific reference to Metcash’s corporate governance arrangements, you need
to assess the likelihood of the potential reliance that could be placed on the overall
control environment. Your conclusion should be supported by at least FIVE factors.
[5 marks]
5.Recently Metcash showed its intentions to acquire Woolworth’s Home Timber and
Hardware business for about $250 million. The Australian Competition and
Consumer Commission (ACCC) have also given approval to bid for Home Timber
and Hardware business. How will the development of the proposed acquisition of
Woolworth’s Home Timber and Hardware business affect your 2017audit plan for
Metcash
