wa Task 1 eae eee ee ee ee A cliont, Danny Featherstone has just completed his fist year of trading as a private limited company in the sportswear industry. He has requested advice on a number of issues relating to assurance and intemal controls. You are required to prepare a report that must: define the term assurance. describe the concept of reasonable assurance. explain the assurance process. ‘compare and contrast the responsibilities of the different stakeholders involved in an ‘assurance engagement. identify the need for organisations of having effective systems of control. discuss the need for the main areas of a business that need effective control systems. describe the components of intemal control in both manuel and computerised environments, explain how internal controls are evaluated and conclusions drawn. ities To gain a merit, your report must: * analyse the possible purposes and outcomes obtained from different assurance engagements. ‘+ analyse how intemal controls mitigate risk To gain a distinction, your report must:+ 238088 the need to pon Judgement "=" PA” asurncescbtes wih peaesenalsepcien and pessoal LOH Ac 14.9.9.43,4, a aac 4.1, 108 23,24 Mt Propane Taaiag SPpntoe ined your dearer. Your ne manager hes requested hat you Engagement of Mendbocks forthe apprenion assist emunen completes res commannandeok souk! hep the apprentice understand how wo gathredence when completing an assurance engeyemerr \ ‘Your handbook must; {Seuss he reasons for preparing documentaten relating to assrance engagemants, * describe te diterence stages rqured to gather evidence won completing wn asarance ‘engagement {J fevew aiferent methods of obaning evidence for assurance engagement * discuss issues arising from the gathering of assurance evidence a needs fort 10 senior coleagues Extension activites To gain mert, your handbook must: ‘+ analyse the need for witan contmation of representations rom management. assurance evidence To gain acistncton, your handbook must: + compare and contrast herby of diferent types of assurance evidence Los.Ac 3.4,32,33, 34,31, 301 TaskYour line manager is to deliver departmental training on the need for professional ethics when completing assurance engagements. You have been asked to draft the presentation slides and prepare speaker notes that your line manager can use in the training. Your presentation slides and speaker notes must: expiain the role of professional ethics. analyse how the principles of professional behaviour protect the public and fellow professionals. explain the threats to fundamental ethical principles. Extension activities To gain a merit, your presentation slides and speaker notes must: «evaluate the importance of confidentiality when completing assurance engagemen's LO4 AC 4.1, 4.2, 4.3, 4M1Principles. | Indicative Content 1. Understand the concept of assurance Definition of the concept of assurance. Users of assurance reports both internal and external. Assurance principles — scope, limitations, nature and purpos®- Assurance techniques — assurance strategy and assignments: Assurance processes — including: © Engagement acquisition © Risk assessment © Acceptance of assurance engagementot mt risk, 2. Understand the nature and Scope and Planning Completion of tra Evidence sou ae : mamponents of intomal conser reath Computerised and manual systems {he control environment, ati 8 and intemal audit. S Lavance tiie componones feet ek odo herent ak, cont ron detection risk). £ Legal responsibitties an liability {Methods of minimising eke + Audit engages snort completion of en assuranen onset Review and reporting, 3 are as liability of internal and extern: Impact of legal requirements responses and toby Tolan to key engagorients ents assurance engagem: 4. Understand the need for professional ethics when completing rance activities, + Role of ethical codes in relation ae * Rules basod and principle based advocacy, review, management, advocacy. fundamental ethical principles — sal-interest, self-review, © Threats to. familarty and intimidaion. a