Transcribed Image Text
In: AccountingYou a member of the audit team at Miller Yates Howarth (MYH), anaccounting firm with...You a member of the audit team at Miller Yates Howarth (MYH), anaccounting firm with offices throughout the major regional centresof NSW and Queensland. Although a medium sized firm by nationalstandards, MYH is the second largest regional accounting firm inAustralia. Most of MYH’s audit clients are in the agriculture,mining, manufacturing and property industries. All those industriesare currently under pressure, either from a downturn in commodityprices or fierce competition from overseas competitors. MYH havenow been appointed auditors of a community bank. Two auditdirectors have previous experience auditing in the banking sectorand need to raise the awareness of staff with respect to thegovernance issues that have recently impacted the banking sector.Question 1 (7%) Required: You have been asked to: read auditstandard ASA315 focusing on audit responsibility with respect toclient governance, read the web page on the ASIC report on theCommonwealth bank which details the governance issues raised byASIC (http://www.apra.gov.au/MediaReleases/Pages/18_17.aspx), andprepare a report that: summarises and justifies the auditor’sresponsibility to review the governance of an audit client, andIncludes a table for use in the audit which explains the impact ofeach of the ASIC identified Commonwealth Bank governance issues onaudit risk. The table should further explain why each of the ASICrecommendations would reduce audit risk. The template below shouldbe used. Issue Impact on raising audit risk RecommendationReduction in audit risk because of the recommendation