SCHOOL OF ACCOUNTING

ACCT5908
Auditing and Assurance Services

Team assignment details
The assignment is to be based on JB Hi-Fi Limited (ASX code JBH) and is to be handed to your lecturer at the commencement of seminar 10.
The assignment must be prepared in accordance with the requirements as specified below and as indicated in the Course Outline.
This assignment is to be completed in teams of five students. All students in a team must be from the same seminar.
The aim of the group assignment is to test students’ ability to integrate skills learnt in
Auditing and Assurance Services to analyse a real company from the auditor’s perspective and within the framework of auditing standards. The successful completion of this assignment requires extensive research on JBH’s internal and external environments, operations, strategies and analysis of financial information.
Students are expected to demonstrate their ability to critically evaluate various pieces of information and apply analytical skills to critically evaluate potential audit risks.
An important aspect of the assignment will be to demonstrate your ability to present written reports in a professional manner, addressing key formatting requirements as specified in Question 4 below.

Required
You are a part of the team responsible for planning the JBH audit engagement for the year ending 30 June 2015. You have been assigned to gather relevant background information and prepare a report for the JBH Audit Committee. Your report must address the following issues.

1.

In relation to JBH, provide a detailed description of the following:
 What are the principal sources of JBH’s revenue and what does JBH produce?  How are it’s operations conducted?
 Who are its primary competitors and what is JBH’s market share?
 Which particular regulations affect its operations?
[4 marks]

2.

A commonly used tool to assist in conducting strategic analysis decomposes the client’s business environment into the following four spheres of influence Political
Economic
Social
Technical
Prepare a PEST analysis detailing the kinds of factors that may have a material impact on the business of JBH. Three