Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor and Seminar leader
Dominic Soh
Contact via accg340@mq.edu.au
E4A 324
Friday 10am - 12pm
Teaching Administrator
Claudia Chau
Seminar leader
Fiona Foster
Seminar leader
May Vargas
Seminar leader
Samyak Acharya
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Credit points |
Credit points
3
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Prerequisites |
Prerequisites
39cp including [(ACCG308(P) or ACCG310(P)) and (ACCG250(P) or ACCG251(P))]
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
This unit examines auditing and assurance and the concepts which underlie these services. The unit focuses on financial statement audits conducted under the provisions of the Corporations Act 2001, although other assurance services will also be examined within the unit. Students develop an understanding of the key aspects of an audit and judgements involved in identifying, analysing and responding to specific audit risks typically within case based scenarios. The ability to identify and gather sufficient, appropriate audit evidence and to form appropriate audit conclusions based on the evaluation of that evidence will also be developed. Students in this unit will develop professional judgement and decision making skills and graduate capabilities of critical, analytical and integrative thinking and problem solving. These are valuable skills beyond the specific area of auditing.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
Name | Weighting | Due |
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Assessed coursework | 20% | Weeks 3-12 |
Class test | 20% | 18 September 2014 |
Case study | 20% | 20 October and 27 October 2014 |
Final Examination | 40% | University Examination Period |
Due: Weeks 3-12
Weighting: 20%
Students are required to complete regular activities consisting of homework questions and quizzes. Details on homework questions and quiz dates will be provided in the Weekly Seminar Guide and Unit Assessment Guide respectively. The purpose of these activities is to encourage students to actively engage with the material covered in the Unit and to provide students with timely feedback on their performance regularly throughout the session.
Criteria and standards
Homework submissions will be marked on the basis of original effort. The marking criteria to be applied to homework submissions is provided in the Unit Assessment Guide available on iLearn. Students should note, in particular, that zero (0) marks will be awarded for non-submission, late submission, submission of an incorrect file, or a non-original submission, including submission of work that bears close resemblance to response guides from prior sessions or from the textbook publisher.
Every multiple choice question in each quiz will have only one (1) correct answer.
Submission
Submission is to be made on iLearn for all components of this assessment task.
Homework questions are to be submitted using Turnitin on iLearn via links available in the folder for each week that a homework submission is due. Resubmission of homework questions is allowed until the due date and time (before the start of each student's registered seminar). This will overwrite any prior submission, and only the final submission will be marked.
Links to each quiz will be available in the Weeks 3, 9 and 12 folders on iLearn. Quizzes may only be attempted once. Quizzes will be automatically submitted at the conclusion of the duration allowed for each quiz if a student does not submit their attempt within this time. Students must ensure that they have a stable internet connection and uninterrupted time to complete each quiz in one seating. Students are encouraged to complete the quiz using University computers if they are unable to ensure this from home.
Extensions and Penalties
No extensions will be granted.
Students who do not make a homework submission or complete a quiz by the due date will receive a mark of zero (0). Hardware or Internet connection issues are not acceptable as reasons for Disruption to Studies Notifications.
What is required to complete the unit satisfactorily
It is expected that students spend approximately 30-35 hours of study for the this assessment task.
Due: 18 September 2014
Weighting: 20%
A 50 minutes class test will be held on Thursday 18 September in Week 7. The test is worth 20% of the final assessment for this Unit. The test will consist of short answer and case based questions and will include material covered up to the week 6 seminar. The purpose of the class test is to provide students with practice on a summative assessment task for this Unit and provide feedback on their progress midway through the session.
Students will be allowed to take one double-sided A4 sheet of handwritten notes into the class test. Photocopied notes are not allowed. This sheet will be collected with the class test and will not be returned to students. Students are advised to take copies of their notes prior to the class test should they wish to retain a copy.
No calculators, dictionaries, books, or other materials or aids besides the one page of notes described above are permitted in the class test.
Criteria and standards
The class test will be marked based on the appropriate application of knowledge and skills to short answer and case based questions. Refer to the Unit Assessment Guide for standards applicable to the class test.
Submission
The class test will be held on Thursday 18 September in Week 7. Please note that there are no seminars scheduled in Week 7. Students MUST make themselves available on Thursday 18 September between 6 - 8pm to take the class test. The class test venue will be confirmed by Week 4. These details together with seating instructions will be provided to students closer to the date.
Extensions and Penalties
No extensions will be granted. Students who do not sit the class test on 18 September 2014 will be awarded a mark of zero (0) for the task, except for cases in which a Disruption to Studies Notification is made and approved. In these cases, a supplementary class test will be held in Week 8. Students are advised that once a determination is made on their Disruption to Studies Notification, they may not withdraw their notification and must submit themselves to partake in the supplementary class test. As per the Disruption to Studies Procedure, students are also advised that the time and date, deadline or format of the supplementary class test as a result of a Disruption to Studies Notification is not negotiable, and students must make themselves available to take the supplementary test. Failure to meet this requirement will result in a zero (0) mark being awarded. No further supplementary test will be provided.
What is required to complete the unit satisfactorily
Students will be expected to undertake self-study study activities in preparation for the class test. It is expected that students spend approximately 25 hours of study for the test. It is aimed to have the tests returned for review and feedback provided to students in the seminar following the class test. The class test is a confidential document, and class test scripts may not be retained by students.
Due: 20 October and 27 October 2014
Weighting: 20%
Students are required to complete a case study assignment worth 20% based on a real life company. The assignment will consist of group and individual components. Details regarding the nature of the assignment and its requirements will be made available on iLearn early in the session.
Criteria and standards
The properties on which the assessment task is will be assessed are as follows:
Refer to the Unit Assessment Guide for standards applicable to the group component and the grading rubric applicable to the individual component.
Submission
Submissions for the group component must be made to Turnitin on iLearn by 5pm on Monday 20 October 2014. Submissions for the individual component must be made to Turnitin on iLearn by 5pm on Monday 27 October 2014. Detailed submission instructions will be provided in the case study assignment brief that will be made available on iLearn early in the session. Guidance on how to submit a Turnitin assignment may be accessed from http://mq.edu.au/iLearn/student_info/assignments.htm#turnitin.
Extensions and Penalties
No extensions will be granted. Late case studies submissions will be accepted up to 96 hours after the respective deadlines for the group and individual components.
There will be a deduction of 25% of the total available marks made from the total awarded mark for each 24 hours period or part thereof that the submission is late (for example, 25 hours late in submission - 50% penalty). This penalty does not apply for cases in which a Disruption to Studies Notification is made and approved.
There will be a deduction of 25% of the total available marks made from the total awarded mark for the group component of the case study assignment for students who fail to form a group. It is the individual student’s responsibility to ensure that they are in a group early in the session. Further instructions on group formation will be provided in a seminar early in the session.
Without exception, any evidence of plagiarism discovered in submitted assignments will result in a detailed investigation and may result in a fail grade in the unit and exclusion from the University.
What is required to complete the unit satisfactorily
Students are expected to undertake independent and collaborative research, study and discussion for the case study. It is expected that students spend approximately 25 - 30 hours in completing this assessment task. It is aimed to have the case study marked and returned to students within 3 weeks after submission.
Due: University Examination Period
Weighting: 40%
A final examination is included as an assessment task for this unit to provide assurance that:
(i) learning in the unit belongs to the student; and
(ii) the student has attained the knowledge and skills tested in the exam.
The examination will cover topics across the entire course. Further information on the final exam will be provided in a seminar closer to the exam date.
Criteria and Standards
The final examination will be marked based on the appropriate application of knowledge and skills to short answer and case based questions. Refer to the Unit Assessment Guide for standards applicable to the final examination.
Final Examination conditions
A 2 hour final examination will be held during the University Examination period.
Students will be allowed to take one double-sided A4 sheet of handwritten notes into the final examination. Photocopies notes are not allowed. This sheet will be collected with the final examination and will not be returned to students. Students are advised to take copies of their notes prior to the final examination should they wish to retain a copy.
No calculators, dictionaries, books, or other materials or aids besides the one page of notes described above are permitted in the final examination.
Extensions and Penalties
Students who do not sit the final examination on the scheduled date and time specified in the University examination timetable will be awarded a mark of zero (0) for the final examination, except for cases in which a Disruption to Studies Notification is made and approved.
If a Supplementary Examination is granted as a result of the Disruption to Studies process the examination will be scheduled as per the Supplementary Examination timetable of the Faculty. The Supplementary Examination will be of the similar format as the final examination.
A student may withdraw their Disruption to Studies Notification up to the point where the determination of whether it is Serious and Unavoidable has been made. After this determination, the student may not withdraw the Disruption to Studies Notification and must submit themselves to partake in the Supplementary Examination. Students are advised to familiarise themselves with the University’s Disruption to Studies Policy available at http://mq.edu.au/policy/docs/disruption_studies/policy.html.
What is required to complete the unit satisfactorily
Students must pass the final exam to receive a passing grade in this unit. Students are expected to spend approximately 40 hours of study for the final exam.
Students who wish to obtain feedback on the final exam should refer to guidelines relating to the Grade Review process available on the web page of the Faculty of Business and Economics.
Classes
The unit requires 3 hours of face-to-face teaching per week in a 3 hour seminar. The seminar will provide a general overview of the topics and highlight key concepts and techniques for specificed topics in each week, as well as facilitate further investigation and discussion of the concepts and their application in practical cases.
The timetable for classes can be found on the University web site at: http://www.timetables.mq.edu.au/
Changes to student timetables may only be made through eStudent. Students wishing to change their allocated seminar should log onto to eStudent and enrol in a seminar where there is a vacancy. Any question of an administrative nature in relation to seminar allocations should be addressed to accg340@mq.edu.au. Student enrolments must be finalised by the end of Week 1, Friday 8 August 2014. No further changes may be made after this date.
Prizes
Details of prizes awarded by the Faculty of Business and Economics are available at: http://www.businessandeconomics.mq.edu.au/undergraduate_degrees/prizes_scholarships
Required and Recommended Texts and/or Materials
The required texts for the unit, which are available from the Co-op Bookshop are as follows:
Martinov-Bennie, N., Roebuck, P. and Soh, D. (2014) Auditing and Assurance: A Case Studies Approach, 6th Edition, LexisNexis Butterworths, Sydney, Australia. [http://www.coop.com.au/bookshop/show/auditing-and-assurance-a-case-studies-approach-martinov-roebuck-soh/9780409334180/?gclid=CMezkuy317wCFUNvvAodm1oA2w]
Leung P., Coram, P., Cooper, B. and Richardson, P. (2011) Modern Auditing & Assurance Services, 5th Edition, John Wiley & Sons Australia Ltd, Brisbane, Australia. [Also available for purchase from: http://www.wileydirect.com.au/buy/modern-auditing-assurance-services-5th-edition/]
Additional required readings will also be made available on iLearn.
Students are also expected to read relevant standards and guidance which are available online at http://www.auasb.gov.au (ASAs, ASQC, ASRS, and AGS) and http//www.apesb.org.au (APES). These are also contained in the CPA Australia and ICAA Auditing Handbook that are available for purchase as follows:
The Institute of Chartered Accountants Australia (2014) Auditing, Assurance and Ethics Handbook 2014, John Wiley & Sons Australia Ltd, Brisbane, Australia.
CPA Australia (2013) Auditing, Assurance and Ethics Handbook 2013, Pearson, Sydney, Australia
The following texts/resources may be useful as additional references:
Gay, G. and Simnett, R. (2012) Auditing and Assurance Services in Australia, 5th edition, McGraw-Hill, Sydney, Australia.
Moroney, R., Campbell, F. and Hamilton, J. (2011) Auditing: A practical approach, 2nd Edition, John Wiley & Sons Australia Ltd, Brisbane, Australia. [Also available for purchase from: http://www.wileydirect.com.au/buy/auditing-practical-approach-2nd-edition/]
Arens, A., Best, P., Shailer, G., Fielder, B., Elder, R. and Beasley, M. (2011) Auditing, Assurance Services and Ethics in Australia: An Integrated Approach, 8th Edition, Pearson, Sydney, Australia.
CPA Australia (2014) Small Entities Audit Manual (SEAM), Available from: http://www.cpaaustralia.com.au/documents/seam-manual.pdf [Accessed 23 July 2014]
Technology Used and Required
Students will need access to a personal computer and the internet to obtain seminar slides, additional readings, assessment details and notices from the ACCG340 iLearn site, as well as to complete and make submissions for the assessment tasks in this Unit.
The iLearn site this unit can be found at: http://iLearn.mq.edu.au
You are strongly encouraged to regularly visit the website to check for important announcement and use it as a resource to enhance your learning experience.
What is required to complete this unit satisfactorily
In addition to the requirements outlined in the Assessment tasks section above, including the requirement to pass the final exam to achieve a passing grade in this unit, it is expected that students in this course are independent learners who assume personal responsibility for their learning and undertake a pro‐active approach to addressing any deficiencies in their understanding of the course material through independent research and inquiry and through consultations with peers and instructors as appropriate. A detailed learning approach is provided in the Weekly Seminar Guide available on iLearn.
Wk |
Topics |
Materials |
Std/Guid |
1 |
Course overview Introduction to auditing and assurance services |
MBRS p.2 LCCR Chapter 1 and pp. 242-261 |
ASA 101 ASA 200 |
2 |
Planning the audit Audit documentation Materiality |
MBRS pp. 2-7, 57 LCCR pp. 261-263, 310-322, 338-345, 397-400, 417-422, 436-442 Eilifsen & Messier (2013)** |
ASA 210 ASA 220 ASA 230 ASA 240 ASA 250 ASA 300 ASA 320 |
3 |
Understanding the entity and risk assessment Considering the risk of fraud Other risk considerations |
MBRS pp. 3-7, 38 LCCR pp. 322-337, 366-370, 495-498 |
ASA 315
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4 |
Financial statement assertions Internal controls Tests of controls |
MBRS pp. 34-38, 55-56 LCCR pp. 362-366, 370-396, 462-470, 511-520 [and Ch 14-17] |
ASA 315 ASA 330 |
5 |
Audit evidence Audit procedures in response to assessed risks Audit strategy |
MBRS pp. 54-57 LCCR pp. 423-436, 458-462, 498-507 |
ASA 315 ASA 330 ASA 500 ASA 501 ASA 505 |
6 |
Analytical procedures Audit sampling Using the work of others |
MBRS pp. 5-6, 56-57, 114 LCCR pp. 328, 346-348, 501-502, 534-549, 434, 466-467, 686-687 |
ASA 520 ASA 530 ASA 600 ASA 610 ASA 620 |
7† |
CLASS TEST (18 September 2014)† |
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MID-SEMESTER BREAK | |||
8†† |
Governance and the auditor Audit committees Internal auditing |
MBRS pp. 175-177 LCCR Chapter 2 (exclude pp. 69-81) Cohen, Krishnamoorthy & Wright (2004)** Soh & Martinov-Bennie (2011)** |
ASA 315 ASA 610 |
9 |
IT systems: Internal control IT systems: Substantive testing E-commerce environment and audit implications |
MBRS pp. 84-90 LCCR pp. 471-478, 507-510 ABSFEB Chapter 11** |
ASA 315 ASA 330 |
10 |
Completing the audit Subsequent events Going concern Audit reporting |
MBRS pp. 37, 114-121 LCCR Chapter 18 and Chapter 7 |
ASA 260 ASA 265 ASA 450 ASA 560 ASA 570 ASA 700 ASA 705 ASA 706 ASA 720 |
11 |
Auditors' legal liability Professional ethics and auditor independence Audit quality |
MBRS pp. 170-175 LCCR Chapter 3 and Chapter 5 IAASB (2014)** ICAA (2014)** |
ASA 102 ASA 220 ASQC 1 APES110 AGS1014 |
12 |
Public sector auditing Other assurance services Current issues |
MBRS pp. 142-147 LCCR Chapter 4 and pp. 69-81 Martinov-Bennie, Frost & Soh (2012)** |
ASAE3000 ASAE3100 ASAE3500 ASRS4400 |
13 |
Course review and revision |
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* MBRS and LCCR refer to the prescribed texts for the unit: Martinov-Bennie, N., Roebuck, P. and Soh, D. (2014) Auditing and Assurance: A Case Studies Approach, 6th Edition, LexisNexis Butterworths, Sydney, Australia; and Leung P., Coram, P., Cooper, B. and Richardson, P. (2011) Modern Auditing & Assurance Services, 5th Edition, John Wiley & Sons Australia Ltd, Brisbane, Australia respectively.
** These additional references will be made available on iLearn during the semester. ABSFEB refers to Arens, A., Best, P., Shailer, G., Fielder, B., Elder, R. and Beasley, M. (2011) Auditing, Assurance Services and Ethics in Australia: An Integrated Approach, 8th Edition, Pearson, Sydney, Australia.
† Note that there are no seminars in Week 7. Students MUST make themselves available between 6-8pm on Thursday 18 September to take the class test. Details on the class test venue will be provided on iLearn by Week 4.
†† Monday 6 October is a Public Holiday. Students registered in the Monday seminar need to attend an alternative seminar in this week. Refer to http://students.mq.edu.au/student_admin/timetables for a list of alternative seminars for the unit for this week only.
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy.html
Grading Policy http://mq.edu.au/policy/docs/grading/policy.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html
Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
For all student enquiries, visit Student Connect at ask.mq.edu.au
For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/.
When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.
We want our graduates to have emotional intelligence and sound interpersonal skills and to demonstrate discernment and common sense in their professional and personal judgement. They will exercise initiative as needed. They will be capable of risk assessment, and be able to handle ambiguity and complexity, enabling them to be adaptable in diverse and changing environments.
This graduate capability is supported by:
Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.
This graduate capability is supported by:
We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.
This graduate capability is supported by:
Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.
This graduate capability is supported by:
This unit uses research by Macquarie University researchers:
Martinov-Bennie, N., Frost, G. and Soh, D. (2012). "Assurance on sustainability reporting: State of play and future directions" in Contemporary Issues in Sustainability Reporting and Assurance, S. Jones and J. Ratnatunga (eds.), Emerald Group Publishing Limited, UK.
Soh, D. S. B. and N. Martinov-Bennie (2011). "The internal audit function: Perceptions of internal audit roles, effectiveness, and evaluation." Managerial Auditing Journal 26(7): 605-622. Available at: http://www.emeraldinsight.com/journals.htm?articleid=1941466. [Accessed 23 July 2014]
This unit uses research from external sources:
Cohen, J., Krishnamoorthy, G. and Wright, A. (2004). "The Corporate Governance Mosaic and Financial Reporting Quality." Journal of Accounting Literature 23: 87-152
Eilifsen, A. and Messier Jr., W. F. (2013). "Materiality Guidance of the Major Auditing Firms." Auditing: A Journal or Practice & Theory, Forthcoming. Available at: http://ssrn.com/abstract=2274845. [Accessed 23 July 2014]
Cohen, J. R. and Simnett. R. (2014). "CSR and Assurance Services: A Research Agenda." Auditing: A Journal or Practice & Theory, Forthcoming. Available at http://ssrn.com/abstract=2463837. [Accessed 23 July 2014]
Glover, S. M., Prawitt, D. F. and Drake, M. S. (2014). "Between a Rock and a Hard Place: A Path Forward for Using Substantive Analytical Procedures in Auditing Large P&L Accounts: Commentary & Analysis." SSRN working paper series, available at: http://ssrn.com/abstract=2408765. [Accessed 23 July 2014]
This unit examines topical issues and developments in the auditing profession in Australia and internationally such as through the following resources:
International Auditing and Assurance Standards Board (IAASB) (2014). "A Framework for Audit Quality: Key Elements that Create an Environment for Audit Quality", International Federation of Accountants (IFAC), New York. Available at: http://www.ifac.org/publications-resources/framework-audit-quality-key-elements-create-environment-audit-quality. [Accessed 23 July 2014]
International Auditing and Assurance Standards Board (IAASB) (2013). "Exposure Draft: Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing (ISAs)", International Federation of Accountants (IFAC), New York. Available at: http://www.ifac.org/auditing-assurance/auditor-reporting-iaasbs-1-priority. [Accessed 23 July 2014]
Australian Securities and Investments Commission (ASIC) (2014). "Audit inspection program report for 2012-13", ASIC, Australia. Available at: http://www.asic.gov.au/asic/asic.nsf/byheadline/Liaison?openDocument#3. [Accessed 23 July 2014]
International Forum of Independent Audit Regulators (IFIAR) (2014). "2013 Global Survey of Audit Inspection Findings." Available at: https://www.ifiar.org/IFIAR-Global-Survey-of-Inspection-Findings.aspx. [Accessed 23 July 2014]
Financial Reporting Council (FRC) (2007). "Promoting Audit Quality", Financial Reporting Council, London. Available at: https://www.frc.org.uk/Our-Work/Codes-Standards/Audit-and-assurance/Promoting-audit-quality.aspx [Accessed 23 July 2014]
Institute of Chartered Accountants Australia (2014). "Mandatory Audit Firm Rotation: Summary of Impacts." Available at: http://www.charteredaccountants.com.au/Industry-Topics/Audit-and-assurance/Current-issues/International-audit-news/News-and-updates/MandatoryAuditFirmRotation.aspx. [Accessed 23 July 2014]
ASX Corporate Governance Council (CGC) (2014). "Corporate Governance Principles and Recommendations", 3rd Edition, Australian Securities Exchange, Sydney. Available at: http://www.asx.com.au/regulation/corporate-governance-council.htm [Accessed 23 July 2014]
Federation of European Accountants (FEE) (2014). "Opening a discussion: The Future of Audit and Assurance." FEE, Belgium.
KPMG (2012). "A survey of fraud, bribery and corruption in Australia & New Zealand 2012." Available at: http://www.kpmg.com/au/en/issuesandinsights/articlespublications/fraud-survey/pages/fraud-bribery-corruption-survey-2012.aspx [Accessed 23 July 2014]