Auditors and Legal Liability .ad the following extract from

HI6026 AUDIT, ASSURANCE AND COMPLIANCEPage 3 of 6 Assignment Topic — Auditors and Legal Liability .ad the following extract from the AC. (the Association of Chartered Certified Accountants) website, which is the global body for professional accountants, as stated:”Over the past two decades the bill for litigation settlements of Big Four audit firms alone has run Into billions of dollars. Examples include Deloitte’s 2005 settlement of $250m regarding its audit of insurance company Fortress Re and PAC’s $229m settlement in the lawsuit brought by the shareholders of audit client Tyco in 2007.””Auditor liability is Increasingly concerning, both In terms of audit quality and the reputation of the profession but also in terms of the cost to the industry and the barriers this creates to competition within the audit market.” (Source: Given the importance of professional liability to auditors and the negative publicity this creates for the profession as a whole, research a recent case (Post 2000) where an auditor/audit firm was sued for professional negligence. Students may research cases from the UK, USA, NZ or Canada in addition to Australian cases.With reference to the facts of the selected case, the significant Auditing and Accounting issues and the final Judgement handed down in your selected case:• Provide a brief description of the key events and the factual issues behind the case • Explain the culpability or which parties were deemed responsible and why. Outline the damages imposed or the penalties and consider whether they were appropriate. • investigate and explain the relevant issues in Auditing and Accounting raised by the case, • The root-cause of the issues such as; market pressure, organisational culture, fraud etc. • any problems, mistakes or misrepresentations made by the defendants, which contributed to the adverse judgement and the awarding of damages, • Finally, provide recommendations and possible improvements to: o the Audit Strategy, o the Audit Program, o Other effective measures; which would prevent the recurrence of the same litigation in the future and maintain the professional reputation of auditors.Resources and Reference Links: 1. httos:// 2. 3. “Are Auditors fit for purpose”- 4. Textbook: Gay & Simnett, Auditing & Assurance Services in Australia, 6th Edn, McGraw Hill Education, 2017 5. Students may explore the following high profile cases: o Deloitte’s 2005 settlement of $250m regarding Its audit of Insurance company Fortress Re.o PwCs $229m settlement in the lawsuit brought by the shareholders of audit client Tyco in 2007 o Royal Bank of Scotland (RBS) vs Bannerman Johnstone MacLay (Bannerman) (2002)HI6026 AUDIT, ASSURANCE AND COMPLIANCEPage 4 of 6Group Formation and Group Assignment Students are required to work on the assignment in groups of 4 – 6, Produce a group report and a short video presentation of approximately 10mins. Group membership will need to be communicated to the local campus lecturer in writing to the session lecturer by week 6.Both assessment items must be submitted on Blackboard. The written assignment must be in a report format and submitted through safe-assign prior to final submission. The originality percentage should be as low as possible. The written submission must be double-checked, edited and rephrased If the originality percentage and plagiarism risk is noted as high, as per safe-assign.Video Presentation Students must use power-points slides with clear dot-points, noting the key information. The video presentation should be considered a professional business presentation, which would be viewed by colleagues in the Auditing profession. All students in the group must participate in the video or marks will be deducted. Video presentations should not exceed the 10mins time limit or marks will be deducted. Impressive video presentations may be played in class provided that consent is given.

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