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Audit Plan for Acacia Coal Limited

Required
1. For the purpose of the assignment, you assume the role of an auditor and your firm has recently been appointed as external auditor of an entity. As required by Auditing Standard ASA300, you are preparing an audit plan for the audit of the entity’s financial statements.
2. The audit fee is $30,000 and had been communicated to the client in the Engagement Letter.
3. You are required to download the 2011 annual report published by the following entity:
– Acacia Coal Limited (http://www.acaciacoal.com.au)
4. Using the first four steps in the audit process as prescribed in Chapter 6 (pages 254-255) of the textbook, plan the audit for the entity you have chosen. Since you are required to develop an audit plan for a real life entity, quoting directly from textbook does not meet the objective of the assignment.
5. Your audit plan must include the followings:
– Audit plan with the following headings:
1. Understanding the entity and its environment
2. Understanding internal control
3. Assessing the risks of material misstatement (for 5 key accounts)
4. Developing responses to assessed risks (for the accounts selected above)
– Appendix
– References
(no need to do introduction and conclusion)

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