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Assignment help 6577

Question:Assume that the audit for Allegiance Coal Limited (Allegiance), a mining company, will be coming up for tender. Prepare a client evaluation report based on your research for the senior partners of your audit firm. Your report should provide preliminary information as to whether or not the audit firm should consider tendering for the audit of Allegiance

You should conduct extensive research and perform an analysis of the annual report of Allegiance for the year ended 30 June 2017 and any other relevant information that you have obtained (Hint: Company’s website and Business news). 

In your report, you must address the following issues: 

3. Identify and explain FOUR (4) significant business risks for Allegiance. You also need to describe how these risks may lead to potential material misstatements in the financial report. (8 marks) 

4. Using the Allegiance 2017 annual report, identify and discuss Three (3) areas/accounts of concern. Why do you consider the chosen areas/accounts to be ‘risky’? (6 marks) 

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