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  Arab Open University BE302: TMA - Spring – 2015/2016 About TMA: The TMA covers Principles of Auditing & Other Assurance Services. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understa

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مُساهمةموضوع: Arab Open University BE302: TMA - Spring – 2015/2016 About TMA: The TMA covers Principles of Auditing & Other Assurance Services. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understa   الأربعاء مارس 30, 2016 4:49 am



Arab Open University
BE302: TMA - Spring – 2015/2016

About TMA:
The TMA covers Principles of Auditing & Other Assurance Services. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understanding of some of the learning points within chapters 1 to 5. This TMA requires you to apply the course concepts.

The TMA is intended to:
 Increase the students’ knowledge about the reality of Auditing as a profession.
 Assess students’ understanding of key learning points within chapters 1 to 5.
 Develop the ability to understand and interact with the nature of the professional standards & internal control in reality.
 Develop students’ communication skills, such as memo writing, essay writing, analysis and presentation of material.
 Develop basic ICT skills such as using the internet & e-library resources..

The TMA:
The TMA requires you to:
1- Review various study chapters (from Chapter 1 to 5) of ‘Principles of Auditing & Other Assurance Services’ Book and apply some of the concepts within it.
2- Conduct a simple information search using the internet.
3- Present your findings in not more than 1,200 words. The word count excludes headings, references, title page, and diagrams.
4- You should use a Microsoft Office Word and Times New Roman Font of 14 points.
5- You should read and follow the instructions below carefully. Each part of the process will carry marks for the assignment.



Criteria for Grade Distribution:
Criteria Content Referencing& e-library Structure and Presentation of ideas Total marks

Marks 90 5 5 100


Financial Reporting on the Internet
(McDonalds)
The internet is a good place to get information that is useful to you in your study of accounting. For example, you can find information about current events, professional accounting organizations, and specific companies that may support your study.
McDonald's is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across more than 36,000 outlets. Founded in the United States in 1940, the company began as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
A McDonald's restaurant is operated by a franchisee, or affiliate, or the corporation itself. The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, the company had annual revenues of $27.5 billion and profits of $5.5 billion. According to a 2012 BBC report, McDonald's is the world's second largest private employer—behind Walmart—with 1.9 million employees, 1.5 million of whom work for franchises.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries.
Access the McDonalds Corporate web page at: http://www.aboutmcdonalds.com/mcd/investors/financial-information/annual-report.html , then download the annual report 2014 in PDF Form.


Use the annual report to answer the following questions.
Go to “2014 Annual Report” of McDonalds & answer the following questions. Read the report carefully.

1- What do you understand by public accountings firms? Describe the different categories of public accounting firms. Also name the external auditor of McDonalds. Give some introduction on the Functions of external auditor and provide reference from report. (15 marks)

2- Reliable accounting and financial reporting aid society in allocating resources in an efficient manner. Explain why audits are demanded by society? Support your answer from the Annual report of 2014 of McDonalds. (15 marks)
3- Write the summary of audit committee report on the audit procedure in accordance with the standards of Public Company Accounting Oversight Board (PCAOB).
(15 marks)

4- What do you understand by material misstatement? Does McDonalds have strong internal control over financial reporting to overcome the material misstatement?
(15 marks)

5- Elaborate briefly the principle of assurance and provide the details of assurance from Annual report of McDonalds. (10 marks)

6- What is the external audit report on the presentation of financial statement of McDonalds? Name the different Financial statements that audited by external auditor. (10 marks)

7- Are auditors responsible for frauds? Discuss the auditor responsibility for the detection of errors and frauds? Support your answer from the Annual report of McDonalds.
(10 marks)
8- Explain the term ‘Audit Risk’ and ‘Audit evidence’. How auditors can reduce audit risk, support your answer from annual report of McDonalds. (10 marks)


In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your answer:
PT3 form (Cover) Available in LMS.
Contents Title and contents page
TMA Financial Reporting on the Internet (McDonalds)
Reference list Recorded according to the Harvard style - Available in LMS.


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Arab Open University BE302: TMA - Spring – 2015/2016 About TMA: The TMA covers Principles of Auditing & Other Assurance Services. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understa
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