Arab Open University BE302: TMA - fall – 2015 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 o

Arab Open University
BE302: TMA - fall – 2015

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
(Marks & Spencer Group LLC.)
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.
Marks and Spencer Group LLC (also known as M&S; colloquially known as Marks and Sparks, Marks's or, simply, Marks) is a major British multinational retailer headquartered in the City of Westminster, London. It specializes in the selling of clothing, home products and luxury food products. M&S was founded in 1884 by Michael Marks and Thomas Spencer in Leeds.
In 1998, the company became the first British retailer to make a pre-tax profit of over £1 billion,[3] although subsequently it went into a sudden slump, which took the company, its shareholders, who included hundreds of thousands of small investors, and nearly all retail analysts and business journalists, by surprise. In November 2009, it was announced that Marc Bolland, formerly of Morrisons,[4] would take over as chief executive from executive chairman Stuart Rose in early 2010; Rose remained in the role of non-executive chairman until he was replaced by Robert Swannell in January 2011.[5][6]
Access the Marks & Spencer plc. Corporate web page at: http://corporate.marksandspencer.com/ , then download the annual report 2015 in PDF Form.


Use the annual report to answer the following questions.
Go to “Report of Independent Registered Public Accounting Firm”& answer the following questions. Read the report carefully.

1- Name the external auditor of Marks & Spencer Group LLC. Give some introduction on the Functions of external auditor and provide reference from report. (10 marks)

2- Refer to Annual Report pg # 5, the company discussed Non Audit Policy, What do you understand by Non Audit Policy? (10 marks)
3- Discuss the effectiveness of the audit committee, provide evidence from report.
(10 marks)

4- What do you understand by Non Audit Fee? Does Marks & Spencer Group LLC have any Non Audit Fee mentioned in Annual Report?
(10 marks)
5- Explain briefly the principle of assurance and provide the details of assurance from Annual report of Marks & Spencer Group LLC. (10 marks)
6- What is the external audit report on the presentation of financial statement of Marks & Spencer Group LLC? Name the different Financial statements that audited by Deloitte plc. (10 marks)
7- Discuss the difference between the Audit Committee Report and Auditors Report. What is the basic information discussed in these two reports?
(10 marks)
8- The report mentions that the financial statements are presented fairly in all material respect in conformity with the accounting principles generally accepted. Why is it important that Marks & Spencer follows a standard set of accounting principles? (10 marks)
9- What do you understand by assumption “going concern”. What auditors view on the company assumption of going concern? (10 marks)

10- What does the term “material misstatement” mean? Support your answer with an example from Annual report of Marks & Spencer LLC.
(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 Moodle.
Contents Title and contents page
TMA Financial Reporting on the Internet (Marks & Spencer Group LLC)
Reference list Recorded according to the Harvard style - Available in Moodle.