audit and assurance


COURSEWORK    Home Retail Group plc




Home Retail Group Investor Centre






This coursework contributes 50% to you overall module mark.




All material submitted must be the students own work.  Plagiarism or copying is a University assessment offence.



Home Retail Group plc are one of the UK’s leading home and general retailers, bringing together some of the UK’s most recognisable UK brands.  It comprises three divisions, Argos, Homebase and Financial Services.


Argos is the UK’s leading multi-channel retailer and Homebase is a leading home-enhancement retailer.   The Financial Services business makes it easy for customers to buy the products they want.




Extracts from Annual Report and Accounts  2013/ 14



  Group consolidated income statement  for the 52 weeks ended

   1 March 2014

  Consolidated statement of financial position  as at  1 March   


  Consolidated statement of cash flows for the 52 weeks ended

   1 March 2014

  Independent auditor’s report to the members of Home Retail      

   Group plc  30 April 2014

 – Audit committee report   May 2014



  Half-Year results  22 October 2014 ,  26 weeks to 30 Aug. 2014               


  Homebase to close one in four stores  The Telegraph 

   22 October 2014  







       Auditing and Assurance  Services  Third International Edition  Eilifsen & Messier   McGraw Hill   2014


Chapters 17 and 18


   Auditing   Millichamp & Taylor   10th  edition   Cengage   2013


Chapters  14, 26 and 27


   The Audit Process   Gray & Manson  5th  edition  Thomson



     Chapters  14, 16 and 17




    Principles of External Auditing   Porter, Simon & Hatherly

     4rd edition     Wiley    2013


     Chapters  9, 13 and 14   



    relevant APB / IAASB ISA’s and professional body

websites  (  APB ISA’s revised October 2009 )



         ISA 700  ( UK and Ireland  Revised September 2014 )   

                        The auditor’s report on financial statements


         ISA705    ( Revised October 2012 )

                         Modifications to opinions


         ISA 706   ( Revised October 2012 )

                         Emphasis of matter paragraphs     


ISA 315  ( revised June 2013 )

                Obtaining an understanding of the entity and its

                environment and assessing the risks of a material



ISA 500   Audit evidence


ISA 520   Analytical procedures


ISA 570  ( Revised September  2014 )   Going concern


        newspaper articles from  Nexis UK website













          1.  Critically evaluate the risk-based approach to external audit

               with particular reference to the audit of Home Retail Group plc. 


               You should give examples of how you might collect  evidence

               and assess the degree of business risk (  obtaining

               an understanding of the entity and its environment and

               assessing the risks of a material misstatement )  in the 2014

               audit of the company and factors affecting the company’s  

               â€˜  control environment  ‘.


                                                                           (   20%  )



          2.  Identify those features of Home Retail Group plc’s results for

               2012 – 2014  which might indicate to you as the external auditor

               that the company was facing going concern problems.


                                                                              (  40 %  )




3. Identify any qualitative factors or information in the annual

    reports and accounts for Home Retail Group plc for 2013/ 14 ,

    including the report of the audit committee,  that you as the

    external auditor would consider that might suggest that the

    company would be able to continue in business for the

    foreseeable future.


                                                                          (   15%  )


     4.   With reference to the Independent auditors’ report  of Home

           Retail Group plc and specifically the areas of particular audit

           focus identified by PwC discuss the factors which would

     influence  you as the external auditor in forming an opinion on

     the financial statements of Home Retail Group plc for 2014.


     Indicate briefly the form that your opinion might take including

     any emphasis of matters paragraph that you may consider

     making in relation to the appropriateness of the going

     concern basis.   


                                                                           (  20%  )



Overall structure and presentation, referencing and bibliography


                                                                                 (    5%  )




       Your coursework  should be 1500 words long +/- 10%


       The coursework must be clearly presented with an

          introduction, structured headings and sections and a fully

          referenced bibliography


       You must relate the specific practical issues arising from the 

audit of the company to relevant  ISA’s,  to the audit

process and to articles from the accounting literature


       You should highlight the external auditors approach to the

assessment of audit risk in planning the overall audit programme


       You should clearly identify the range of sources you have used in obtaining evidence 

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