There are three sections to this assignment. Each section is worth 10 marks. Each section includes a component for communication skills. Communication with clients is an imperative necessity for auditors and excellent writing skills are expected from professional accountants, therefore please write your answers carefully and clearly. You will lose marks for poor presentation, spelling mistakes or grammatical errors.

ASX Company: QBE Insurance Group Ltd (QBE)

Section 1. Determine the level of materiality to be used for the audit of the group accounts for the yearending in 2019. Your answer should include a discussion of the nature of materiality, and adescription of what materiality represents in terms of the audit of a set of financial statements, andshould discuss the different bases and considerations employed in arriving at materiality. Explain therationale behind your choice of a certain level of materiality. Provide a quantitative estimate ofmateriality for your company. Review the various draft notes and disclosures accompanying the draft annual report. Highlightthose that may have significance to the audit, eg. Contingencies, and outline the audit proceduresthat you will need to perform. Section 2. The partner has requested you to prepare a preliminary analytical review on the informationprovided by your company. The partner suggests that as a minimum you address key balance sheetand profit and loss horizontal analysis, vertical analysis and ratios over the period 2016 to 2019.Based on these results and the nature of your companys business and its markets, outline theapparent trends and changes in these ratios, the key risk areas for the audit and the matters that willhave to be addressed in the audit plan. Give examples of relevant assertions and at least one auditprocedure for each assertion. Section 3. Review the statement of cash flows. Which category of cash flows provided the majority of cashinflows? Which category had the greatest outflows? Identify the primary cash receipts and cashpayments during the year. What were the main non-cash financial and investing activities? Using theresults of your review of the cash flows, analytical review and other public information, evaluate thegoing concern risk of this company. What audit procedures would you recommend to address thisrisk.Review the audit report of the 2019 financial report. State what type of opinion was expressed?Arethere any additional sections or paragraphs indicating any audit issues? What key audit matters havebeen addressed and how? Describe the nature of these issues in detail.