Is Coles A Risk Of Consumer Law? Essay

The principle of unconscianbility within Australian consumer law was applied most notably in the case of Commercial Bank of Australia Ltd v Amadio. These judgments later played a role in determining the outcome of the Kakavas v Crown Melbourne Ltd, whereby the High court considered the principles and outcomes from the first case in the latter. Unconscionable conduct is concerned with the abuse of a dominant position by one contracting party over a weaker contracting party. When determining if this principle of unconscionable conduct has occurred, three main principled must be assed:

An offeror will have made an offer where it appears to a reasonable person in the position of the offeree that an offer was intended.

2 Managing fraud risk: The audit committee perspective Fraud in a fi nancial statement audit

CAS 300 requires auditors to their audit using a risk based model where the nature, timing and extent of audit procedures are based on the assessed risk of material misstatement. Pickett (2006) argues that for audits to be effective and efficient, much of the audit effort should be focused on areas that are considered to pose the highest audit risk. Additional audit procedures should be linked to individual audit assertions whereas other audit procedures need to be performed as and when needed. Thus, for an audit plan to be put in place, it is necessary for an auditor to come up with a risk profile of the client comprising an understanding of the business operating by the audit client, assess business risk and also perform its preliminary analytical review.

The audit team then assessed the business risk for the client. Smackey’s Dog Foods Inc did not reach their targets. In this case, the audit team successfully assessed the risk of material misstatements that currently exist. The increasing amounts of discarded food from the Smackey’s Best Boy Gourmet boutique is a prime example of the material misstatements.

Studmaster Pty Ltd was a landlord that owned a shopping complex in Bourke Street, Melbourne. Mrs Tran operated the “Vietnamese Lunch Box” outlet in the food court. She had little ability to speak or read English, which the representatives for Studmaster knew about. Studmaster proposed a three year renewal of her lease at $48,000 per annum plus GST for the first year and CPI increments in the second and third years.

During the performance of this integrated audit, require numerous judgments about the internal control and overall financial reporting and how well it addresses risks of material misstatements within the financial statements (AICPA, 2014). After re-evaluating the previous errors found from the previous audit, the audit team found the corrective actions to be appropriate and justified in elimination of human error by implementing additional checks and balances within the manual process. No additional misstatements have been found and all internal controls off the financial reporting seem appropriate and just.

This essay explores the corporate collapse of Harris-Scarfe on April 3 2001, which before their collapse was Australia’s third largest retail group (Buchanan 2004, p. 55). It will explore the collapse in the context of the auditing framework. In particular, how the financial indiscretions were not discovered by the auditors, which were going on as early as six years prior to the collapse (Buchanan 2004, p. 62). To start with, we define what the auditing objective is in order to work out where it failed in this case. ASA 200.11/ISA 200.11 defines the auditing objective as one that needs to ascertain reasonable assurance that the financial report as a whole is free from misstatement, whether due to error or fraud. In doing so the auditor can give an opinion of whether the financial report was prepared in accordance with the financial reporting framework (Gay & Simnett 2012, p. 12).

An auditor's legal liability under common-law requires the auditor to perform professional services with due care. An auditor would cite adherence to generally accepted auditing standards as evidence of having exercised due care in conducting the audit. Lawsuits for damages under common law usually result when someone suffers a financial loss after relying on financial statements later found to be materially misstated. Plaintiffs in legal actions involving auditors such as clients or third party users of financial statements generally assert all possible causes of action, including breach of contract, tort, deceit, fraud, and anything else that may be relevant to the claim.

Coles Supermarkets Australia Pty Ltd, trading as Coles, is an Australian supermarket chain owned by Wesfarmers.Coles provides fresh food, groceries, general merchandise, liquor, fuel and financial services to more than 21 million customers on average each week through its store network and online platform. Coles is constantly exploring and investing in important environmental projects and partnerships to reduce environmental impacts. Coles is constantly improving efficiencies within their supply chain, reducing greenhouse gas emissions across their businesses, and focusing on waste reduction and recycling. Coles measures and reports their emissions, energy use and waste on a regular basis, and seek out ways to minimize the impact of their operations on the environment .Coles also contributes to many charities and organization to give back to the society. Coles

The case study General Mills Inc. - Understanding Financial Statements focuses on the most basic idea of finance analysis. This case is a brief look into the language that is used in the finance world and a start to interaction with auditors. In this case, KPMG LLP, the public accounting firm that was auditing their statements, had sent two opinion letters. The first letter was ensuring that both parties were aware that General Mills had internal control over financial reporting. The second opinion letter stated that to auditor’s knowledge, General Mills had correctly reported its financial statements. The statements given in this case study are known as the four general financial statements. Displayed in the case are the

Therefore, just because an auditor considered a misstatement to be immaterial in a prior period does not mean that the misstatement can be ignored when evaluating audit findings in a subsequent period (Craig & Carmichael, 1993). “For example, if revenue has been materially overstated, the financial statements as a whole will be materially misstated, even if the effect of the misstatement on earnings is completely offset by an equivalent overstatement of expenses” (Evaluation of Misstatements Identified during the Audit, 2010, p. 92). Errors in an opening balance sheet may have, dollar-for-dollar, just as much of an impact upon the mismeasurement of current-period results as errors in the closing balance sheet (Craig & Carmichael, 1993). Inflated

The author, in order to complete the report studied several texts with regards to marketing and consumer ethics. The author also researched many useful websites with regards to Sainsbury's. The information studied can be found in the bibliography section found at the closing part the report.

(2) The reasonableness gap, one of the more subjective components of the gap, is caused by society’s increasing and often unrealistic demands for accountability. This gap can be narrowed by improving and increasing public education so as to demonstrate to the public that existing professional standards and legislative requirements are adequate. Proactive approaches such as the implementation of auditing education has to be enforced in as my occasions as possible, from business meetings to shareholders’ meeting. The MacDonald Comission expressed their opinion that audit educations have been ineffective as it concluded that most of the public expectations were reasonable and achievable. Therefore in addition, auditors have to both accustom to society’s more reasonable demands and improve the manner in which they communicate their findings to financial statement users. The accounting

This chapter discusses the practical and legal challenges facing consumers in cross border mobile transactions. Given that positive outcome in any national payment system is envisaged on efficiency and confidence it is indispensable to focus on security issues and privacy in order to uphold public loyalty in cross border mobile transactions. Inadequate regulation of cross border mobile transactions has resulted to cyber crime and fraud. Consumers face many legal challenges which are discussed hereunder.