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Auditing assignment on the collapse of an Australian company One.Tel

Number of Words : 1556

Number of References : 7

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 This paper answers the following assignment question –
 In recent years there has been an increased emphasis on auditors using their professional judgement to obtain a better understanding of the business risks an organization is exposed to and the processes that need to be implemented to identify and respond to those risks. Similarly company directors and officers are subject to the Business judgement rule. Explain and contrast each of these concepts.
 One of the most spectacular business collapses in the Australian Business history was One.Tel. Discuss the collapse and how the directors and officers of One.Tel has used the business judgement rule to escape responsibility for their actions and what professional judgements its auditors could have considered to expose the business risks the company was exposed to.

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