Auditings And Assurance Report 2022

Running head: AUDITING AND ASSURANCE
Auditing and assurance
Name of the student
Name of the university
Student ID
Author note

1AUDITING AND ASSURANCE
Table of Contents
Introduction......................................................................................................................................1
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................8
Introduction
A major Australian based Retail Company; Woolworths Group is the second largest
company in Australia as per the revenue. The company has founded on 1924 with its operations
that involved supermarket, liquor retailing, hotels and pubs under the Australian Leisure and
Hospitality group. The company has listed with Australian Stock Exchange with the market
capital of 54.576 billion. Woolworths inaugurated its first store as the Woolworths Stupendous
Basement. The company had a nominal capital of 185,000 pounds and 85,000 shares were
offered to the public. Subscription was only 81,707 shares. This group is mainly ran by its
purpose that create better experience for better tomorrow by working together. In the recent
economy, the customer demands are changing rapidly and to meet the customer demands the
Group is continuously transforming by experimenting together. From the point of the impact of
the organization, 196,000 plus team members, executive and senior manager positions held by
women 34%. Responsibility towards the community, the company has 44.3 million dollar direct

2AUDITING AND ASSURANCE
community investment, 70 number of brand products. Concerning about the economic point of
the company, it drives the cash flow before dividends of 941 million dollar, returns on funds
24.2% and EBIT of the company is 2,724 million dollar.
Discussion
a. The Group, Woolworths has been considered as some of the most trusted brands in
Australia. The view of the organisation that while they operate their business, they endeavour to
create an excellent experience for each of their 28 million customers nationwide. This group has
three core businesses are Australia Food, New Zealand Food, Endeavour Group Limited
(woolworthsgroup.com, 2020). After analysing the company’s annual report it has been observed
that, Australian food sales performance improved in the second half, it ends the year with a good
momentum after a challenging phase. The VOC NPS of the Australian food’s was up 3 points in
respective of the previous year. Sales has increased by 5.3% to 39.6 billion dollar or 3.3% on a
normalised basis. Increase the comparable sales by 3.1% for the relevant year along with the
transaction growth of 1.8%. Sales of 39,568 million dollar in this particular Australian food area,
which is 3.3% up from the previous year. EBIT is 1,857 million dollar, which is also 3.8% up
from 2018(woolworthsgroup.com, 2020).
New Zealand food also backed a strong second half with the improved customer metrics.
It shows a strong sales and EBIT growth. The sales of 6,712 million dollar has come from New
Zealand Food sector, 2.4% growth from the previous year. EBIT has also growth of 1.0% from
the prior year and shows 296 million dollar (woolworthsgroup.com, 2020).
In the case of Endeavour Drinks, it evolves continuously in financial year 2019 with the
early progress on Dan Murphy’s repositioning. Considering the sales, the report reveals 8,657

3AUDITING AND ASSURANCE
million dollar with 3.2% high and EBIT position of 474 million dollar, which is 9.7% down
(woolworthsgroup.com, 2020).
In the recent competitive world, Woolworths has set their standards of operations and
quality services to its customers. They are serving the millions of their customers in every
community across Australia and New Zealand. Organisation is managing the long lasting benefit
in the retail sector (Chang, Yeh & Liu, 2015).
The key highlights of financial year 2019 are as follows:
February 2019- the Group signs up to BCA Supplier Payment Code, the transitions of
Woolworths Supermarkets away from $1 per liter milk (Knox, 2015).
March 2019- this concern has launched new digital media platform, Cartology.
April 2019- Completion of Petrol sale to EG Group, Big W network review completed.
May 2019- the buyback share of 1.7 million dollar has been completed (Parkinson, 2018).
As per the report of February 2020, the group Woolworths converted a major expansion
at western Australian organic farm Gingin (Knox, 2015). It has become the recent beneficiary of
this group and the first from Western Australia.
The Australian food market forecast to reach 80.7 billion dollar by 2024, with a CAGR of
5.1%. There are several opportunities in the Australian foodservice market. Steady and positive
growth was showed by the chained food operators and are expected to continue to grow year on
year, during the forecast period (Pagotto, & Halog, 2016).