Corporate Governance and Audit Procedures in Woolworth

Running head: AUDITING
AUDITING
Name of the Student
Name of the University
Author Note

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Executive Summary
The objective of report is to analyse the requirement of proper governance principles in a
business environment and how the same helps the business is proper implementation of
internal control process. The assessment would also be discussing regarding audit procedures
which can be conducted on a business activity. The report also states the eight-corporate
governance principles which are set out by ASX council for ensuring better governance
standard in a business. The organization that is based for the assessment is Woolworth which
is involved in retail business and the same is considered to be one of the leading businesses in
effective implementation of the Corporate governance principles in a business. In addition to
this, the assessment relates effective implementation of corporate governance with audit
strategy and procedures and how the same is beneficial for the same in business environment.

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Table of Contents
Introduction................................................................................................................................3
Corporate Governance...............................................................................................................3
Principle of Corporate Governance............................................................................................4
Principle 1..............................................................................................................................4
Principle 2..............................................................................................................................4
Principle 3..............................................................................................................................5
Principle 4..............................................................................................................................6
Principle 5..............................................................................................................................6
Principle 6..............................................................................................................................6
Principle 7..............................................................................................................................7
Principle 8..............................................................................................................................7
Effect of Adoption of Corporate Governance Principles...........................................................8
Risk Assessment Process.........................................................................................................10
Audit Approach........................................................................................................................11
Audit Strategy..........................................................................................................................12
Audit Evidence.........................................................................................................................13
Conclusion................................................................................................................................14
Reference and Bibliography.....................................................................................................15

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Introduction
Auditing is the check and inspection of organization financial report which is carried
by the auditor to determine whether the entity has prepared its financial statement in regards
to accounting standard or not. Auditor has to ensure that the entity had maintained its books
of accounts correctly. Auditing process assures the stakeholder that the organization financial
report is free from any materiality in company accounts. Auditor had to carry many different
procedures in the company books of accounts to check the materiality in the entity accounts
balance. It has to check the internal control system as this will assists them to know the
amount of risk associated in organization financial report (Appelbaum, Kogan and Vasarhelyi
2017). The internal control system is a system which helps the entity to minimise the risk in
the entity so if the organization does not have proper internal control system then it will have
more amount of risk in the business. The risk lies in every company business, and the
management must minimise the risk associated in business activities. The report shows
corporate governance that should followed by entity while carrying their operation in the
country. It states the eight corporate governance principles and shows how the companies
should follow the same while carrying their business activities. It also denotes the effect of
the adoption of those principles in the company financial statement.
Corporate Governance
It is the collection of processes and mechanisms by which the operated and controlled.
It signifies the distribution of responsibilities and rights among different members in the
business (Eilifsen and Messier Jr 2014). Corporate Governance helps the company to
maintain a proper relationship between stakeholder and upper management of the entity. It
includes the objective of the company and how the entity pursued the same in the regulatory,
social and market environment. Corporate Governance helps the entity to manage the interest