Code of Ethics and ASX Corporate Governance Principles for Auditors

ADVANCED AUDITING AND ASSURANCE
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ADVANCED AUDITING AND ASSURANCE

ADVANCED AUDITING AND ASSURANCE
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Executive summary:
This report aims at discussing the code of ethics and the principles of it which an auditor has
to follow before accepting an audit engagement. Further, this report aims at throwing light on
the relevant principle 4 of the ASX corporate governance, accounts that should be assessed
for risks, the business risks that the company is exposed to, and the principal assertions with
regard to these accounts. With regard to the accounts that had to be taken for the purposes of
assessing audit risks, Fixed Assets, Sales and Expenses have been taken. The key assertions
in audit include completeness, verifiability, recording etc.

ADVANCED AUDITING AND ASSURANCE
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Contents
Introduction:...............................................................................................................................4
Application of ethics on auditors:..............................................................................................4
Business operations of the company:.........................................................................................4
Rules and regulations that the company has to follow:..............................................................5
Business risks:............................................................................................................................6
Accounts that are exposed to risks:............................................................................................6
Fixed Assets:..........................................................................................................................6
Sales and Accounts receivables:.............................................................................................7
Expenses:................................................................................................................................7
Principle 4 of ASX Corporate governance:...............................................................................8
Planning materiality:..................................................................................................................9
Conclusion:................................................................................................................................9
References................................................................................................................................10

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Introduction:
The code of ethics lays down the rules and the regulations that the auditors are duty bound to
follow. It is based upon trust. These include integrity, objectivity, confidentiality,
competence. Mayne Pharma Limited which is engaged in the field of developing
pharmaceuticals has been undertaken for review.
Application of ethics on auditors:
The code of ethics is the statement of the principals and the expectations that govern the
behaviour of the individuals and the companies when it comes of conducting the internal
auditing. It comprises of the full text of the code of ethics of the company. The main aim of
this code is the promotion of the ethical culture of the auditors during the course and the
profession of internal auditing. These are the ethics that are necessary and are very apt for the
profession of internal audit. It has been formed on the trust which is based upon the objective
of assurance about the risk management, control and governance. These ethics comprise of
integrity, objectivity, confidentiality, and competency (Exemplar global, 2019).
The following ethics govern the engagement of an auditor:
 Integrity which means that the internal auditors would have trust and would provide
the basis for reliance on their judgment. They shall perform the work with an utmost
honesty, diligence and responsibility.
 Objectivity is that the auditors shall provide and indicate the highest level of
professional objectivity when it comes to gathering, communicating the desired
information about the activity or the process which is being examined. The auditor
shall disclose all of the material facts and the events to the client and he shall not hold
nay bias towards the client and shall disclose all facts related to the business
operations in the most pat manner
 Confidentiality. This in the sense that he shall not disclose the facts or the knowledge
that he has gained to anyone outside the management of the company. And he shall
not disclose the facts with the appropriate authority unless there is a legal obligation
to do so.
 Competency. This is that he shall apply all the skills, experience that he has gained in
discouraging his duties in the most apt manner. He shall engage himself in the
activities that have to be conducted as per his competence only (IIA, 2019).
Mayne Pharma Group Limited: