Evaluation of Business Operations and Risks of IOOF Holdings Limited

Running head: ADVANCED AUDITING AND ASSURANCE
Advanced Auditing and Assurance
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1ADVANCED AUDITING AND ASSURANCE
Executive Summary:
The report aims to evaluate the business operations of IOOF Holdings Limited owing to which
there is consideration of its latest annual report published in 2018. It has been found that the
management of the organisation has developed a reporting framework, which is appropriate from
the business context. However, different business risks have been identified, which is a crucial
aspect that the management has to take into consideration owing to the fact that they could have
adverse impact on business operations. It is possible for the management to avoid majority of the
business risks by staying proactive along with assuring adequate supervision. The above
discussion shows the identification of three major accounts that could be impacted largely owing
to the presence of material misstatements. Finally, it has been analysed that IOFF Holdings
Limited has maintained effective compliance with the fourth principle mentioned in the “Council
of ASX Corporate Governance Principles and Recommendations”. Therefore, it is recommended
to accept the audit work of IOFF Holdings Limited.

2ADVANCED AUDITING AND ASSURANCE
Table of Contents
Introduction:....................................................................................................................................3
Areas of business operations of IOOF:............................................................................................3
Business risks that could impact on the audit of IOOF:..................................................................4
Material misstatements and key assertions at risk:..........................................................................5
Adherence to corporate governance principles:..............................................................................8
Audit decision:.................................................................................................................................9
Conclusion:......................................................................................................................................9
References:....................................................................................................................................11

3ADVANCED AUDITING AND ASSURANCE
Introduction:
When the auditors finish review of the financial reports or conduct regulatory audit, they
provide assurance services as well. Assurance services could be defined as audit activities
providing objective and independent analysis of the financial statements or adherence efforts.
The primary goal of these audits are to assure that the financial statements depict fair and true
insight of the financial health of an organisation. The report aims to evaluate the business
operations of IOOF Holdings Limited owing to which there is consideration of its latest annual
report published in 2018. The risk identification of the organisation would be made related to
business operations. The next section would analyse the financial statements so that the accounts
affected mostly by the material misstatements could be detected. Furthermore, emphasis would
be placed on assessing whether the management of the organisation adheres to the Principle 4 of
ASX Corporate Governance. Based on the above analysis, decision regarding whether the audit
work of IOOF could be undertaken or not.
Areas of business operations of IOOF:
IOOF Holdings Limited is a financial service provider to the Australian residents. It is
listed in ASX and it is one of the largest organisations involved in providing financial products
and services to the clients. The main services provided by the organisation include
superannuation, financial advice, trustee services and investment management (Ioof.com.au). It
mainly conducts its operations via two segments, which include “Retail Funds Management and
Administration” and “Wholesale Funds Management”. The segment of “Retail Funds
Management and Administration” is involved in distributing and administering retail funds that
comprise of back office services and financial planning. On the other hand, the segment of