AMP Limited: Business Risks and Audit Risks

Auditing and assurance

AMP Limited
Executive Summary
It is important for an audit firm to ascertain the worthiness of the company before
undertaking the audit job of that particular company. To ensure it is properly done, the
internal, as well as external environment needs to evaluated and studied. In the present report,
AMP Limited will be studied in an intensive manner. The research will shed light on the
internal, as well as external environment. The report initiates with the introduction of the
company followed by the core operations. Further, the four legislations that impacts AMP
Limited is highlighted. It is then followed by four accounts that are prone to material risk.
Lastly, the internal control deficiencies is stated. Overall, it can be stated that it is difficult for
the firm to conduct audit as there are many risks and issues prevalent in the company.
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AMP Limited
Contents
Introduction...........................................................................................................................................4
1. Areas in which AMP conducts its operations.................................................................................4
2. Four law/legislation that impacts AMP..........................................................................................5
3. FOUR business risks that affect the audit of AMP..........................................................................6
4. Four accounts to be at risk of material misstatements..................................................................8
5. Internal control weakness highlighted by Royal Commission........................................................9
6. Decision/ Conclusion for undertaking the audit..........................................................................10
References...........................................................................................................................................11
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AMP Limited
Introduction
The company AMP Limited is into the business of providing financial services such as
wealth management, life insurance policies, capital management services, etc. The company
has been facing many legal issues due to the lack of effective internal control and the errors
and frauds committed by the top level executives and have been in news for a long time. The
report emphasizes on the business risks and the audit risks in the company and provides an
advice to the proposed audit team on whether to conduct the audit of the company or not
along with the reasons thereof
1. Areas in which AMP conducts its operations
AMP Limited is a company based in Australia & New Zealand which is in the business of
providing financial services which include the following products and services:
i. Wealth Management- In this segment, the company provides superannuation plans for
benefits after retirement which includes self-managed superannuation plans also. The
company also provides retirement income solutions and investment plans for individuals. The
company helps the individuals in the management of their surplus funds which shall provide
future benefits through financial advisers.
ii. Wealth protection (Life Insurance)- the company provides life insurance solutions to its
customers including disability insurance solutions. There are a variety of life insurance
policies for individuals that the company offers.
iii. Banking services- the company is also engaged in providing financial assistance to its
customers for residential as well as investment purposes. It also provided financial help to the
AMP advice businesses (Livne, 2015).
iv. Capital Management Services- the company provides capital management services to its
customers including management of equities, multi-asset funds, etc. The company is also
involved in real estate management and infrastructure assets management which include
airports, shopping centers, pipelines and trains on behalf of its clients (Livne, 2015).
v. Other Services- the company provides other services such as financial advisory services.
Also, the company manages the closed insurance policies and the superannuation funds of
individuals.
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