Answer about Auditing 2022

AUDITING

Answer 1
Part a
Woolworths Group Limited is a well renowned public company engaged in the retail
industry. The audit of the financial statements of the enterprise is subjected to the various
provisions of the Corporations Act, 2001 (Cth). The section 336 specifically states for the
formulation of the auditing standards by the Auditing and Assurance Standards Board
(AUASB). Further, the sub section 4 of the said section states that the auditors must
mandatory abide by the requirements of the said auditing standards unless the standards
specifically states for the non-application of the auditing standards (Austlii, 2019). Thus, the
nature of the applicable auditing framework for the public company Woolworths Group
Limited is in the form of the standards that have the mandatory applicability. The purpose of
the auditing and assurance standards is stated to provide a guideline to the auditors in context
of their responsibilities and the manner of the preparation and contents therein for the
preparation of the auditor’s report (AUASB, 2019a). Hence, as an auditor partner in charge of
the company Woolworths group, it is the responsibility of the auditors to consider the
guidelines stated therein. Further, in relation to the duties and responsibilities of the auditors,
the APES 110 “Code of Ethics for Professional Accountants.”
Part b
The three auditing standards that are specifically applicable to the enterprise are stated as
follows. Firstly, the Auditing Standard ASA 701 “Communicating Key Audit Matters in the
Independent Auditor’s Report” states that auditors must communicate key audit matters in the
reports of the auditor. The purpose of the above auditing standard is to lift the role of the
auditor’s report in relation to the communication with the intended users (AUASB, 2019b).
Thus, the provision of the greater transparency is aimed at while performing the audit as the
said standard is mandatory. The second key audit standard applicable to the entity is the
Auditing Standard ASA 610 “Using the Work of Internal Auditors.” Being a public entity,
the entity is required to mandatory appoint internal auditors under the ASX Corporate
Governance Accounting Principles. Hence, as the principal statutory auditors, it is the
responsibility to abide by the requirements of the ASA 610 compulsorily. The purpose of the
said standard is to provide more robust framework for the evaluation of the using of the work
resulting out of the function of the internal audit (AUASB, 2019c). The third auditing
standard that is applicable on the enterprise, apart from the others is the Auditing Standard