Audit and Assurance

Running head: AUDIT AND ASSURANCE
Audit and Assurance
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AUDIT AND ASSURANCE
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Executive Summary
The main purpose of the assessment is to analyse the business sector which is associated with
mining operations. The assessment would be recognizing the importance of key audit matters of
the business and how the same can affect the audit reporting framework which is followed by the
business. The key audit matters which have been introduced is mainly due to the fall of the
Lehman Brothers which is also discussed in the report. The report would be identifying
companies engaged in mining businesses and analyse the key audit matters which are reported by
such companies in the annual report of the business.

AUDIT AND ASSURANCE
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Table of Contents
Introduction......................................................................................................................................3
ASA 701: Rationales.......................................................................................................................3
Improvement in the Principle of Going Concern............................................................................5
ASA 701: Explanation.....................................................................................................................5
Key Audit Matters (KAM) of Australian Mining Industry.............................................................6
BHP Group Limited.....................................................................................................................7
Rio Tinto Limited........................................................................................................................7
Newcrest Mining Limited............................................................................................................8
Evolution Mining Limited...........................................................................................................9
Whitehaven coal..........................................................................................................................9
Downer Edi Ltd.........................................................................................................................10
Conclusion and Recommendations................................................................................................11
Reference.......................................................................................................................................12

AUDIT AND ASSURANCE
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Introduction
Auditing is a simple process of confirming the authentication of the books of accounts
which is prepared by the accounting department of any organization. It is said that the place
where the work of the accountant ends from there the work of auditor starts as to determine the
true nature of the accounts and analyzing the future of the company. For the period of last few
years the audit and auditor became the part of much malpractice and hence the practice came
under the purview of criticism. Due to the inappropriate practice done by the auditor against the
standard of audit many big corporate companies have met their demise (Ghafran and O'Sullivan
2013). This also puts a great impact on the market and hence a market has collapsed in the whole
world. The new standards have been introduced against the malpractice of the auditor in the form
of ASA 701 Communicating Key Audit Matters in the Independent Auditor’s Report (ASA 701).
This standard has replaced the existing guidelines of ASA 570 Going Concern and other
standards which is mentioned in terms of rules and regulation for the auditor to save from audit
(Auasb.gov.au. 2019). This report mainly discusses about the auditing standard of ASA 701 and
other auditing standard which will affect the accounts of the company and as a whole affect the
whole market (Auasb.gov.au. 2019). This report also discusses the efficiency created in Key
Audit Matter (KAM) in the report of the auditor which can be find in the annual report of the
mining company who are associated with the Australian Stock Exchange (ASX).
ASA 701: Rationales
The business of Lehman Brothers has seen demise due to the market reasons among
which auditor’s failure is one of the vital reasons. The management of the company has also one
of the reasons for the downfall of the company as the management involves in the malicious acts.