Audit and Assurance Services docx

Running head: AUDIT AND ASSURANCE SERVICES
Audit and assurance services
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AUDIT AND ASSURANCE SERVICES
Executive summary:
The paper is developed to gain an insight into the auditing standards that is developed in the
rouse of global financial crisis. The rationale behind introducing auditing standard 701 is
researched providing an in depth explanation of the standard and its objective. Moreover, the
revision of the standard ASA 570 with respect to the entity capability to continue sustain also
been discussed. In this regard, a listed entity from the mining sector has been selected for
evaluating the efficacy of reporting the key audit matters in the independent report of auditor
or in the financial report. Introduction of the reviewed auditing standard is intended to bring
an perfection in the overall quality of audit and enhancing the transparency.

AUDIT AND ASSURANCE SERVICES
Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Evaluating the revision of ASA 570:.........................................................................................3
Explaining the rationale for the new auditing standard ASA 701:............................................5
Evaluating the efficacy of reporting of key audit matters of BHP Billiton Limited:.................6
Conclusion:................................................................................................................................9

AUDIT AND ASSURANCE SERVICES
Introduction:
In this study, a critical evaluation of the key audit matters presented in the
independent auditor report of one of the companies from either banking or mining industry
from the ASX (Australian stock exchange) has been elucidated. The auditing standard that is
“ASA ASA701 Communicating Key Audit Matters” has been incorporated to provide the
analysis. In addition to this, the revision of the standard ASA 570 has also been explained by
identifying the potential issues associated with entity’s capability to continue sustain. The
chosen organization for the purpose of analysis is BHP Billiton Limited that has it’s
headquarter in Melbourne, Australia. Financial year 2019 marked the solid performance of
the company that made it confident about the long term outlook. Over the past few years,
organization has generated strong cash flow that is used for delivering strong return to the
shareholders and attract growth projects. Auditing of the financial statements has been
conducted by the auditors in accordance with the requirements of the professional code of
conduct and corporation Act of Australia, 2001 (Carson et al. 2016).
Discussion:
Evaluating the revision of ASA 570:
Auditing and Assurance Standards Board (AASB) issues the the Auditing Standards
according to the rules and regulations of the Australian Securities and Investments
Commission Act 2001, Government of Australia. ASA 570 states the Auditing Standards, its
requirement and implications relating to Going Concern. The revision in the ASA 570 shows
the recent development in the Auditor’s Reporting in accordance with the International
Auditing and Assurance Standards Board. Going Concern is an accounting concept which
means the firm can continue its operations indefinitely as it has resources to maintain its
ongoing operations or is making a good volume of profit to stay afloat and avoid bankruptcy.