Audit Assurance and Compliance
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This assignment discusses the importance of audit assurance and compliance in corporate governance. It explores the ASX corporate governance principles and their impact on risk assessment, audit strategy, and audit evidences. The case study of Santos Limited is used to analyze the adoption of these principles and recommendations.
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Running Head: AUDIT ASSURANCE AND COMPLAINCE
AUDIT ASSURANCE AND COMPLAINCE
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Name of the University
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AUDIT ASSURANCE AND COMPLAINCE
Name of the Student
Name of the University
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1AUDIT ASSURANCE AND COMPLAINCE
Executive Summary
Auditing is the essential part in hierarchy of the ideal structure of corporate governance. If
corporate governance of the company is good enough, then it contributes towards efficiency
as well as economic growth of the business. The increasing financial crisis as well as
corporate scandal inevitably leads towards demands for the increased transparency as well as
more regulations, when it comes to company’s financial audit. However, it is the profession
of auditors itself that should leads towards work of the reinforcement of the confidence in
audit. Hence, this assignment will includes discussion on ASX corporate governance
principles and recommendations, effect of adoption of these principles on company and the
influence of the ASX principles on risk assessment process, audit approaches, audit strategy
as well as audit evidences. Hence, it can be said that
Executive Summary
Auditing is the essential part in hierarchy of the ideal structure of corporate governance. If
corporate governance of the company is good enough, then it contributes towards efficiency
as well as economic growth of the business. The increasing financial crisis as well as
corporate scandal inevitably leads towards demands for the increased transparency as well as
more regulations, when it comes to company’s financial audit. However, it is the profession
of auditors itself that should leads towards work of the reinforcement of the confidence in
audit. Hence, this assignment will includes discussion on ASX corporate governance
principles and recommendations, effect of adoption of these principles on company and the
influence of the ASX principles on risk assessment process, audit approaches, audit strategy
as well as audit evidences. Hence, it can be said that
2AUDIT ASSURANCE AND COMPLAINCE
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Corporate Governance...........................................................................................................4
ASX Corporate Governance Principles and Recommendations............................................4
Effect of Full Adoption of each Corporate Governance Principle and Recommendations...7
Influence of eight ASX Corporate Governance Principles on Auditing................................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................12
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Corporate Governance...........................................................................................................4
ASX Corporate Governance Principles and Recommendations............................................4
Effect of Full Adoption of each Corporate Governance Principle and Recommendations...7
Influence of eight ASX Corporate Governance Principles on Auditing................................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................12
3AUDIT ASSURANCE AND COMPLAINCE
Introduction
The auditors plays vital role in the protection of the interests of the shareholders. The
auditor helps in reporting the state of the finance of the company and attests the validity of
the financial reports, which have been released. The auditor ensures that the board is
receiving accurate as well as reliable information. Corporate governance is defined as the
oversight of policies, practices as well as the procedures of corporation. This oversight
ensures that business is operating in the best interest of shareholders as well as corporation. In
Australia, Corporate governance is gaining great importance. It is interacting with the
auditing as well as it is useful for understanding the way corporate governance as well as
auditing is affecting the companies (Lama and Anderson 2015). The auditor of company is
not having direct responsibility for the corporate governance rather it helps in providing the
check on the aspects of the information of the system of governance. The large collapses of
the corporate has resulted into commencing the program of the reform that is designed for
strengthening of corporate governance in the Australia. The organization that will be
considered for analysis in the paper will be Santos Limited. Santos Limited is predominantly
one of most independent prominent producers of oil as well as gas in the region of Asia-
Pacific that supplies energy requirements all across the country of Australia as well as Asia.
The Australian energy company, Santos Limited is having large investors as well as
shareholders overseas. This company is engaged in the activities that include exploring,
developing, producing as well as selling of the natural gases and oils. The company is
considered as second largest independent producer of oil and gas of the country (Asx.com.au.
2019).
Hence, under this assignment, discussion will be on eight ASX corporate governance
principles and recommendations. Moreover, explanation will be on likely effect of the full
adoption of each of the principles and recommendations of corporate governance for the
Introduction
The auditors plays vital role in the protection of the interests of the shareholders. The
auditor helps in reporting the state of the finance of the company and attests the validity of
the financial reports, which have been released. The auditor ensures that the board is
receiving accurate as well as reliable information. Corporate governance is defined as the
oversight of policies, practices as well as the procedures of corporation. This oversight
ensures that business is operating in the best interest of shareholders as well as corporation. In
Australia, Corporate governance is gaining great importance. It is interacting with the
auditing as well as it is useful for understanding the way corporate governance as well as
auditing is affecting the companies (Lama and Anderson 2015). The auditor of company is
not having direct responsibility for the corporate governance rather it helps in providing the
check on the aspects of the information of the system of governance. The large collapses of
the corporate has resulted into commencing the program of the reform that is designed for
strengthening of corporate governance in the Australia. The organization that will be
considered for analysis in the paper will be Santos Limited. Santos Limited is predominantly
one of most independent prominent producers of oil as well as gas in the region of Asia-
Pacific that supplies energy requirements all across the country of Australia as well as Asia.
The Australian energy company, Santos Limited is having large investors as well as
shareholders overseas. This company is engaged in the activities that include exploring,
developing, producing as well as selling of the natural gases and oils. The company is
considered as second largest independent producer of oil and gas of the country (Asx.com.au.
2019).
Hence, under this assignment, discussion will be on eight ASX corporate governance
principles and recommendations. Moreover, explanation will be on likely effect of the full
adoption of each of the principles and recommendations of corporate governance for the
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4AUDIT ASSURANCE AND COMPLAINCE
organization. Lastly, discussion will be on how full adoption of eight ASX corporate
governance principles would likely influence the process of risk assessment, audit strategy,
audit approaches and audit evidences. .
Discussion
Corporate Governance
The concept corporate governance is explained as framework of the rules, systems,
processes as well as relationships within and by the help of which the authority is being
exercised as well as controlled in organization. This helps in encompassing the mechanism
with the help of which the companies as well as those in the control generally are held to the
account. Moreover, good corporate governance is crucial as it helps in promoting the
confidence of the investor that is important for the ability of the organizations that are listed
on ASX for competing for the capital. The major objectives of the corporate governance
include motivations of the value-maximizing decisions, protections of the assets from the
unauthorized acquisitions or the uses as well as production of the proper financial statements
(Nadeem, Zaman and Saleem, 2017). However, in case of auditing, the audit committee plays
the indispensable role in challenging of the practices, which is having the potential for
undermining financial reporting quality. Auditors are the significant part of the monitoring
system of firm and therefore it is considered as an essential component of the corporate
governance. Auditors’ works with the other actors in corporate governance for ensuring that
the stakeholders receive highest levels of the financial reports quality and they helps for
protecting the interests of the investors as well as future and current shareholders
(Asx.com.au. 2019).
organization. Lastly, discussion will be on how full adoption of eight ASX corporate
governance principles would likely influence the process of risk assessment, audit strategy,
audit approaches and audit evidences. .
Discussion
Corporate Governance
The concept corporate governance is explained as framework of the rules, systems,
processes as well as relationships within and by the help of which the authority is being
exercised as well as controlled in organization. This helps in encompassing the mechanism
with the help of which the companies as well as those in the control generally are held to the
account. Moreover, good corporate governance is crucial as it helps in promoting the
confidence of the investor that is important for the ability of the organizations that are listed
on ASX for competing for the capital. The major objectives of the corporate governance
include motivations of the value-maximizing decisions, protections of the assets from the
unauthorized acquisitions or the uses as well as production of the proper financial statements
(Nadeem, Zaman and Saleem, 2017). However, in case of auditing, the audit committee plays
the indispensable role in challenging of the practices, which is having the potential for
undermining financial reporting quality. Auditors are the significant part of the monitoring
system of firm and therefore it is considered as an essential component of the corporate
governance. Auditors’ works with the other actors in corporate governance for ensuring that
the stakeholders receive highest levels of the financial reports quality and they helps for
protecting the interests of the investors as well as future and current shareholders
(Asx.com.au. 2019).
5AUDIT ASSURANCE AND COMPLAINCE
ASX Corporate Governance Principles and the Recommendations
The principles and the recommendations helps in setting out the recommended
practices of corporate governance for organizations that are listed on ASX, which likely helps
in the achievement of the outcomes of the good governance as well as meeting of reasonable
expectations of the most of the shareholders in many situations. Moreover, the council has
recognized that different organizations might legitimately adopt the different practices of the
governance that are based on the ranges of the factors that includes corporate culture, sizes,
history as well as complexity (Chan, Watson and Woodliff2014). The approach of principles
and recommendations ensures that market should receive the significant level of information
of the governance arrangement of the organization so that the investors as well as the other
stakeholders can have the meaningful dialogue with the board as well as management on the
matters of management. Moreover, it helps to factor the information provided into the
decisions regarding whether or not for investing in the organizations as well as for voting on
the particular resolutions (Miglani, Ahmed and Henry 2015). The principles as well as
recommendations of ASX are structured around as well as seek for promoting eight central
principles, which are explained in following points:
Laying solid foundations for the oversight and the management- In this principle
ASX CGU principle, the listed organization should have as well as discloses the board
charter. It helps in setting out respective roles and the responsibilities of board and the
management and the matters that is explicitly reserved to the board as well as those
who are delegated to the management (Xu, How and Verhoeven2017). Moreover, the
listed organization should undertake the appropriate checks before the appointment of
the senior executive or by putting someone forward for the election as the director as
well as providing the security holders with having all of the material information in
profession that are relevant to the decision on whether or not electing or reelecting
ASX Corporate Governance Principles and the Recommendations
The principles and the recommendations helps in setting out the recommended
practices of corporate governance for organizations that are listed on ASX, which likely helps
in the achievement of the outcomes of the good governance as well as meeting of reasonable
expectations of the most of the shareholders in many situations. Moreover, the council has
recognized that different organizations might legitimately adopt the different practices of the
governance that are based on the ranges of the factors that includes corporate culture, sizes,
history as well as complexity (Chan, Watson and Woodliff2014). The approach of principles
and recommendations ensures that market should receive the significant level of information
of the governance arrangement of the organization so that the investors as well as the other
stakeholders can have the meaningful dialogue with the board as well as management on the
matters of management. Moreover, it helps to factor the information provided into the
decisions regarding whether or not for investing in the organizations as well as for voting on
the particular resolutions (Miglani, Ahmed and Henry 2015). The principles as well as
recommendations of ASX are structured around as well as seek for promoting eight central
principles, which are explained in following points:
Laying solid foundations for the oversight and the management- In this principle
ASX CGU principle, the listed organization should have as well as discloses the board
charter. It helps in setting out respective roles and the responsibilities of board and the
management and the matters that is explicitly reserved to the board as well as those
who are delegated to the management (Xu, How and Verhoeven2017). Moreover, the
listed organization should undertake the appropriate checks before the appointment of
the senior executive or by putting someone forward for the election as the director as
well as providing the security holders with having all of the material information in
profession that are relevant to the decision on whether or not electing or reelecting
6AUDIT ASSURANCE AND COMPLAINCE
director. Further, the listed organization should be having written agreement that is
with each senior director as well as the executives to sets out terms of the appointment
(de Villiers and Alexander 2014).
Structuring the board for effective and adding value- The second principles of
ASX CGU aims for structuring the board for adding the value. This principle requires
the listed entity for having regard of their board and their sizes, composition as well as
their commitment, which enable for discharging their duties effectively. The principle
provides the recommendations that promises that the listed board of entity should be
having nomination committee that includes having three members in which majority
is of independent directors, chaired by independent director, committee charter,
committee members and at the yearend of reporting period, number of times
committee met though the period and attendance of individual members of meetings.
Moreover, other recommendation includes disclosure of matrix of skills of board and
diversity on board, disclosures of directors’ names, service length of each director,
opinion of board on independence as well as programs for inducting new directors
and providing opportunities for professional development (Kentet al. 2016).
Instilling the culture to act ethically, lawfully and responsibly-This
principlerequires the listed organization for acting ethically as well as responsibly. It
includes having as well as disclosing the code of conduct for the directors, senior
executives as well as employees and ensuring that board or the committee is informed
regarding material breeching of code (Klettner2016).
Safeguarding Integrity of the Corporate Reports- The principles requires the listed
organizations for having appropriate processes for verifying of their corporate ethics.
Making balanced and timely disclosures- This principle requires the listed
organization for making timely as well as balanced disclosures on all the matters that
director. Further, the listed organization should be having written agreement that is
with each senior director as well as the executives to sets out terms of the appointment
(de Villiers and Alexander 2014).
Structuring the board for effective and adding value- The second principles of
ASX CGU aims for structuring the board for adding the value. This principle requires
the listed entity for having regard of their board and their sizes, composition as well as
their commitment, which enable for discharging their duties effectively. The principle
provides the recommendations that promises that the listed board of entity should be
having nomination committee that includes having three members in which majority
is of independent directors, chaired by independent director, committee charter,
committee members and at the yearend of reporting period, number of times
committee met though the period and attendance of individual members of meetings.
Moreover, other recommendation includes disclosure of matrix of skills of board and
diversity on board, disclosures of directors’ names, service length of each director,
opinion of board on independence as well as programs for inducting new directors
and providing opportunities for professional development (Kentet al. 2016).
Instilling the culture to act ethically, lawfully and responsibly-This
principlerequires the listed organization for acting ethically as well as responsibly. It
includes having as well as disclosing the code of conduct for the directors, senior
executives as well as employees and ensuring that board or the committee is informed
regarding material breeching of code (Klettner2016).
Safeguarding Integrity of the Corporate Reports- The principles requires the listed
organizations for having appropriate processes for verifying of their corporate ethics.
Making balanced and timely disclosures- This principle requires the listed
organization for making timely as well as balanced disclosures on all the matters that
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7AUDIT ASSURANCE AND COMPLAINCE
concerns that the reasonable person should expect for having material effect on values
or prices of the securities.
Respecting Rights of Security Holders- The principle of respecting rights of
security holders requires that the listed organization should be providing their security
holders with the appropriate information as well as facilities for allowing them for
exercising their rights as security holders effectively.
Recognizing and Managing Risk- This principle requires the listed organization for
establishing the framework of sound risk management as well as periodically
reviewing effectiveness of the framework.
Remunerating Fairly as well as Responsibly- This principle requires the listed
organization for paying remunerations to the director that is sufficient for attracting as
well as retaining the high quality directors and motivating the high quality senior
executives as well as aligning the interests with value creation for the security holders
and the risk appetite (Wu and Patel 2014).
Effect of Full Adoption of each Corporate Governance Principle and Recommendations
The ASX corporate governance council’s adoption of corporate governance principles
as well as recommendations helps to analyze Australian companies to see how it has been
approached to the recommendations in first full year of reporting since it has been released.
Moreover, the recommendations provided by ASX has covered the role of board with their
composition and the responsibilities, communication of shareholders, continuous disclosures,
social, economic and environment sustainability risks as well as risk management (Chang and
Wee 2016).
This adoption of ASX CGU principles and recommendations will enhance
independent services of audit for helping in the enhancement of the information reliability
that is prepared by the clients that would be useful to stakeholders, investors as well as
concerns that the reasonable person should expect for having material effect on values
or prices of the securities.
Respecting Rights of Security Holders- The principle of respecting rights of
security holders requires that the listed organization should be providing their security
holders with the appropriate information as well as facilities for allowing them for
exercising their rights as security holders effectively.
Recognizing and Managing Risk- This principle requires the listed organization for
establishing the framework of sound risk management as well as periodically
reviewing effectiveness of the framework.
Remunerating Fairly as well as Responsibly- This principle requires the listed
organization for paying remunerations to the director that is sufficient for attracting as
well as retaining the high quality directors and motivating the high quality senior
executives as well as aligning the interests with value creation for the security holders
and the risk appetite (Wu and Patel 2014).
Effect of Full Adoption of each Corporate Governance Principle and Recommendations
The ASX corporate governance council’s adoption of corporate governance principles
as well as recommendations helps to analyze Australian companies to see how it has been
approached to the recommendations in first full year of reporting since it has been released.
Moreover, the recommendations provided by ASX has covered the role of board with their
composition and the responsibilities, communication of shareholders, continuous disclosures,
social, economic and environment sustainability risks as well as risk management (Chang and
Wee 2016).
This adoption of ASX CGU principles and recommendations will enhance
independent services of audit for helping in the enhancement of the information reliability
that is prepared by the clients that would be useful to stakeholders, investors as well as
8AUDIT ASSURANCE AND COMPLAINCE
creditors. It helps the members of committee of audit for keeping up with relevant issues of
the business as well as for enhancing the practices as well as processes. Adoption of the
principles of the corporate governance strengthens corporate governance in Australia in
responses to the concerns of the community over the causes of the corporate collapses
(Klettner, Clarke and Boersma2014). These collapses have resulted for providing emphasis
on the directors that is not only concerned with organizational financial and managerial
performance but also with the own performance. The adoption of this principle by the
company helps them to understand the expectations of the stakeholders to enhance as well as
maintain the confidence of the investors for developing the recommendations that reflects
internationally accepted practices. Moreover, the ASX principles and recommendations
application helps for adding value to structure of company (Young and Thyil2014).
In case of Santos Limited, their board as well as management of the company is
committed towards highest standards of the corporate governance. The company believes that
they achieving their vision as the leading organization of energy for Asia as well as Australia,
which is necessary for meeting highest standards of the personnel safety and the
environmental performances, business conduct and the governance all across the operations
of Santos in the Australia as well as internationally. The company conducts their business
operations according to the laws and regulations of different Australian jurisdiction.
Moreover, the international operations of the company are conducted according to the
countries laws as well as regulations of countries under which it is operates (Seamer 2014).
Further, Santos Limited board operates under the set of the well-established policies of the
corporate governance, which helps in reinforcing responsibilities of all the directors
according to requirements of Corporation Act 2001 as well as ASX Listing Rules. The Board
of the company reviews regularly as well as updates their policies of corporate governance
for ensuring that they continue for reflecting the best practices including the compliance that
creditors. It helps the members of committee of audit for keeping up with relevant issues of
the business as well as for enhancing the practices as well as processes. Adoption of the
principles of the corporate governance strengthens corporate governance in Australia in
responses to the concerns of the community over the causes of the corporate collapses
(Klettner, Clarke and Boersma2014). These collapses have resulted for providing emphasis
on the directors that is not only concerned with organizational financial and managerial
performance but also with the own performance. The adoption of this principle by the
company helps them to understand the expectations of the stakeholders to enhance as well as
maintain the confidence of the investors for developing the recommendations that reflects
internationally accepted practices. Moreover, the ASX principles and recommendations
application helps for adding value to structure of company (Young and Thyil2014).
In case of Santos Limited, their board as well as management of the company is
committed towards highest standards of the corporate governance. The company believes that
they achieving their vision as the leading organization of energy for Asia as well as Australia,
which is necessary for meeting highest standards of the personnel safety and the
environmental performances, business conduct and the governance all across the operations
of Santos in the Australia as well as internationally. The company conducts their business
operations according to the laws and regulations of different Australian jurisdiction.
Moreover, the international operations of the company are conducted according to the
countries laws as well as regulations of countries under which it is operates (Seamer 2014).
Further, Santos Limited board operates under the set of the well-established policies of the
corporate governance, which helps in reinforcing responsibilities of all the directors
according to requirements of Corporation Act 2001 as well as ASX Listing Rules. The Board
of the company reviews regularly as well as updates their policies of corporate governance
for ensuring that they continue for reflecting the best practices including the compliance that
9AUDIT ASSURANCE AND COMPLAINCE
is with ASX Corporate Governance Principles and Recommendations as well as with the
global developments in the best practices (Santos.com. 2019).
Influence of eight ASX Corporate Governance Principles on Auditing
Risk Assessment Process
The principles and ASX corporate governance helps in provide the principle for the
listed company of Australia for the system of reviewing as well as ratifying the system of the
risk management and the internal control and compliance, legal compliance as well as codes
of conduct. The principle provides the company’s board or the appropriate committee of
board for establishing the policies on the risk management as well as oversight
(Yarram2015).
In case of Santos Limited, the company is committed towards managing the risk in
the proactive, effective as well as structured manner for achieving the objective of the
business. The Audit and Risk Committee of the company is being responsible for reviewing
effectiveness of the policy. The policyis reviewed as well as revised, which is at the
appropriate intervals when requiredto keep it current (Santos.com. 2019).
Audit Approach
The principle of ASX on corporate governance helps in providing the listed company
for choosing to adopt the fundamental matter for their boards of director who is the body
charged up with the legal responsibility for managing their business with due care as well as
diligence and ensures appropriate arrangements of governance in place.
In case of Santos Limited, the company conducts the audit according the applicable
standards for giving the true as well as the fair view of the consolidated financial position of
the Group (Klettner, Clarke and Boersma2014).
is with ASX Corporate Governance Principles and Recommendations as well as with the
global developments in the best practices (Santos.com. 2019).
Influence of eight ASX Corporate Governance Principles on Auditing
Risk Assessment Process
The principles and ASX corporate governance helps in provide the principle for the
listed company of Australia for the system of reviewing as well as ratifying the system of the
risk management and the internal control and compliance, legal compliance as well as codes
of conduct. The principle provides the company’s board or the appropriate committee of
board for establishing the policies on the risk management as well as oversight
(Yarram2015).
In case of Santos Limited, the company is committed towards managing the risk in
the proactive, effective as well as structured manner for achieving the objective of the
business. The Audit and Risk Committee of the company is being responsible for reviewing
effectiveness of the policy. The policyis reviewed as well as revised, which is at the
appropriate intervals when requiredto keep it current (Santos.com. 2019).
Audit Approach
The principle of ASX on corporate governance helps in providing the listed company
for choosing to adopt the fundamental matter for their boards of director who is the body
charged up with the legal responsibility for managing their business with due care as well as
diligence and ensures appropriate arrangements of governance in place.
In case of Santos Limited, the company conducts the audit according the applicable
standards for giving the true as well as the fair view of the consolidated financial position of
the Group (Klettner, Clarke and Boersma2014).
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10AUDIT ASSURANCE AND COMPLAINCE
Audit Strategy
The principle of ASX corporate governance helps the audit committee or board for
setting out the timing, directions as well as scope of the audit. These strategies are used as the
guideline for developing the plan of audit. The audit committee prepares strategy document
that includes the statement of key decisions that are required for planning properly on the
audit.
In case of Santos Limited, the company makes professional judgements on the key
matters of audit that are most significant in audit of financial report in current year.
Moreover, audit of financial report is designed for responding to the assessment of the risks
of the material misstatement of the financial report (Swan 2014).
Audit Evidence
The ASX corporate governance provides the principles that help in audit process to be
transparent enough. It helps in enhancing the audit evidence. It means that the auditors can
obtain evidences during the financial audit as well as it is recorded in working papers of
audit. The auditors are required for having audit evidences for seeing whether the company is
having correct information to consider their financial transactionsconfirms to their financial
statements. The auditors have to make sure that the data or the information provided to them
can be helpful for drawing reasonable conclusions (Balachandran and Faff 2015).
In case Santos Limited, the company believe that evidences of audit are obtained by
them is suitable as well as sufficient for providing the basis for the opinion. The auditors of
the company is independent of the group that works according to the requirements of ethical
standards that is APES 110 ethics for the professional accountants, which are relevant to
Australian financial report (Christensenet al. 2015).
Audit Strategy
The principle of ASX corporate governance helps the audit committee or board for
setting out the timing, directions as well as scope of the audit. These strategies are used as the
guideline for developing the plan of audit. The audit committee prepares strategy document
that includes the statement of key decisions that are required for planning properly on the
audit.
In case of Santos Limited, the company makes professional judgements on the key
matters of audit that are most significant in audit of financial report in current year.
Moreover, audit of financial report is designed for responding to the assessment of the risks
of the material misstatement of the financial report (Swan 2014).
Audit Evidence
The ASX corporate governance provides the principles that help in audit process to be
transparent enough. It helps in enhancing the audit evidence. It means that the auditors can
obtain evidences during the financial audit as well as it is recorded in working papers of
audit. The auditors are required for having audit evidences for seeing whether the company is
having correct information to consider their financial transactionsconfirms to their financial
statements. The auditors have to make sure that the data or the information provided to them
can be helpful for drawing reasonable conclusions (Balachandran and Faff 2015).
In case Santos Limited, the company believe that evidences of audit are obtained by
them is suitable as well as sufficient for providing the basis for the opinion. The auditors of
the company is independent of the group that works according to the requirements of ethical
standards that is APES 110 ethics for the professional accountants, which are relevant to
Australian financial report (Christensenet al. 2015).
11AUDIT ASSURANCE AND COMPLAINCE
Conclusion
It is concluded from the analysis that in the recent years, there is growing importance
of the corporate governance to ensure sound financial reporting as well as detection of the
fraud. Auditor is the integral part of corporate governance and it is having the potential for
working with the governance actors in order for improving the quality of the process of
financial reporting. Corporate governance plays vital role in the monitoring, audit committee
and the emphasis of the independence of board of the directors of the company. It has been
analyzed that the primary driver of corporate governance of company viewed by the auditors
is management of the organization. Further, it has been found that the principles as well as
recommendations of ASX Corporate Governance Council serve as the benchmark for the
good corporate governance in Australia. Moreover, the analysis of Santos Limited has shown
that the company’s board reviews as well as update their policies of the corporate
governance, which continue for ensuring that they reflects best practices.
Conclusion
It is concluded from the analysis that in the recent years, there is growing importance
of the corporate governance to ensure sound financial reporting as well as detection of the
fraud. Auditor is the integral part of corporate governance and it is having the potential for
working with the governance actors in order for improving the quality of the process of
financial reporting. Corporate governance plays vital role in the monitoring, audit committee
and the emphasis of the independence of board of the directors of the company. It has been
analyzed that the primary driver of corporate governance of company viewed by the auditors
is management of the organization. Further, it has been found that the principles as well as
recommendations of ASX Corporate Governance Council serve as the benchmark for the
good corporate governance in Australia. Moreover, the analysis of Santos Limited has shown
that the company’s board reviews as well as update their policies of the corporate
governance, which continue for ensuring that they reflects best practices.
12AUDIT ASSURANCE AND COMPLAINCE
Reference
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13AUDIT ASSURANCE AND COMPLAINCE
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corporate governance principles. Pacific Accounting Review, 27(3), pp.373-392.
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Lama, T. and Anderson, W.W., 2015. Company characteristics and compliance with ASX
corporate governance principles. Pacific Accounting Review, 27(3), pp.373-392.
Miglani, S., Ahmed, K. and Henry, D., 2015. Voluntary corporate governance structure and
financial distress: Evidence from Australia. Journal of Contemporary Accounting &
Economics, 11(1), pp.18-30.
Nadeem, M., Zaman, R. and Saleem, I., 2017. Boardroom gender diversity and corporate
sustainability practices: Evidence from Australian Securities Exchange listed firms. Journal
of Cleaner Production, 149, pp.874-885.
Santos.com. (2019). Santos - Corporate Governance. [online] Available at:
https://www.santos.com/who-we-are/corporate-governance [Accessed 7 Sep. 2019].
Santos.com. 2019. [online] Available at: https://www.santos.com/media/4651/2018-annual-
report.pdf [Accessed 7 Sep. 2019].
Seamer, M., 2014. Does Effective Corporate Governance Facilitate Continuous Market
Disclosure?. Australian Accounting Review, 24(2), pp.111-126.
Swan, P., 2014. The ASX Governance Council and “independent” boards. Law and Financial
Markets Review, 8(3), pp.196-198.
Wu, H. and Patel, C., 2014. Adoption of Anglo-American models of corporate governance
and financial reporting in China. Emerald Group Publishing.
Xu, S., How, J. and Verhoeven, P., 2017. Corporate governance and private placement
issuance in Australia. Accounting & Finance, 57(3), pp.907-933.
Yarram, S.R., 2015. Corporate governance ratings and the dividend payout decisions of
Australian corporate firms. International Journal of Managerial Finance, 11(2), pp.162-178.
14AUDIT ASSURANCE AND COMPLAINCE
Young, S. and Thyil, V., 2014. Corporate social responsibility and corporate governance:
Role of context in international settings. Journal of Business Ethics, 122(1), pp.1-24.
Young, S. and Thyil, V., 2014. Corporate social responsibility and corporate governance:
Role of context in international settings. Journal of Business Ethics, 122(1), pp.1-24.
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