Audit Assurance and Compliance

Running Head: AUDIT ASSURANCE AND COMPLAINCE
AUDIT ASSURANCE AND COMPLAINCE
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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

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

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