Audit, Assurance, and Compliance PDF

Running Head: AUDIT, ASSURANCE, AND COMPLIANCE
Audit, Assurance, and Compliance
[Name]
[Name of the institution]

Audit, Assurance, and Compliance 1
Executive Summary
The ratios of the organisation identify that equity financing was focused on which
could increase the risk of dilution and subsequently, the debt of the organisation ought
to be utilised in the future. Part A of the report is the financial analysis of the
organisation identifying that it requires diminishing its expense. To make the company
be able to easily make payments against principal and interest in the future, the cash or
cost expense of the operating activities within organisation should be diminished. The
Part B of the report is inclusive of information that reveals how International Financial
Reporting Standards have made the audit committee’s duty to guarantee uprightness
and straightforwardness in the advancement of financial reports. The report also shows
that the members of AGL have capabilities in tremendous fields that could act as an
effective source in improving the corporate administration of an association. The audit
committee suitably meets the rules given by ASX and in this way, the viability of the
audit committee is significant.

Audit, Assurance, and Compliance 2
Table of Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Part A........................................................................................................................................................... 3
Part B (1)......................................................................................................................................................7
The Role of Auditor in Maintaining Transparency and Integrity..................................................................7
Effectiveness of Audit Committee and Audit Quality...............................................................................9
Part B (2).................................................................................................................................................... 10
Independence of the Audit Committee.................................................................................................10
Industry Knowledge of the Audit Committee........................................................................................11
Qualifications of the Audit Committee Members..................................................................................12
Size and Member Profile of Audit Committee.......................................................................................12
The Meeting organized by the Chairman of the Audit Committee........................................................12
Compliance Monitoring by the Audit Committee..................................................................................13
Conclusion................................................................................................................................................. 14
References.................................................................................................................................................15

Audit, Assurance, and Compliance 3
Introduction
From ASX 300, the company AGL Energy limited is chosen and an
examination of this organisation is carried out. Furthermore, relation to the risks and
factors of auditing along with ratio analysis, which has influenced the evaluation of
financial report data, has been examined. The report also consists of a table underneath
that shows examination done by utilising and considering balance sheet, statement of
income, statement of cash flow.
Part A
Statement of Income 2019 2018 Outlining the data
as highlighted in
the statement of
income, it can be
pointed out that
materiality risk is
Gross margin of Profit = Gross Profit/Sales*100 28.937 29.6114
The gross margin of profit is determined by partitioning gross from net sales
which determines that the accomplished in net profit. The net profit of the
organisation showed an increment as it was $3,795 and changed to $3,833
million in the year 2019. The figures featured above shows that out of the
sales, the organisation have acquired 28.9% of gross benefit, which was
higher in the year 2018. Furthermore, the process of manufacturing ought to
be fundamentally observed by the producers to notice regions which can be
altered for cost saving targets ( Zou et al., 2021, p3(1)). The sales cost can
be anticipated as 71% of the overall sales. The organisation’s sales cost
showed an increment of $9070 to $9440 million.
Overall Margin of Profit = Overall
Profit/Sales*100
7.85143 7.9432
The net and overall margin of profit was higher in 2018 as it was 7.9% and