Audit, Assurance and Compliance- Assignment
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Added on 2020-10-22
Audit, Assurance and Compliance- Assignment
Added on 2020-10-22
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Audit, Assurance andCompliance
Executive SummaryAudit can be referred as an official examination of financial statements of enterprise inorder to ensure that all the records are accurate and transactions are represented fairly thatcompany claims to depict. Assurance audits concerns on substantiating to financial statementsbut at the same time compliance audit emphasize on adherence to admissible regulations, lawsand technical standards. BHC Billiton Limited is an Anglo-Australian multinational companywhich deals in petroleum, mining and metals sector. This report helps in analysing howimproved auditor reporting is being embraced in Australia. For this, various aspects are coveredin this report including Auditor's independent declaration and report, their remuneration, non-audit services performed by auditor, roles, composition and functions of audit committee aswell as review of all key audit matters and associated procedures. All these components help inanalysing financial performance or position of BHC Billiton.
Table of ContentsExecutive Summary..........................................................................................................................2INTRODUCTION................................................................................................................................1TASK.................................................................................................................................................1Has the auditor complied with Independence requirements?..............................................1Nature of non audit services provided by BHP Billiton Limited.............................................1Analysis of Auditor's remuneration........................................................................................2Key audit matters and their audit procedur...........................................................................3Existence of Audit committee, non-executive directors, audit committee charter and mainpoints included in it................................................................................................................6Type of audit opinion expressed............................................................................................7How do management and director's responsibilities differs from auditor's responsibilities inrelation to financial report.....................................................................................................8Existence of material subsequent events and the way they were treated...........................9Assessment of effectiveness of material information reported by an auditor....................10Whether any material information could be missing or not fully disclosed or explained in aneffective way for intended users..........................................................................................10Follow up questions to ask the auditor at annual general meeting of firm.........................10CONCLUSION..................................................................................................................................11REFERENCES...................................................................................................................................12
INTRODUCTIONAudit is an independent and systematic examination of statutory records, books,documents, accounts or financial statements of company to ensure that records are accurateand fair representations of transactions that firm claim to show (Anderson and et. al., 2012). Inthe present assignment, chosen organisation is BHP Billiton Limited which is an Anglo-Australian multinational petroleum, mining and metals firm headquartered in Melbourne,Australia. This report is based on how enhanced auditor reporting being embraced in Australiaunder which various aspects are covered including Auditor's independent deceleration andreport, their remuneration, roles, composition and functions of audit committee, non-auditservices performed by auditor as well as review of all key audit matters and associatedprocedures. TASKTopic: How is Enhanced Auditor Reporting being embraced in Australia?Has the auditor complied with Independence requirements?As per the lead auditor's independence declaration under section 307C of AustralianCorporations Act 2001, the auditor complied with independence requirements (Bepari andMollik, 2015). In the audit of BHP Billiton for financial year ended June 30, 2017, nocontraventions have been there about independence requirements of auditors as set out inAustralian Corporations Act, 2001 regarding the audit. There are no such contraventions relatedwith professional code of conduct.Nature of non audit services provided by BHP Billiton LimitedThe non audit services initiated by external auditor of BHP includes services which areset out in note 36 'Auditor's remuneration' in section 5. All the non audit services provided byfirm were accepted according to the set out processes in policy on audit provision and externalauditor's additional services. Administrations which are excluded by audit are not carried out(Bhensook and Senivongse, 2012). On the basis of advice that are provided through risk andaudit committee, a view have formed by directors that non audit services provision is well-1
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