Audit, Assurance and Compliance

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
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1AUDIT, ASSURANCE AND COMPLIANCE
Executive Summary:
Assessment mainly evaluates the ethical dilemmas that are faced by auditors while preparing the
annual report of an organization. Moreover, the analysis is based on the methods and different
level of measures that can be taken by the audit committee for reducing the unethical conduct of
an auditor. Furthermore, the lessons that have been learnt from the Enron case has been
discussed which is essential for the audit committee to comply in future. The identified lessons
would eventually help the audit committee to improve the current Audit procedures and impose
different incentives to improve the audit quality. Adequate evaluation on the Enron scandal has
been conducted to identify the lessons that can be learnt by the auditor is regarding the problems
and behavior of Anderson. Moreover, the discussion on the product quality and warning that has
been mentioned by Greg Medcraft has been analyzed for detecting the measures that can be
taken by the auditor to improve the audit quality. Enron scandal has been a major contributor to
the measures that can be used by the auditors for minimizing the negative impact of material
misstatement in financial reports.

2AUDIT, ASSURANCE AND COMPLIANCE
Table of Content
Introduction:....................................................................................................................................3
1. Performing a key stakeholder analysis for the ASX listed company:.........................................3
1.1 Discussing about the impact of material misstatement on key stakeholders:............................4
1.2 Identifying the key risk posted to each key stakeholders that has been identified:...................4
2. Considering the concepts of independence and whistleblowing with APES 110 Code of Ethics
for Professional Accountants document:.........................................................................................5
3. Identifying the lesson that will be learnt by auditors from Enron scandal and Arthur Anderson
behaviour:........................................................................................................................................7
4. Discussing about audit quality and warning mentioned by Greg Medcraft:.............................10
Conclusion:....................................................................................................................................13
References and Bibliography:........................................................................................................14

3AUDIT, ASSURANCE AND COMPLIANCE
Introduction:
The assessment aims in evaluating the measures that can be used by the auditor's for
minimizing the negative impact from material misstatement in the financial reports of
organization. Auditor report directly or shows the stakeholders of the organization regarding the
current productivity and truthfulness of the financial information presented in the annual report.
Adequate evaluation regarding the consequence of Material misstatement on the financial report
is discussed for the key stakeholders of an organization. Furthermore, the concept of
whistleblowing is relatively compared with the APES 110 Code of Ethics for Professional
Accountants Document. Adequate evaluation on the Enron scandal has been conducted to
identify the lessons that can be learnt by the auditor is regarding the problems and behavior of
Anderson. Moreover, the discussion on the product quality and warning that has been mentioned
by Greg Medcraft has been analyzed for detecting the measures that can be taken by the auditor
to improve the audit quality. Enron scandal has been a major contributor to the measures that can
be used by the auditors for minimizing the negative impact of material misstatement in financial
reports.
1. Performing a key stakeholder analysis for the ASX listed company:
After analysing the financial report and current stakeholders of CSR Limited, it could be
identified that the major stakeholders of the organisation our investors, suppliers, and business
partners. The stakeholder’s analysis directly helps in identifying the interest of stakeholders
versus the influence of the stakeholders. The stakeholder analysis allows an organisation to
understand the impact stakeholders can have on its operations. The stakeholder analysis of CSR