Audit, Assurance and Compliance- PDF

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
Name of the Student
Name of the University
Author’s Note

AUDIT, ASSURANCE AND COMPLIANCE1
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................2
ASX Corporate Governance Principles...........................................................................................3
Risk Assessment..............................................................................................................................8
Nature and Market Overview......................................................................................................8
Regulatory Authority and Strategy..............................................................................................9
Relevant Risks...........................................................................................................................10
Steps to Reduce Risks................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

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Introduction
The report is focussed on offering an effective attempt in evaluating the corporate
governance compliance principles related with ASX (ASX CGC) within Treasury Wine Estates.
Along with that, the report intends to recognise the key business along with audit risk of the
company as well as the methods to deal with such risks (Abs.gov.au. 2018). Treasury Wine
Estates is a renowned Australian organization that has its business operation within wine
production, marketing, selling and distribution. The first section of the report indicates the
compliance of Treasury Wines Estates with the principles of ASX CGC and the findings
indicates the overall compliance of the company with such principles. The section of the report
indicates the details related with regulatory surrounding, industry overview along with the
company’s strategies (Albu, Albu and Alexander 2014). The last section of the report
encompasses in proposition of certain analytical techniques for the risk reduction.
Auditing can be explained as the process to analyse the financial statements of business
organizations for recognising certain material misstatements in them. At the time of statement
auditing, the auditors have responsibility in considering the key risk related with material
misstatement along with taking vital steps for decreasing them (Asx.com.au., 2018). In addition,
Australian Security Exchange (ASX) has offered the organizations with certain principles for
implementing better mechanism of corporate governance. All the ASX listed organizations are
required to comply with such ASX corporate governance principles. The report focussed on
analysing the adherence of AS CGC risk evaluation process along with principles of one of the
major ASX listed organizations. For this report, Wine Treasury Estates is selected. The major
objective of the wine company is to serve the Australian consumers through sustaining a low-
cost production facility with better distribution network.

AUDIT, ASSURANCE AND COMPLIANCE3
Corporate Governance Principles of ASX
ASX introduced the “Corporate Governance Council Principles” along with necessary
recommendations for facilitating the organizations in focussing greatly on their corporate
governance practices (Auasb.gov.au., 2018). The similar feature can be observed in case of Wine
Treasury Estates as the organization is also is required to abide by the ASX CGS standard. The
discussion below indicates implementation of ASX CGC principles related with Wine Treasury
Estates Company:
Principle 1: Based on this principle, the organizations must establish as well as
disclosing responsibility and roles of the board along with management (Auasb.gov.au. 2018).
This also ensures the ways in which the organization measure and maintain performance
monitoring.
(Source: Austrade.gov.au. 2018)
The discussion above indicated that Wine Treasury Estates has maintained roles and
responsibilities meant for the company’s board. Along with that, the organization employs
balanced scorecard as annual key performance indicator for measuring and monitoring their
performance.
Principle 2: The organizations must have boards of suitable size, skills, commitment along with
composition for fulfilling all their responsibilities (Brown, Preiato and Tarca 2014). Based on the