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Assurance, Audit and Compliance - Milton

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Added on  2020-10-22

Assurance, Audit and Compliance - Milton

   Added on 2020-10-22

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AUDIT, ASSURANCE ANDCOMPLIANCE
Assurance, Audit and Compliance - Milton_1
EXECUTIVE SUMMARYAuditing is referred as process for examining and business's financial record fordetermining level of accuracy as per applicable rules, laws along with regulation. The presentreport will be discussing concepts of auditing with context of Milton Corporation Limited. It willbe performing stakeholder analysis along with concepts of independence and whistle-blowing onbasis of auditors. In the similar aspect, it had reflected that concepts of independence andwhistle-blowing with context of auditors are highly essential on basis of public interestrequirements. Further, it had been articulated from Enron scandal that financial statementsshould be always appropriate and contained with actual financial position.
Assurance, Audit and Compliance - Milton_2
TABLE OF CONTENTSEXECUTIVE SUMMARY.............................................................................................................2INTRODUCTION...........................................................................................................................11. Performing key stakeholder analysis with impact on material misstatements and risk posedto every stakeholder................................................................................................................12. Concepts of independence and whistle-blowing related to APES 110 Code of ethics ofprofessional accountants.........................................................................................................23. Lessons learnt through auditors via Enron scandal with behaviour of Arthur Andersen...44. Audit quality with context of APES 110 Code of ethics for professional Accountant andASIC and discussing about warning stated by Greg Medcraft...............................................6CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
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INTRODUCTIONAuditing is considered as process for examining and business's financial record foridentifying about accuracy as per applicable rules, laws along with regulation. In the similaraspect, assurance services are included in activities of audit which gives objective, independentassessment of compliance efforts. Its main objective is about assuring management, board andregulators for accuracy of financial statements, operations performed with applicability ofregulations and policies. In the same series, audit compliance is replicated as comprehensivereview of adherence to business with context of regulatory guidelines. The present report will bediscussing concepts of auditing with context of Milton Corporation Limited. It will beperforming stakeholder analysis along with concepts of independence and whistle-blowing onbasis of auditors. This report will be presenting lessons which are attained through Enron scandaland with reference to APES 110 Code of Ethics and ASIC, audit quality will be discussed.1. Performing key stakeholder analysis with impact on material misstatements and risk posed toevery stakeholderThe stakeholders of organization are highly involved in each activities as they are alwaysconsidered for attaining project objectives whose support and participation is highly crucial forsuccess. Stakeholders analysis is very important technique for determining stakeholder and toanalyse its needs. Generally, it identifies stakeholders who vested interest in issues aboutobjective of Milton corporation Limited. The main stakeholders of company are its employees,competitors, auditors, customers, CEO: B.J. O'DEA and Managing director: F.G Gooch (Annualreport of Milton Corporation, 2019). The auditors face with dilemma on basis of inferringmateriality where level of financial misstatements would impact decisions of users of statements.Misstatements in information of accounting which are under materiality threshold are notexpected for altering assessments of users with context of economic condition of MiltonCorporation Limited.During acceptance by auditing profession with concept of materiality, its application inpractice is highly controversial. In various settings, nature of misstatement like less margin into alight will impact materiality judgement of auditor. On the contrary, multiple cases of magnitudeof misstatement is critical factor for judging materiality (Consideration of Fraud in a FinancialStatement Audit, 2019). If there is absence of any wrong doing or with very less frequency of1
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