Audit, Assurance and Compliance

AUDIT, ASSURANCE AND
COMPLIANCE

EXECUTIVE SUMMARY
Auditing is an important process that is required to be conducted by the entities for
ensuring that their financial statements are free from errors and misstatements. Audit committee
has significant role to play for ensuring that the corporate reporting process is transparent and
free from misstatements. For ensuring integrity ASX has laid corporate governance principles
and recommendations to comply by the organisation for having good outcomes.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
TABLE OF CONTENTS................................................................................................................3
INTRODUTION..............................................................................................................................1
REPORT..........................................................................................................................................1
a) Role of Audit Committee........................................................................................................1
b) Application of ASX Corporate Governance Principles..........................................................3
c) Compliance issue with the current structure of the company..................................................4
d) Corporate governance principle breached by Edward............................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUTION
Auditing refers to the process of examining the financial records of the enterprise for
ensuring that they are free from errors and material misstatements. Auditing ensures that the
financial information provided to the external user is accurate and not misstated. Corporate
governance involves establishing internal controls to ensure that the errors and frauds are not
committed in the company. Present report is based over auditing, assurance and corporate
governance. The report addresses the role of audit committee and corporate governance
principles laid by ASX for entities to comply.
REPORT
a) Role of Audit Committee
Ensuring the integrity and transparency of corporate reporting
Audit quality is essential to be ensured by the companies for making the investors
informed and confident when making the investment decisions. Audit quality refers to matter
that affect ability of auditor to achieve the fundamental objective of the audit. it requires
reasonable assurance that the financial statements of the company are free from errors and
material misstatements
Audit Committee is committee of board of directors which focuses over the issues
relevant to integrity of financial reporting of company. Listing rules of ASX requires the
specified listed companies of having the audit committee. Other entities may also choose for
having an audit committee. Existence of the audit committees do not alter requirement for
directors to take their responsibility for the financial reporting processes (Mihret and Grant,
2017). Audit committees could play a significant role in financial reporting and promoting the
audit quality.
Auditor gives independent opinion which follows after opinion of director on financial
report. Company is required to have own processes, systems and controls and the appropriate
resources for producing high quality of financial reports. Directors should not rely over the
auditor when forming own opinion over financial report. This will undermine objective of the
audit as they are required to provide an independent assurance to the users of financial reports.
Audit committees must raise concerns regarding the audit quality which are not resolved
satisfactorily with auditor with board. Audit committees can seek advice from the ASIC where
appropriate and needed.
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