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Audit, Assurance & Compliance Assignment

   

Added on  2021-05-31

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Audit, Assurance & Compliance1
Audit, Assurance & Compliance Assignment_1

Executive SummaryBusiness corporations need to place special emphasis on developing and implementing asound and efficient governance structure to promote its sustainable growth and development.Also, they need to disclose materially accurate ad reliable financial statement to the end-usersthat can be used for decision-making. However, there are some risks that can cause materialmisstatements and need to be identified by the auditors accurately to minimize the chance ofoccurrence of nay material misstatement. The Auditing Standard., ASA 50, has provided theanalytical procedures to be used by entities for assessment of audit risk and the strategies usedfor their mitigation by the company. In this context, the report ahs carried out analysis ofcorporate governance structure of Holden Car, a subsidiary of parent Company General Motor asper ASX principles and discussed the risk assessment procedures for identifying audit risk.2
Audit, Assurance & Compliance Assignment_2

ContentsASX Corporate Governance Principles Compliance by General Motor........................................................4Developing Solid Framework for Management & Oversight...................................................................4Structure the Board to Add Value............................................................................................................5Ethical and Responsible Way of Acting....................................................................................................5Safeguarding Integrity in Corporate Reporting........................................................................................6Making Timely and Balanced Disclosure..................................................................................................6Respecting the Rights of Security Holders...............................................................................................6Risk Identification & Mitigation...............................................................................................................7Fair & Responsible Remuneration...........................................................................................................7Risk Assessment Procedures.......................................................................................................................7Nature of Company:........................................................................................................................7Market Overview.............................................................................................................................8Business Strategy.............................................................................................................................8Computation of Income Statement & Balance Sheet Ratio.....................................................................8Audit Risk & Its Mitigation.....................................................................................................................10References.................................................................................................................................................113
Audit, Assurance & Compliance Assignment_3

ASX Corporate Governance Principles Compliance by General MotorASX Corporate Governance Council ahs developed standard framework of corporategovernance to provide guidance to the business entities regarding the ways of carrying out theirbusiness operations as per the highest ethical standards (ASX Corporate Governance Council,2014). General Motor, an American multinational company involved in manufacturing anddistribution of vehicles and its associated parts also regularly develops and publishes itscorporate governance statement. The company has a manufacturing unit in Australia known asGM Holden Car manufacturing wide range of engineered models of it scars such as Suzuki,Toyota, Chevrolet and other car models. Thus, as the company operates in Australia andtherefore it is necessary to comply with ASX principles. The implications of the ASX CorporateGovernance Statement in developing an effective corporate structure in the company arediscussed as follows:Developing Solid Framework for Management & OversightThe company as per ASX principles and recommendations need to establish therespective roles and responsibilities of board and management. Also, there should be presence ofeffective processes and systems for evaluation of the performance of board and management(Fleckner and Hopt, 2013). General Motor has stated the mission and responsibilities of Board inits corporate governance statement. The board is the ultimate decision-making body of thecompany and also oversees the functionalizing of the senior management. There are distinct rolesand responsibilities of Board and management as per the corporate governance statement. Themanagement personnel are directly accountable to the Board and hold the responsibility ofmonitoring the day-to-day activities of the company. The performance of the Board is monitoredby the use of a self-assessment process that is governed by the governance committee and theChairman. The valuation of the performance is made on the basis of contribution of Board to thegrowth and development of the company (General Motors Company Board Of DirectorsCorporate Governance Guidelines, 2018). The performance of the management is reviewed bythe Board on an annul basis at the time of determining their remuneration. Therefore, it can besaid after analyzing the board and management foundations in the company that its governancepolicies is similar to that of ASX Council principle and recommendations (Plessis, McConvilland Bagaric, 2005).4
Audit, Assurance & Compliance Assignment_4

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