Audit, Assurance and Compliance in Australia Stock Exchange Listed Companies

Audit, Assurance and Compliance
1

Executive Summary
This report is meant to highlight how companies listed in Australia Stock Exchange
conform to auditing standards. The report elaborates on auditing requirements and
reporting which is aimed at enhancing the transparency in financial reporting. The report
will touch on various issues including auditors opinion, auditors remuneration, the roles
and responsibilities of auditors and the management just to mention a few.
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Background of the Report............................................................................................................3
Scope of the Report.....................................................................................................................3
2

Discussion........................................................................................................................................4
1) Auditor’s Independence Declaration................................................................................4
2) Independent auditor’s opinion..........................................................................................5
3) Non-Audit services performed by the Auditor.................................................................5
4) Auditors’ Remuneration....................................................................................................6
5) Role, functions and composition of the Audit Committee................................................7
6) Independent Auditors report to the shareholders..............................................................7
7) Review all Key Audit Matters..........................................................................................8
Conclusion.......................................................................................................................................9
References........................................................................................................................................9
3

Introduction
Background of the Report
The main purpose of audit reporting is to enhance transparency. The audit report targeted the
annual report of Altium limited so as to ascertain the conformance of that annual report to the set
standards. The audit report will be of use to all the stakeholders, both internal and external, with
regards to making prudent decisions going forward
Scope of the Report
This report is mainly aimed at analyzing various aspects as pertaining to audit reporting. The
report will mainly touch on seven key issues namely; Auditor’s Independence Declaration;
Independent Auditor’s Report; The report will also highlight the Non-audit services which are
performed by the auditor; Auditor’s Remuneration as per the financial statement; Audit
Committee, its makeup, roles and functions; Independent Auditor’s Report to the shareholders
and lastly the analysis of Key Audit issues. The report will focus on Altium Limited which is an
American based software company
Discussion
As earlier indicated, Altium Limited is an American based company, listed in the Australia stock
exchange (ASX). The company is a renowned software producer mainly specialized in PC-based
electronic design software (Altium Limited, 2018). By virtue of the organization being listed in
the ASX, it has to adhere to strict guidelines and conformance to quality standard auditing
reporting system it is through the evaluation of the financial annual report that one can be able to
ascertain whether the guidelines and standards of auditing have been followed.
1) Auditor’s Independence Declaration
The primary law that stipulates and governs the compliance of audit processes and reporting is
the Corporations Act, 2001(CCH Australia Limited, 2011). The conduct, rules and procedures of
how an auditor carries out his mandate is described in that act. The act also stipulates the
responsibilities of the management in facilitating the auditor when performing his tasks. The law
actually prohibits the interference of the management in the auditing process.
The issue of ethical considerations which governs the auditor has also been captured in the act,
where it stipulates that an auditor or the auditing committee for that matter is supposed to
produce an unbiased, professional and independent report. At times, there is a high likely hood
4