Audit, Assurance and Compliance in CSR Limited

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
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1AUDIT, ASSURANCE AND COMPLIANCE
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

2AUDIT, ASSURANCE AND COMPLIANCE
Executive Summary
This report takes an honest attempt to analyze the compliance of corporate governance
related principles of ASX (ASX CGC) in CSR Limited. At the same time, the report aims to
identify the major business as well as audit risk of CSR Limited along with the procedures to
mitigate these risks. CSR Limited is a major Australian company operates in the building
material industry of Australia. The first part of the report shows the compliance of CSR Limited
with the ASX CGC principles and the results shows the full compliance of CSR Limited with
these principles. The next part of the report shows the details of the regulatory environment,
industry overview and strategies of CSR Limited. After this part, the study involves in the
identification of the major risks in the company and the analysis shows the presence of some of
the major risks of business in CSR Limited. The last part of the report involves in the proposition
of some analytical procedures for the reduction of risks.
Introduction
Auditing is the process to examine the financial statements of the business entities in
order to find out any material missstements in them. While auditing the statements, the
responsibility of the auditors is to take into consideration the major risks of material
misstatements and to take necessary steps to reduce them. On the other hand, Australian Security
Exchange (ASX) has provided the companies with eight principles in order to implement
effective corporate governance mechanism (asx.com.au 2018). All the ASX listed companies are
needed to comply with these principles of ASX corporate governance (ASX CGC). The
objective of this report is to analyze the compliance of ASX CGC principles and risk assessment
process of one of the ASX listed companies. For this report, CSR Limited is chosen. CSR

3AUDIT, ASSURANCE AND COMPLIANCE
Limited is an Australian company involves in the production of building products and materials.
The main business objective of CSR Limited is to serve he customers of Australia and New
Zealand by maintaining a low cost manufacturing facility along with strong distribution network
(csr.com.au 2018).
ASX Corporate Governance Principles
In the year 2003, ASX introduced the Corporate Governance Council Principles and
Recommendations in order to make the companies put focus on the corporate governance
practices in the companies. The same aspect can be seen in CSR Limited as the company is also
needed to comply with the standards of ASX CGC. The following discussion shows the
implementation of ASX CGC principles by CSR Limited:
Principle 1: As per this principle, companies should establish and disclose roles and
responsibility of board and management and how the company measure and monitor their
performance (asx.com.au 2018).