Audit, Assurance and Compliance: Analysis of Auditor's Report of Oz Minerals

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
Name of the Student
Name of the University
Author’s Note

1AUDIT, ASSURANCE AND COMPLIANCE
Executive Summary
The main aim of the report is the analysis of the roles and responsibilities of the auditors
in the process to enhance the audit report quality. More specifically, this report takes attempt
for the analysis and inspection of the auditor’s report of one of the major companies of
Australia, Oz Minerals. The report puts emphasis on some of the major aspects like the
independence of the auditors, materiality assessment of the auditors and others. This report
also takes into account the analysis of the remuneration of the auditors of Oz Minerals for the
year 2017 and 2016. Most importantly, the report takes into account the assessment of the key
audit matters of Oz Minerals by the auditors. Thus, this report can be considered as a major
study for analyzing the effectiveness of auditors in enhancing the audit report.

2AUDIT, ASSURANCE AND COMPLIANCE
Table of Contents
Introduction................................................................................................................................... 3
Auditors’ Independence Requirement...........................................................................................3
Non-Audit Services........................................................................................................................ 4
Auditor’s Remuneration................................................................................................................ 4
Key Audit Matters.......................................................................................................................... 6
Audit Committee........................................................................................................................... 8
Audit Opinion.................................................................................................................................8
Difference between Responsibilities..............................................................................................9
Material Subsequent Events..........................................................................................................9
Analysis of the Material Information by the Auditors....................................................................9
Material Information Missing......................................................................................................10
Follow-up Questions....................................................................................................................10
Conclusion................................................................................................................................... 11
References................................................................................................................................... 12

3AUDIT, ASSURANCE AND COMPLIANCE
Introduction
Potential investors and the other users of the financial statements consider the report
of the auditors as a major tool for judging the truthfulness as well as fairness of various
financial reports as the auditors provide their analytical judgments on the fact that whether
there is any material misstatements in the financial statements of the audit clients or not
(Parker, 2013). The quality of the audit reports largely depends on the consideration of the
material issues in the financial statements of the companies by the auditors. For this reason,
the quality of the audit reports has become a major issue to the audit regulations setters. It can
be seen that there have been major initiative taken in the recent years for the enhancement of
the quality of the audit reports (Ferguson, Pinnuck & Skinner, 2016). These initiatives have
increased the responsibility of both the companies and the auditors as it has become necessary
for the companies and the auditors to report about the major key audit matters in the auditor’s
report so that the investors and other users can know about them. An extra responsibility for
the auditors is to take into consideration all the relevant material issue at the time to assess the
financial statements. The report aims at the analysis of the role and responsibility of the
auditors from the 2017 annual report of Oz Minerals.
Auditors’ Independence Requirement
Taking into consideration all the requirements of auditor’s responsibility is a prime
success factor in the audit profession. The 2017 annual report of Oz Minerals states that KPMG,
the audit partner of Oz Minerals for the year 2017, has followed the standards of Section 307C
of the Corporations Act 2001 in order to maintain auditor’s independence (ozminerals.com,