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Audit Assurance & Compliance Assignment

   

Added on  2021-06-17

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Audit Assurance & Compliance
Audit Assurance & Compliance Assignment_1
Executive SummaryThis report is developed for providing an analysis of the corporate governance principlesand risk assessment framework used by a business entity listed on ASX (Australian SecuritiesExchange). The standard corporate governance principles and recommendation developed by theASX Council need to be adopted by all the business companies that are listed on the stockexchange within Australia. As such, the report has examined the corporate governance statementof OZ Minerals, listed on ASX, to identify whether it effectively comply with the standards ornot. It has been identified after the analysis that the company has effectively complied with allthe governance policies and framework of ASX. Also, as per ASA 50 it ha been found out thatthere are some audit risk present within the company that it has effectively mitigated with theimplementation of suitable strategies.
Audit Assurance & Compliance Assignment_2
ContentsASX Corporate Governance Principles.........................................................................................................4Developing Solid Framework for Management & Oversight...................................................................4Structure of Board to Add Value..............................................................................................................4Ethical and Responsible Way of Acting....................................................................................................5Safeguard Integrity in Corporate Reporting.............................................................................................5Making Timely and Balanced Disclosure..................................................................................................6Protection of Rights of Security Holders..................................................................................................6Risk Identification & Management..........................................................................................................6Fair & Responsible Remuneration...........................................................................................................7Risk Assessment Procedures.......................................................................................................................7Nature of Company.................................................................................................................................7Market Overview.....................................................................................................................................7Business Strategy.....................................................................................................................................8Computation of Income Sheet & Balance Sheet Ratios...........................................................................8Audit Risk & Its mitigation.......................................................................................................................9References.................................................................................................................................................11
Audit Assurance & Compliance Assignment_3
ASX Corporate Governance PrinciplesThe development of sound and effective corporate governance policies is very essentialfor the sustainable growth and success of a business entity. This is because the policies provideguidelines to all the people working within the entity about the type of business processes andpractices. The directions for carrying out the business processes are provided with the help ofcorporate governance policies and frameworks. As such, the ASX Corporate GovernanceCouncil has developed an effective corporate governance statement on the basis of somestandard principle and recommendations (Nordberg, 2010). The corporate governance statementdeveloped by Council need to be followed by all the business entities listed on ASX. OZMinerals, listed on ASX, also need to develop its corporate governance statement as per theCouncil principles and recommendations that are analyzed as follows:Developing Solid Framework for Management & OversightThe Council has stated that business entities listed on ASX need to provide an adequatedisclosure about the roles and responsibilities of Board and management in its corporategovernance statement. OZ Minerals, in its corporate governance statement has adequately statedabout the Board and management roles (ASX Corporate Governance Council, 2014). The Boardis held responsible for managing the overall strategic actions of the company. Board Charter, hasprovided a detailed explanation regarding the roles and responsibilities of the members and alsothat of Executive Management Committee (EXCO). The values, principles, belifes andorgnaistional culture are established by the Board while EXCO carries out is roles as per theguidance of Board and its committees. Board has also specifically developed a DelegatedAuthorities Manual for providing a disclosure regarding the scope of board and the managementcommittee. Directors also hold the responsibility of being updated about the pertinent issuesfacing the company such as regulatory compliance so that it does not impact its sustainablegrowth and development. As per ASX principle, the company has also disclosed the procedures adopted forreviewing the performance and management. Board develops a monthly performance report andsubmits it to the directors for reviewing the performance of the board members on yearly basis.The review process is led by the Chairman and is carried out in consultation with the external
Audit Assurance & Compliance Assignment_4

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