Audit and Assurance Program of Flight Centre Travel Group Limited

HI6026 Audit,
Assurance and
Compliance
Trimester 2 2018
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EXECUTIVE SUMMARY
This report emphasises upon the audit and assurance program of the auditors which
assists in increasing the overall effectiveness of the financial statement of company. The
auditors, independences, assurance, responsibilities and auditors opinion have been given on
the financial statement of Flight Centre Travel Group Limited. Ernst & Young has given non-
qualified audit report on the financial statement of company and shown that company has
complied with the applicable international financial accounting standards. The Ernst &
Young has also declared that company will be sustainable in long run. The auditor of Flight
Centre Travel Group Limited has also provided non-audit services to company apart from the
audit services and all the transactions of the non-audit services have been placed at arm
length price. The compliance program of company is effective and auditor’s opinion has
shown the positive implication on the financial and legal sustainability of company in long
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Table of Contents
EXECUTIVE SUMMARY...................................................................................................................2
INTRODUCTION.................................................................................................................................3
Independence of the auditors.................................................................................................................4
PROVISION OF NON-AUDIT SERVICES.........................................................................................4
AUDITER REMUNERATION.............................................................................................................5
KEY AUDIT MATTERS......................................................................................................................6
AUDIT COMMITTEE & AUDIT CHARTER.....................................................................................7
STRUCTURE........................................................................................................................................7
Auditor’s functions and responsibilities................................................................................................8
AUDIT OPINION.................................................................................................................................9
Difference of Responsibility.................................................................................................................10
Responsibility of director.................................................................................................................10
RESPONSIBILITY of auditor..............................................................................................................10
MATERIAL SUBSEQUENT EVENTS........................................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................13
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INTRODUCTION
In recent times, it has become important for a company to assure that it operates its
activities transparently. Transparently into the business activities can lead to trust and
confidence on the part of stakeholders. All the information regarding the company is revealed
to its stakeholders through the Annual report. The one important information includes the
details of audit functions which will be undertaken by Ernst Young for setting up strong audit
and assurance program for the financial statement of company. The annual report has the
information of auditors, their remuneration system, and any non-audit services if provided by
auditor to the company. The report also has the information regarding the formation of audit
committee with the audit charter and the perception that each auditor. The opinion of the
auditor suggests improving or enhancing the profitability of the organisation. This report
brings out the discussion of independence of auditors, their responsibility, non-audit services,
and other auditor functions to know the material details of key audit matters of Flight Centre
Travel Group Limited. This report has also shown the key understanding on the auditor’s
independence and their responsibilities for setting up strong audit and assurance program
(Flight Centre Travel Group Limited, 2018).
Independence of the auditors
The auditor of Company is Ernst & Young who has been offering audit and assurance
services. The auditors have announced their independent declaration to acknowledge the
report of audit to the management of Flight Travel Limited. The auditors have stated that they
never tried to intervene and disturb the regulation imposed on them by the Corporation Act,
2001. Moreover, the auditors neither contravene the code of professional conduct nor their
independence as per stated in the Act. The key function of auditors is to reflect the
compliance program that is stated in the audit report of the company. Flight Centre Travel
Group limited appointed the audit committee to analyse the fair value of assets and liabilities
regardless of undervaluation recorded in the financial statement of the company (Flight
Centre Travel Group Limited, 2015).
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