Audit and Assurance Report of ADX Energy Limited

Running Head: Audit, Assurance and Compliance
Auditing and Assurance

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Executive summary
This report presents the audit and assurance related matters related to an Australian entity
named as ADX Energy Limited. The company deals in oil, gases and metal exploration
operations. The report covers discusses about the degree of independence exercised by the
company’s auditor and it has been found that the auditors has independently provided the
audit opinion on company’s financial performance. Apart from providing the audit opinion,
the auditor has not provided any non-audit services to ADX Ltd. The report further provides
insights on the auditor’s remuneration in the last two years and discusses the key audit
matters (KAM) identified by them during the financial year. The auditor has reported cash
component as the KAM. Further, it has been observed that company has no audit committee.
The basic objective of appointment of auditor is to enable him to provide an opinion on
company’s financial statements and auditor has issued unqualified opinion about entity’s
financial statements. However, it is the responsibility of directors to prepare and present the
financial statements. Therefore, auditor cannot be expected to find all the misstatements
contained in the financial statements. Further, the report has identified certain subsequent
events which have occurred after balance sheet but before the approval of financial accounts
of company. After reviewing the audit report, it has been found that the auditor has
effectively disclosed the material information as relevant to the external stakeholders.

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Table of Contents
Executive summary..................................................................................................................................2
Introduction:.............................................................................................................................................5
Auditor’s Independence:..........................................................................................................................5
Non-audit services by auditor:.................................................................................................................5
Auditor’s remuneration:...........................................................................................................................6
Key audit matters reporting by auditor:...................................................................................................7
Audit Committee:....................................................................................................................................8
Auditor’s Opinion:...................................................................................................................................9
Difference in the responsibility of directors and auditors of the company in respect of annual reports: 9
Director’s Responsibility:..................................................................................................................10
Auditor’s Responsibility:...................................................................................................................10
Subsequent Events:..............................................................................................................................11
Disclosure of material information by auditor:......................................................................................12
Conclusion:............................................................................................................................................13
References:.............................................................................................................................................14