Audit and Ethics: Analyzing Alumina Limited's Financial Statements

Running head: Audit and Ethics
Audit and Ethics
Name of the Student
Name of the University
Author Note

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Audit and Ethics
Executive Summary
The report include about the concept of the audit and ethics. Audit is the process of
examination of the company financial statement and checks whether the financial statement
are showing true and fair view or not. Ethics are the norms which are made by the company
in related to the employees so that it can able to make the business smoothly. The report also
contain about the company name Alumina Limited and consist about it materiality and going
concern concept. It also contains about analytical review of the company and show how the
auditor check the risk associated in the financial statement with the help of the analytical
review. It also contains an analysis of the company cash flow statement and show which
items have most cash inflow and outflow.

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Audit and Ethics
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Overview of the company......................................................................................................3
Materiality in Financial Reporting.........................................................................................4
Qualitative approach of the Materiality.................................................................................4
Quantitative Aspects of the Materiality.................................................................................5
Cash Flow Analysis of the Company.....................................................................................8
Auditor opinion in the annual report......................................................................................9
Conclusion..................................................................................................................................9
Reference and Bibliography.....................................................................................................11

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Audit and Ethics
Introduction
Auditing is a process which is been carried by an individual who check the financial
statement of the company and say whether the company financial statement are showing true
and fair view or not (Crigger and Godfrey 2014). This process helps the financial user to
know how the company is performing in the industry and what its growth rate in the industry
is. Audited financial statement help the company to get the confidents of the investors and
other financial users as it is a proof that all the business activity which the company carry are
fair and no fraud is been taken place in the company(D. Carnegie 2014). The auditor do many
test of control and check check each area of the company where the business is concern so
that it can able to judge whether the financial statement have some material misstatement or
not. It also check the internal control of the company and how the company manages its
internal control process as a whole. If the internal control of the company is weak than it
means there will be high risk in the financial statement of the company.
On the other hand ethics are the professional behaviour which every person should
follow while doing their work (Davies 2016). Each organization make some standard for their
employees to follow so that each individual will able to do their work properly as if there will
be some set of principles than it will be easy for the company to run their business smoothly
and effectively. It help the company to achieve its goals more easily as if all the work of the
company will be done in a systematic way than it will able to get the required result easily
and help them to achieve the business goals of the company.
Discussion
Overview of the company
The assignment is been based upon the company name Alumina Limited. The
company was found in 23 by the demerger of a big company name Western Mining