Audit Planning Requirements for Murray River Organics

ASSIGNMENT
BAO3306 AUDITING
REPORT
Semester 2, 2018

1. Executive summary
The report prepared below highlights the need of audit and assurance work that is
required at the basic level nowadays in any corporate organisation. Irrespective of the level at
which the organisation is working, it is mandatory for it to get its financial accounts and
related reports assured by an independent accountant. Through this report, focus is to bring in
limelight the basic audit planning requirements. The contents of the report include the
discussions regarding the audit materiality, and the selected Murray River Organic’s
significant accounts that are considered material as per the discussion of the concerned and
calculated materiality. All the risks related to the material accounts identified are thoroughly
mentioned. The report is well framed with a concluding note in the end.

2. Introduction
To gain confidence among the shareholders and the other stakeholders, as well as to
retain them, and to further call for new investments from potential shareholders, the Murray
River Organics is required to give some sort of assurance. This assurance can never be
generated as long as the Murray River Organics resorts to its publicity blindly. A faithful
opinion is always relied over as compared to any other medium. This opinion on an
independent basis is provided by the auditor, for the requirement of the company (Prentice,
Bills, and Peters, 2018). This report focused on the audit report of Murray River Organics
(Murray River Organic Group Limited, (2018).
The report is in a research based format that includes a study of the company Murray
River Organics. The study is done for the purpose of gathering information related to audit
engagement assignment. A calculation for the materiality purpose is made using revenues as
the base amount. Depending upon the nature of risk and the materiality certain account
balances have been spotted as being high risk areas. Risk that is related to all these account
balances is theoretically explained. It is analysed as what can go wrong in these accounts, i.e.
what kind of risk may be present in these significant account balances. The report is
formulated using the information which has been made available from the annual report that
the Murray River Organics has publically presented on its official website. But, first of all
before any finding is gathered, a complete client understanding is presented regarding its
business and working profile (Murray River Organic Group Limited, (2018).All the research
that is done on the Murray River Organic’s audit requirements is done and the resulting audit
plan is made as per the requirements of the relevant Australian Auditing Standards. Murray
River Organics needs to implement the proper audit and assurance program if it wants to
sustain its business in long run (Murray River Organic Group Limited, (2018).

3. Key information
a. Our understanding of the client
Murray River Organics has harnessed the highly trending opportunity generated from
the demand of organic products all over the world. It has successfully set up its roots in the
field of supplying vine fruit globally and that too organic. The Murray River Organics has set
up offices in several geographic areas including, Melbourne, Europe, Japan, Sydney, USA,
and China (Murray River Organic Group Limited, (2018). The products of the company
include varied categories like table grapes, dried vine fruit, chia seeds, dried berries, dried
ginger, prunes, quinoa, rice, coconut products, dried mango, dried berries, and nuts (Murray
River Organic Group Limited, (2018).
The aim of the Murray River Organics is to achieve sustainable growth through the
implementation of business practices that are environmentally sound. As far as Australia is
concerned, Murray River Organics has been recognised as the largest producer of dried vine
fruit. The most significant criteria that make the Murray River Organics operate successfully
are the presence of 4400 acres of land that has been certified for organic work. The brands
under the name of which the Murray River Organics operates business are Pacific Organics,
Premium Australian Clusters, Nutritious Foods, and Gobble (Prentice, Bills, and Peters,
2018).
Years of successful operation of the organisation have not been a bubble. The Murray
River Organics has worked hard and has been certified on various grounds. The various
organisations or the certificates that has been credited to the organisation include (Murray
River Organic Group Limited, (2018).
 Australian Certified Organic (ACO)
 Australian Grown
 Safe Quality Food Program
 Freshcare
 Japanese Agriculture Standard
 Hazard Analysis Critical Control Point
 Chinese National Organic Products Certification
 EU Organic Farming
 South Korean Organic Standard Accreditation
 United States Department Of Agriculture