Auditing and Assurance in Supermarket Industry

Running head: AUDITING AND ASSURANCE
AUDITING AND ASSURANCE
Name of the Student
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Author Note

1AUDITING AND ASSURANCE
Executive Summary
Auditing forms a crucial part of the organization and with respect to this, it becomes
considerable crucial for the firm to ensure that they are successfully able to abide by all these
standards. The given report is based on the auditing issues as faced by the different firms and in
line of this, it becomes considerably crucial to understand the manner in which these firms have
been dealing with the same. The Supermarket industry has been used as a point pf analysis in the
report.

2AUDITING AND ASSURANCE
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Analysis...........................................................................................................................................6
Woolworths..................................................................................................................................6
Coles............................................................................................................................................7
IGA..............................................................................................................................................8
ALDI............................................................................................................................................9
Caltex.........................................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

3AUDITING AND ASSURANCE
Introduction
The Key Audit Matters can be considered to be the matters which the auditors consider to
be of utmost importance. This means that the auditors believe that, the firm may falter in the long
run with respect to these issues and it is due to this, that they often outline certain key audit
matters which will then go a long way in ensuring that the firm is able to find considerable
success in the long run (Brasel et al. 2016). The individual and independent auditors tend to
determine these different issues which take place in the firm and with respect to this, the ASA
701 has become of considerate importance which outlines the steps to be rightfully considered by
the firm in ensuring long term success (Cordoş and Fülöp 2015). If the consideration of these
matters is not taken seriously earlier, then it might lead to a considerable loss for the firm in the
long run and a probable fall out. Hence, in line of this, the report will be undertaking the case of
the supermarket industry in Australia and outline the different Key Audit matters which will
have considerate impact on their performance as per the guidelines of the ASA 701.
Discussion
The Key audit matters can be rightfully considered to be those matters as per the ASA
701 which tend to attract the utmost importance in the perception of the auditor while they
undergo the overall analysis of the financial statements as present (Gimbar, Hansen and Ozlanski
2015). As the auditor will successfully be able to verify the different issues which exist, it
becomes considerably easier for them to see to it that, they are able to ensure long term success
of the firm. The new standard ASA 701 talks about the overall commitment which the auditors
need to provide towards the company and also focuses on the overall enhancements in the
current field of auditing as prescribed by the International Auditing as well as the Assurance