Auditing and Assurance in Australia | Question and Answer

Running head: AUDITING AND ASSURANCE IN AUSTRALIA
Auditing and Assurance in Australia
Name of the Student
Name of the University
Author’s Note

1AUDITING AND ASSURANCE IN AUSTRALIA
Table of Contents
Question 1: Public Perception of the ‘Role of the Auditor’................................................2
Introduction.....................................................................................................................3
Answer to Requirement 1..............................................................................................3
Answer to Requirement 2..............................................................................................4
Answer to Requirement 3..............................................................................................4
Answer to Requirement 4..............................................................................................5
Answer to Requirement 5..............................................................................................6
Conclusion......................................................................................................................6
References.........................................................................................................................8

2AUDITING AND ASSURANCE IN AUSTRALIA
Question 1: Public Perception of the ‘Role of the Auditor’
Executive Summary
This report shows that the main reason for KPMG coming under the scrutiny of
regulators is the delivery of misleading advice on the share price of to the shareholders
of Discovery Metals. The auditors of KPMG failed in using the audit insight correct
which contributed to the delivery of misleading advice to the client. Since shareholders
of Discovery Metals are the main affected stakeholders because of this advice, they
filed a case against KPMG by demanding the compensation. This also raises issue on
the conflict of interest and threat to audit independence for the advisory services to
Discovery Metals by KPMG.