Auditing and Assurance

Running head: AUDITING AND ASSURANCE
Auditing and Assurance
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AUDITING AND ASSURANCE 2
Question 1: Overview of operations of JB Hi-Fi Limited
JB Hi-Fi Limited is a retail company that deals in home electronic products. The
company has its headquarter in Melbourne and operates two segments in Australia and New
Zealand. JB Hi-Fi operates over 200 retail stores in Australia and New Zealand. The
company generates its revenue by selling home-based products such as car sound systems,
CDs, games, DVDs, Whitegoods, small appliances, and musical products among others (JB
Hi-Fi Limited, 2017).
In 2016, JB Hi-Fi acquired The Good Guys, a consumer retail store, to expand its
market share and competitive advantage amid the increasing competition rivalry in the retail
store industry.
Under the leadership of CEO Cameron Trainor, the company generated total revenue
of $ 6,855,400,000 which comprised of sales as well as income from other trades (JB Hi-Fi
Limited, 2017). JB Hi-Fi uses a centralized management style to control over 12200
employees across its stores; policies are formulated at the headquarters and implemented by
the management of its respective stores. However, the company allows the contribution of its
employees when making decision making.
Question 3: Australian laws and regulations that impact the operation of JF Hi-Fi
The Australian government (Federal and state) have introduced several statutes and
Acts that govern the activities of companies like JF Hi-Fi within its jurisdiction. Some of the
laws include the Fair Work Act 2009, Environmental Law, Corporation Act, and Taxation
law.
a) Fair Work Act 2009

AUDITING AND ASSURANCE 3
The Fair Work Act 2009 seeks to offer a balanced relation framework between the
employer and the employees. The Act outlines the workplace relations system which defines
the terms of the relationship between the employers and the employees. Accurately, the Act
describes the terms of employment, rights, and responsibilities of the parties involved, and
the compliance requirements (Latimer, 2016).
Workplace relation should promote social inclusion as well as advocate for economic
prosperity without discrimination. Failure to comply with the act has a direct negative impact
on JB Hi-Fi regarding fines, negative corporate image, and conflict with government
agencies. In 2016, JB Hi-Fi committed itself to the compliance with the Fair work
Ombudsman requirements (JB Hi-Fi Limited, 2017).
b) The Environment Protection and Biodiversity Conservation Act 1999
The Australian Environment Law generally hold that environment should be used in a
manner that promotes sustainable social and economic development. Therefore, businesses
should operate in a way that protects the physical, social and economic well-being of the
people and the community. Violation of the Act attracts a fine of not less than AU $ 250,000
for corporation besides sanctions by the government and court cases which would affect the
company's reputation (Latimer, 2016).
In complying with the Environment Law, JB Hi-Fi is engaged in a number of
programs initiatives such as the Carbon Disclosure Project (CDP), The Smarter Choice
Program, and Australian Packaging Covenant (JB Hi-Fi Limited, 2017).
The company adheres to the Carbon Disclosure Project (CDP) which require
companies to monitor and disclose their energy consumption and greenhouse emissions
annually. JB Hi-Fi engages experts to identify implementable solutions that can be applied to
reduce its greenhouse emissions and energy consumptions (JB Hi-Fi Limited, 2017).