Auditing and Assurance: Planning Audit Engagement for Murray River Organics

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

AUDITING AND ASSURANCE1
Executive Summary
The main purpose of this report is to undertake the analysis of different aspects for
the planning of audit engagement for 2019 of Murray River Organics (MRG). This
report undertakes the analysis of areas of business operation and business risks of
the company. After that, this report determines three accounts at the risk of material
mistsement in the company. Compliance of the company with the ASX corporate
governance principles and recommendation is also considered here. Lastly, this
report shows the determination of planning materiality in the company.

AUDITING AND ASSURANCE2
Table of Contents
Introduction...................................................................................................................3
1. Areas of Operation....................................................................................................3
2. Three Business Risks...............................................................................................4
3. Three Accounts at the Risk of Material Misstatements............................................5
4. Compliance with Principle 4.....................................................................................6
5. Doubts on the Ability to Continue as a Going Concern............................................7
6. Planning Materiality..................................................................................................8
Conclusion....................................................................................................................9
References.................................................................................................................10

AUDITING AND ASSURANCE3
Introduction
The auditors have the responsibility of considering certain aspects in the audit
planning stage for developing the audit engagement plan. This includes gaining
knowledge of the client’s business operations, identification of business risk,
identification of material accounts balances, assessment of compliance with
corporate governance principles, assessment of going concern status and
determination of planning materiality (Chui and Pike 2013). The aim of this report is
to undertake the analysis of all the above-mentioned aspects for the audit
engagement for 2019 of Murray River Organics (MRG).
1. Areas of Operation
MRG is considered as one of the leading Australian company involves to
grow, process, manufacture and sell organic and better-for-you products. The aim of
the company is to make organic, healthy and sustainable food for its consumers in
Australia as well as around the world (murrayriverorganics.com.au 2019). It implies
that the principal business activities of MRG is producing, manufacturing, marketing
and selling certified organic, natural and better-for-you products. The operation of
MRG can be seen in 4,900 hectors of farmlands in the Sunraysia region that
includes the largest organic driven vine fruit properties in Australia. Apart from the
farming assets and processing plants in Mourquong NSW, the company also
operates a facility to manufacture as well as distribute foods in Dandenong South,
Victoria. This particular site involves in packing as well as distributing wide variety of
organic and better-for-you foods products under MRG’s own brands and or other
retailers. The customers of MRG includes domestic retail, wholesale and industrial
customers along with the customers who use the drive vine fruit of the company in