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Auditing and Assurance Service - Doc

   

Added on  2021-04-17

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Environmental Science
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Auditing and Assurance Service
Auditing and Assurance Service - Doc_1

ContentsIntroduction......................................................................................................................................3Answer 1..........................................................................................................................................3a. Comparison of GHG Emission Disclosures in Woodside Petroleum Limited (Woodside) andAGL Energy Limited (AGL) Annual Sustainability Reports......................................................3b.NGER Auditing Requirements.................................................................................................4c. Woodside & AGL Sustainability Report Assurance................................................................5d. Audit Assertions in GHG Reporting........................................................................................5Answer 2..........................................................................................................................................6a. Case for Warehousing Ltd to Sue the Auditors for Negligence through the application of case law and precedents...............................................................................................................6b. Justification of Successful Legal Action taken by Warehousing Ltd through Relevant Cases and Precedents..............................................................................................................................7c. Impact of Conveying to Auditors in Written by Warehousing Ltd about their decision to buyCFW.............................................................................................................................................7Conclusion.......................................................................................................................................8References........................................................................................................................................9
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IntroductionThere is increasing pressure on the business organizations nowadays for promotingtransparency and accountability in their operational activities. The businesses need to complywith different type of rules and regulations for meeting the various needs of the stakeholders. Assuch, the role of auditors is also becoming increasingly complex as they have to properly checkthe financial accounts of an organization for maintaining the transparency in its operations. Therole of auditors is very important to maintain internal control within an organization. Thebusiness organizations are therefore emphasizing to audit their sustainability reports as well as inaddition to their annually prepared financial statements (Tritschler, 2013). As such, the presentreport analyses the two different scenarios’ related to the expanding role of auditors in presentbusiness environment. The first scenario relates to examining the green house gas emissions(GHG) report auditing undertone voluntarily by some Australian organization while second onerelates to describing the important of auditors in developing accurate financial statements. Answer 1a. Comparison of GHG Emission Disclosures in Woodside Petroleum Limited (Woodside) and AGL Energy Limited (AGL) Annual Sustainability Reports The large number of business entities around the world are developing and disclosing theGHG reports as it has been regarded mandatory by some countries around the world such as theUS, the UK, Canada, Japan and the Australia. The development of GHG reports in Australia isgoverned by the National Greenhouse and Energy Reporting Act 2007 (NGER) and is regulatedby Clean Energy Regulator. However, there is no mandatory requirement for the businessorganization in Australia to audit their GHG reports but some organizations are seeking to audittheir sustainability reports for increasing transparency within their business activities. As such,Woodside Petroleum Limited (Woodside) and AGL energy Limited (AGL) are the businessorganizations in Australia engaged in auditing their sustainability reports as per the NGER Act. Woodside has adequately disclosed information regarding the emission of greenhousegases in Australia in its sustainability report. The company has properly discussed about theimpacts of its business operations on the climatic changes and has assessed both the risk and
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opportunities due to these changes. The company is involved in the exploration and productionof oil and gas products. Therefore, it is extremely essential for the company to adopt sustainablebusiness practices for protecting environment from the negative impact of greenhouse gases. Thecompany’s different approaches for reducing the emission of greenhouse gases have beendisclosed effectively in the report. For example, it supports global carbon pricing and alsopursues energy efficiency programs to minimize its emission of greenhouse gases. It has alsodisclosed the amount of greenhouse gas emissions in the past 5 years in the data table. Thecompany’s efforts to incorporate the use of natural gas for production of energy have also beendiscussed in the sustainability report with the aim of reducing the emission of greenhouse gases.In addition to this, the voluntary disclosures regarding the safety framework adopted by thecompany for reducing the impact of flammable hydrocarbons on the business operations is alsobeing disclosed in the report (Woodside Petroleum Ltd: Sustainable Development Report, 2016).On the other hand, the sustainability report of AGL Energy Limited has also providedsufficient disclosures regarding the efforts taken by the company for reducing the emission ofgreenhouse gases. The Greenhouse Gas Policy of the company is specifically meant for reducingthe emission of greenhouse gases annually by about 30% till the end of the year 2030. Also, ithas disclosed the overall account of greenhouse gas emissions from its business in the datacentre. The significant increase in the emission of greenhouse gases in the year 2016 ascompared to the year 2015 has also been sufficiently explained in the report. Thus, as per theNGER Act requirements, both the companies have effectively provided the information relatedto the annual scope 1 and scope 2 greenhouse gas emissions and the net energy consumption ofthe overall business activities (Agl Sustainability Report, 2016). b.NGER Auditing RequirementsThe NGER Act has mandated business organizations in Australia for disclosing theinformation relating to greenhouse gas emissions, energy consumption and production to theClean Energy Regulator. The Act requires Clean Energy Regulators to develop the register ofauditors for easy selection and appointment of a suitable auditor. As per the NGER, there shouldbe a common framework adopted by the business entities in Australia for the emission ofgreenhouse gases. NGER has developed Energy Reporting Audit Framework for providing the
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