Auditing and Assurance Services

This report provides an overview of auditing and assurance services, including accounting theories and Australian accounting standards. It discusses the true and fair view concept and its application in financial statements. The report also includes a case study on Gold Fields Limited and its financial reporting. Find study material, solved assignments, and essays on Desklib.

Running head: AUDITING AND ASSURANCE SERVICES
Auditing and assurance services
Name of the student
Name of the university
Student ID
Author note

AUDITING AND ASSURANCE SERVICES
Table of Contents
Executive Summary......................................................................................................4
Chapter 1: Introduction:................................................................................................5
1:1 Accounting Theories...........................................................................................5
1.2 Australian Accounting Standard.........................................................................8
1.3 Problem statement:.............................................................................................9
1.4 Research Aim and Objectives............................................................................9
1.5 Research Questions.........................................................................................10
1.6 Structure of the Study.......................................................................................10
Chapter 2: Discussion................................................................................................11
2.1 Company Overview...........................................................................................11
2.2 Meanings of Accounting Standards..................................................................11
Chapter 3: Research Methodology.............................................................................12
3.1 Introduction.......................................................................................................12
3.2 Research Method Outline.................................................................................13
3.3 Research Onion................................................................................................13
3.4 Research Philosophy........................................................................................13
3.5 Research Approach..........................................................................................14
3.6 Research Design..............................................................................................15
3.7 Data Collection Process....................................................................................15
3.8 Data Analysis Plan............................................................................................16
Chapter 4: Findings....................................................................................................16

AUDITING AND ASSURANCE SERVICES
4.1 Introduction.......................................................................................................16
4.2 Assessment and identification of risk of material misstatement:......................17
4.3 Inherent and control risk:..................................................................................18
4.4 Materiality in Planning and Performing an Audit...............................................19
4.5 Auditor Responses to Assessed Risks.............................................................20
4.6 Subsequent Events...........................................................................................21
4.7 Going Concern..................................................................................................22
4.8 Forming an Opinion and Reporting on a Financial Report...............................24
4:9 Modifications to the Opinion in the Independent Auditor’s Report...................25
4:10 Emphasis of Matter Paragraph in the Independent Auditor’s Report.............26
4:11 Codes of Ethics for Professional Accountants................................................27
Chapter 5: Implication of findings...............................................................................29
5.1 Introduction.......................................................................................................29
5.2 Annual Report of the company.........................................................................29
5.2.1 Business Risk.............................................................................................29
5.2.2 Corporate Governance...............................................................................29
5.2.3 Audit Report...............................................................................................30
5.2.4 Key Audit Matter.........................................................................................31
5.2.5 Going Concern...........................................................................................31
5.2.6 True and fair view.......................................................................................31
Chapter 6: Conclusion and Recommendations..........................................................32

AUDITING AND ASSURANCE SERVICES
6.1 Conclusion........................................................................................................32
6.2 Recommendations............................................................................................32
Reference and Bibliography.......................................................................................34

AUDITING AND ASSURANCE SERVICES
Executive Summary
The report contains details of the true and value concept and going concern concept.
It take into consideration of various accounting standard which are to be concern by
the auditor in order to get the actual picture of the financial report of the company.
The report is a research proposal based and it shows the various effect of the auditor
responsibilities in related to the financial statement of the company. It contain a detail
explanation of various standard of accounting in related to the company. This show
how the company should evaluate each standard and it should apply those standard
in the company. It also have shown the different auditor responsibility regarding the
auditor in related to the standard and how the auditor should carry those standard in
the auditing process in regard with the company. Lastly the report contain the detail
explanation of the findings and also the implication of those findings in regards of the
company. It contain the details of the true and fair view and also the concept of the
going concern in related to the financial statement. It include a detail explanation of
the company annual report and contain the audit key matters of the company and
how the auditor had taken care of the same.

AUDITING AND ASSURANCE SERVICES
Chapter 1: Introduction:
The case study report is prepared to address the relationship and impact of
the identified auditing standard in the context of different aspects of auditing theories.
The objective of preparing the report is to assess the true and fair status of the
financial statement of international company and criticizing the opinion that is given
on the independent audit report by focusing on the key audit matters that is provided
by the auditors of company. For the purpose of conducting research on the audited
financial statements, the company that has been chosen is Gold Field which is the
largest gold mining company of Australia. The company is a diversified producer of
gold which has eight operating mines and represent then considerable global
production which makes the company largest miner of underground gold in Western
Australia (goldfields.com 2019).
1:1 Accounting Theories
Financial accounting practices and theory which are the fundamental of any
organization. Each organization may be large or small irrespective of its
nature it require a set of principles so that they can maintain all the transaction
so that the organization can know the competitive position in the market
(Abraham, Harris & Auerbach 2017). This theories are the frameworks,
methodologies and principles which are used for the analysis and
implementation of the financial reporting. Accounting is a very broad concept
that involves many process such as recording, classifying, analyzing and
summarizing of the huge number of transaction and help the company to
determine the financial position of the company by helping them to prepare

AUDITING AND ASSURANCE SERVICES
the income statement and balance sheet from the accounting transactions
(Agha 2014)
. It is an art as well an science as it help the company to record the transaction
chronologically in a presentable way so that the accounting statement provide a true
and fair view of the business and also it help to determine the financial position by
able to know the surplus and the losses in regard with the business had accrued in
any period.
The theories of the accounting deals with the accounting steps and procedure
(Ahmed 2015). It can also be referred as the general framework with the help of
accounting practices that can be evaluated with the help of development of new
procedures and practices can guided. The accounting theories basically deals with
the maintenance of daily transactions, maintenance of cash, capital funding policies,
credit policies, revenue recognition, error and rectifications and cost control
techniques (Alhazaimeh, Palaniappan & Almsafir 2014). Every organization should
be very careful in regards with the dealing of finance. Accounting is basically deals
with the financial transaction and hence each accounting work have reason behind it.
The theories of accounting always explains each transaction with proper reason and
logical understandings so that each financial user can able to understand the logic
behind the accounting transaction and how it has been deal in the organization.
The theories and accounting practices are closely related to each other. The
accounting theories have been developed through explanations, analysis,
observations, scanning and scrutiny of the daily accounting practices followed by the
business organization. The theories are always based upon some logic and sound
reasoning. Practicing of the financial accounting is not possible if the person does

AUDITING AND ASSURANCE SERVICES
not have proper theoretical knowledge. Accounting theories help the management to
present their account properly so that it can present a proper image of the financial
books in front of the financial users. The theories can be many different types which
are been discussed below:
1. Evaluative theory: This theory help the organization to understand the quality
and the quantity of the event (Beattie 2014). It also measures the quantitative
and qualitative of any event.
2. Descriptive Theory: This theory deals with the reason of any financial events
and the effects related to the event in detailed (Bicu, Chen & Elliott 2017).
This help in forecasting of how the event is been treated in the accounting and
the explanation related to those events.
3. Inductive Theory: This theory helps the business to analysis and assesses
the past happenings of any such event (Birt, Rankin & Song 2013). This is
also based upon the repeated experiments and also informs related to the
accountants which are similar to such events which are doing to the happen in
future and the consequences related to it.
4. Deductive Theory: This event shows the future behavior of any particular
event (Bloom 2013). This theories are made by the organization in order to
achieve the future goals of the company.
5. Generally Accepted Theory – These are the basic principle which are
followed by all the accounting process (Bonin 2013). These theories give an
outline to the accounting process and can be applied be adopted by all types
of organizations
6. Communicative Theory – This theory help the business to forecast their
future events (Brei & Gambacorta 2014). These is the only theory which help

AUDITING AND ASSURANCE SERVICES
the company to forecast the future events of the business and help them to
make proper strategy regarding the business which is going to happen in
future
7. Normative Theory – This theory help the management to compare the future
acts in regards with the daily present events (Camfferman & Zeff 2015). It also
have several possibilities that are independent in the present case and help
them to judge and correct its impact upon the future events of the company.
1.2 Australian Accounting Standard
Accounting standard are the base of the theories and practices which each
types of organization have to maintain the accounting procedure in respect of
each standards. It give an overview of the accounting practices and policies.
These are the most reliable source of information and it’s the base of financial
reporting and these are the primary source of the theory of Generally
Accepted Accounting Principles (Australian Auditing Standards 2019). The
standard on accounting are been set by the Australian Accounting Standard
Board. The board maintain and regulate the standard in related to the
financial reporting which should be done by the all the entity in Australia. The
powers of the standard board lies with the Australian Securities and
Investment Commission Act 2001. The reporting is divided into two tiers:
i. Australian Accounting Standards
ii. Australian Accounting Standards – Reduced Disclosure Requirements
The first tier shows the accounting methods which should be as per
International Financial Reporting Standards that has issued by the
International Accounting Standard Board. This give an outline how the

AUDITING AND ASSURANCE SERVICES
company should develop its reporting and how they should do accounting
of each transaction. The second tier involves in related to the first tier as it
involves recognizing, presenting and measuring related to the information
of Tier 1. As per the Corporation Act 2001 all the Australia entities must
follow the accounting standard while preparing their financial statements.
This report present the rules and norms which the organization must follow
in related to the financial reporting and how it should applicable in related
accounting standard (Carey, Potter & Tanewski 2014). This help the
company to make a clear picture and help them to represent a true and
fair view or not. As this standard is applicable for all the entity so this help
the financial user to know more about the company and how the financial
position of the company is in the market.
1.3 Problem statement:
The problem statement of this paper is to risk of material misstatement and
ascertaining whether such risk has been assessed by the auditor of company. The
paper also tends to identify whether the entity operate as going concern and whether
the repotting entity has modified the opinion presented by the independent auditor.
This paper all deals with all the related standard of audit and how it affect in the
company financial statement related to show true and fair view of the company.
1.4 Research Aim and Objectives
The main aim of the research is to determine true and fair value status in the
financial statement and also about the auditor key factors related to the company, it
involve the interpretation of the annual report of the company Gold Fields Ltd. The
research objective is stated as below:

AUDITING AND ASSURANCE SERVICES
i. To check whether the company financial statement are showing true and
fair view or not.
ii. To analysis the balance sheet of the company and to know whether all the
standards are been followed or not.
iii. To interpret the opinion of the auditor related to the financial statements.
iv. To check the key audit matters related to the company.
v. To check application of different standard and how the company have
implied them in the business.
vi. To interpret auditing approach and concepts related to the financial
statements.
1.5 Research Questions
The research questions that are addressed here are as follows:
i. To check the opinion of the auditors
ii. To check the concept of true and fair view
iii. To analysis the financial statement in regards with audit
iv. To check different types of the standards
1.6 Structure of the Study
The research work discuss about the concept of financial accounting
standards and how they are implement in the organizations. It discuss about the true
and fair view concept and the importance of them in the financial statements. The
aims and objective of the research work is based upon the above research question
which have been prepared above. The discussion is based upon the company
named Gold Field limited about the concept of the true and fair view based upon this

AUDITING AND ASSURANCE SERVICES
the findings in the research and the findings are been backed up by the conclusion
and recommendations.
Chapter 2: Discussion
2.1 Company Overview
Gold Fields Limited is one of the biggest largest gold mining firm. It is based
upon the Australia. It headquarter is situated in Johannesburg, South Africa. The
company operates its business in South Africa, Peru and Australia. It produced gold
and have more than seven operating mines in Australia and also some other part of
Ghana, Peru and South Africa.
2.2 Meanings of Accounting Standards
The government and the professional of Australia is been leading the
development of innovative standard of accounting and accounting reforms in
both private as well as public sector (Australian Auditing Standards 2019). These
bodies also play a very important roles in the development of International
Accounting Standard Board which are generally called as IASB. They are
playing a very important roles in related to the decision of International
Accounting Standard.
All the company financial statements and the financial reporting should
comply with the prescribed accounting standards. Compliance with the accounting
standard helps in better presentation of the financial position, cash flows and help to
know the financial position and performance of the organization (Carraher & Van
Auken 2013). This financial statement contains the information which are very helpful
for the financial users such as owners, shareholders, employees , investors and

AUDITING AND ASSURANCE SERVICES
regulators as this help the judge and make proper decision in regards with the
company and able to know more about the company financial position. The standard
help the company to make understandable report so that it can be easily understood
by the shareholders and they can judge the financial statement properly and can
take decision accordingly.
An accounting standard is termed as technical statements as when it provides
the accounting for a specific transactions and events. This standard affects the
financial statement preparation and presentation (Choi & Young 2015). The standard
of Australia are been developed primarily for the some professional organization and
which can be enforceable under their ethical codes. These professional organization
is been jointly operates by the Accounting Research Foundation which includes both
Accounting Standard Board and Public Sector Accounting Board. These boards work
with proper co-ordination and prepare accounting standard for both public as well as
private sector enterprises (Christensen, Hail & Leuz 2013). The board was been
formed in the year 1984 so that it can review the standard produced by the
profession and which are been provided with the company law force. The standards
of the AASB are applied under the Corporations Law. The AASB seeks to have
harmonies in its standard with the International Accounting Standard Boards also it
seeks to assist International Public Sector Accounting which was previously known
as Public Sector Company (Cordazzo 2013). The AASB reports which is the Minister
for Superannuation and Corporate Law. The principle funding of this agency is
through the parliamentary appropriation which is there under the portfolio of
Australian Treasury.

AUDITING AND ASSURANCE SERVICES
Chapter 3: Research Methodology
3.1 Introduction
The analysis of the report is done by employing the method of conducting
extensive research of the annual report published by reporting entity. Research has
been conducted by analyzing the historical and present data and facts as mentioned
in the financial report of organization. Research is basically concentrated on
qualitative methods along with some quantitative analysis. The data pertaining to the
audit matters have been collected from the annual report and the official websites of
company.
3.2 Research Method Outline
The objectivity of the research methodology is the research method outline. It
is the outline of the framework related to total research work, on which basic the
whole research work will move ahead. The research philosophy which is been used
in the research work is philosophy of positivism and research theory that have been
used is epistemology theory. The research approach which is been chosen in the
paper is deductive approach. A descriptive research approach have been followed
throughout the paper.
3.3 Research Onion
One of the important part of the research topic is the research onion. It
explains both the methods of research and the research framework. The research
work is based upon the research onion. Various techniques which are used in
completing the paper has been explained in the part of section. The research can
make proper strategies by the use of this research onion to reach the conclusion of

AUDITING AND ASSURANCE SERVICES
the project. This help them to get a view about the research and how it is been
conducted by the same.
3.4 Research Philosophy
Research philosophy refers to the method from which the data related to the
research have been gathered, analyzed, interpreted and thereafter being used in the
project. It is of various types such as pragmatism, positivism, interpretivism and
realism. It deals with all kinds of source of a particular knowledge, its nature and
development. The research philosophy is been selected by the researcher is based
upon the topic on the research is been made. The research topic deals with all the
accounting standards and interpretation. The philosophy which is been used in the
above case is the philosophy of positivism because the research used the data that
are highly structured as per the nature and it follows all the scientific evidences and
principles. It states that the science is the only way from which the truth can be
achieved. It states that the data which are been obtained from the industry and
market are very reliable and it can be trust as per the research is been concern. The
research theory which is been applied in the research work is the theory of
epistemology. Epistemology is the theory deals with the knowledge theory. This is
the studies with the justification and rationality of human belief. This theory is been
used in the research works as it mainly focuses upon the justification of fact which
are related to the accounting concept which are very important for the organization
and must be used by the organization accountant so that it can apply in the
organization structure.
3.5 Research Approach
The research approach refers the process of the collection of data and how it
is been analysis and interpreted. It can be divided as data analysis approach and

AUDITING AND ASSURANCE SERVICES
data collection approach. There are two kinds of approach which are generally taken
into consideration in regards with the deductive approach and the inductive
approach. The approach which is been selected in the paper is the deductive
approach. The validity of deductive approach is based upon assumptions. This
approach evaluate the hypothesis and the proportion of the related theory. The
approach which is been selected is deductive approach as the research as the
information that has taken is totally established standard and all the information is
available. The inductive approach is no used as because there is no need of making
any new model in regards with the research paper and topic of the research is
general in nature.
3.6 Research Design
To achieve the objective of the research the design help the researcher. The
method and the techniques which are been used by the researcher in regards with
the project are being stated in the research design. Research design can be
separated into three parts as exploratory, explanatory and descriptive. This research
paper follows a descriptive research pattern. It is very scientific in nature and it
involves describing and observing the subject behavior without having influence over
it. The information which is been used here is based upon established standards.
The observation of the data that can help in getting an overview of the advantages
and the limitations and hence descriptive approach is been used.
3.7 Data Collection Process
This process helps to understand the source and the type of the data which is
been used in the research work. There are two types of data which can be used in
the research paper as primary and secondary data. The primary data are raw data
which are been obtained directly from required sources such as interviews,

AUDITING AND ASSURANCE SERVICES
questionnaires and many other means. The secondary data refers to the published
data and which can be available easily on the different sources. The research papers
is based upon the secondary data. It is based upon the annual report of the Gold
Fields Ltd and the Australian Accounting Standard Rules which are the medium from
which the report is been made.
3.8 Data Analysis Plan
The collection of data is been done from the secondary resources which is
based upon the annual report of the Gold Field Ltd for the year 2018. The accounting
standard which are been used by the company are been discussed and how the
company manage its business, the concept of true and fair view and going concern
is also been discussed in the research report.
Chapter 4: Findings
4.1 Introduction
This section of the paper presents an analysis of the given case by gaining
information on the auditing and accounting standards and its practice by Gold Field
Company. Information collected or fetched from the financial statements, opinion of
the auditor of company on annual report is analyzed in relation to audit standards
and audit concepts (COUNCIL 2016). All the risks identified from the annual report of
company are analyzed by using the risk based approach of audit.
Key audit matters are those matters which are regarded as significant in
forming professional judgment on the auditing of the financial statement of the
reporting entity. The auditors of Gold field has addressed that the key audit matters

AUDITING AND ASSURANCE SERVICES
have been addressed while conducting the audit of the financial statements along
with providing an opinion of such statement as a whole. However, no separate
opinion has been framed on such matters (Creswell & Poth 2017). The entire audit
matters identified from the annual report of the company has been explained in the
context of Australian auditing standard. The objective of communicating key auditor
matters by the auditors is to provide greater transparency in performing audit so that
the communication value of the report produced by the auditor is enhanced. The
Auditing standard helps in en handing the transparency in describing the relevance
of the matter by encouraging the auditors to able to highlight the aspects that are
particular to the reporting entity.
4.2 Assessment and identification of risk of material misstatement:
The auditing standard 315 deals with the responsibility of auditors when it
comes to identify and assess the existence of material misstatement in the financial
report produced by way of gaining an understanding the role of internal control of
reporting entity (Delen, Kuzey & Uyar 2013). The auditors have the objective of
obtaining reasonable assurance in determining that the fact that consolidated
financial statements are free from the material misstatement. For the purpose of
identification of material misstatement, risk assessment procedures are performed
by the auditors and such assessment is carried out by way of inspection,
observation, analytical procedures and management enquiries (auasb.gov.au 2019).
It can be observed from the analysis of annual report as identified from the section of
report produced by independent auditor that they have not reported anything about
the financial statements being materially misstated (Dennis 2013). The risks
pertaining to impact the materiality of the financial statement has been identified by
the auditors through the process of obtaining an understanding of the entity and the

AUDITING AND ASSURANCE SERVICES
environment in which it is operating. Such an understating has been gained by
considering the accounts balances, classes of transaction and disclosure made in
the financial statements. All the issues that have been identified during the prices of
conducting the audit has been highlighted by the auditors specifically on the results
of the performed work on making significant judgment and estimates, high risk areas
as well as an unseal and significant transactions (Duska, Duska & Kury 2018).
Furthermore, the auditors have gained an understanding of the control of entity for
determining the existence of significant risk. It has been found from the written report
s presented in the financial report of Gold field limited that made an assessment that
the IT governance, internal financial control and process of risk management were
adequate for the given financial year. Auditors have ascertained that the material
misstatements cannot be prevented or detected by the internal control over financial
reporting because of its inherent limitations. In order to monitor and facilitate the
control over the risks, a comprehensive process of risk management is developed by
the group (Dyckman & Zeff 2015). The business risk of Gold field comprised of
liquidity risk, credit risk, market risk and other risk such as banking relation
management and operational risk.
4.3 Inherent and control risk:
Inherent risk are the risk which cannot be detected and protected by the
management internal control system. This are the risk which is not able to be
understand by the management and the auditor even, this risk happen due to
complexity of the different client and the business in which they are involved
(Australian Auditing Standards 2019). The risk is very high if the transaction
require or involve high amount of human judgment. This risk are very high so
the auditor have to judge this risk and it had have to make its audit procedure

AUDITING AND ASSURANCE SERVICES
so that it will able to judge the inherent risk. To know more about the risk the
auditor have to make an audit plan, audit strategy and audit approach (Easton
& Sommers 2018). This process include much amount of sufficient time which
is to be require to the auditor to give in the process of the audit so that it can
easily understand the business process so that it can easily able to judge the
risk associated with the company. Control risk on the other hand is the risk
which the internal control of the company cannot able to know, it can be any
risk which is not able to judge by the internal control of the company. As if the
internal control is weak than there is a chance that the financial statement
may have some material misstatements so it should be taken care by the
management and the company should also able to make changes in the
internal control so that it can minimize the risk in the internal control (Edwards
2013). The internal control system of Gold field is designed for providing
reasonable assurance on the financial information reliability and on the
maintenance of accounting records properly. It also helps in assessing
whether the company complies with the sustainability records and code of
conduct (Faello 2015).
4.4 Materiality in Planning and Performing an Audit
This is the ASA320 which given rules and regulation related to the materiality
of the financial statements. This auditing standard applies to any an audit of a
financial report for a financial year in related to the Corporations Act 2001 and to all
those who audit of the financial report for a financial year with any other purpose. It
also applies to any other audit related to historical financial information (Fernando &
Lawrence 2014). This accounting standard is operative for the financial reporting
period from 1 January 2010. This standard deals with the auditor responsibility in

AUDITING AND ASSURANCE SERVICES
related to the concept of materiality in planning and performance of audit in related to
the financial report. It deals with many definition of materiality and so it help the
auditor to know the real meaning of the materiality and help them to identify them
easily (Haller & van Staden 2014). The things which can be consider as materiality
as any misstatement in the financial statement which includes omissions are to be
consider as material as this can easily affect the economic decision of the financial
users.
Second point which should be taken into consideration in regards with the
materiality is that it should be judged as per the size of the business as well as the
nature of the business.
Third part which should be consider as materiality is that the materials which
are related to the financial report are basically based upon the consideration of the
financial information related to the needs of users as a group so this can easily affect
the rights of an individual and can be termed as material misstatements (Holder et
al., 2013).
The judgment of the materiality in regards of the auditor is based upon its
professional judgment and as per the auditor perception and to know that the auditor
should have proper knowledge of the business and economic activities related to the
industry in which the company works, should understand the basic on which the
financial report are been prepared and the audit level of materiality. To able to
recognize the uncertainties inherent by the uses of different estimates, different
judgments and consideration related to the future events (İmrohoroğlu & Tüzel
2014). It should able to make proper economic decision on the basic of information
presented in the financial report.

AUDITING AND ASSURANCE SERVICES
4.5 Auditor Responses to Assessed Risks
ASA 330 deals with the Auditor Responses to Assessed Risk this standard
how the auditor should response in related to the assessed risk this standard apply
to the an audit of a financial report for a financial year in regards with the
Corporations Act 2001 and in also to an audit of a financial report or complete set of
financial statement in related to other purpose (Joubert, Garvie & Parle 2017). It also
applies to the audit of any other historical related to the financial information. This
standard is operative from the 1 January 2010 so any one should apply those
standard in the business organization. The scope of this standard is how the auditor
should deal with design and implement in related to the risk of material misstatement
and how the auditor should deal with the same (Kang & Gray 2013). The objective of
the standard is to help the auditor to obtain sufficient audit evidence in regards with
the assessed risk of material misstatements by design and implement of appropriate
responses to those risks. This standard includes definitions of Substantive procedure
and Tests of control. This definition help the auditor to know more about process and
help them to know the risk related to the same. In regards with this the auditor
should perform different process in order to find out the desired amount of risk as it
should extent the time of its audit process in order to know the risk and how the
company should able to manage the ascertain risks (Keloharju, Linnainmaa &
Nyberg 2016). In regards with the risk auditor should provide different test of control
in the company so that it able to gather appropriate evidence in related to the risk. It
should check the desired risk of the company so that it able to manage the risk of the
company.

AUDITING AND ASSURANCE SERVICES
4.6 Subsequent Events
This auditing standard ASA 560 is based upon the Subsequent Events, this
standard deals with the events and help to know how to deal with it. This standard
applies to each audit of a financial report for the financial year in regard with
Corporations Act 2001 and also to audit of financial report in related to any other
services. This standard also applies to each audit in which other historical financial
information is been used (Kim, Kraft & Ryan 2013). This standard is been operative
to all the financial entity in regard with the financial statements form 1 January 2010
so after that each organization have to apply to these standard. The scope which this
auditing standard gives is that it deals with what are the auditor responsibilities
related to the subsequent events in related to the audit of the financial reports. It
define subsequent events as there are many financial events which occur after the
date of the financial report (Mankin & Jewell 2014). There two types of the events
related to the financial statements. The events are first the events of which there the
evidence where are there at the date of the financial report as the company was
expecting to have those events in near to the date of the financial report and the
other event which can be termed as subsequent is that the events which provide
conditions which is going to arise after the date of financial report.
The objective of this auditor in related to this standard is it should obtain
sufficient evidence that whether events which happen between the date of financial
report and audit report any events which require adjustments in the accounting
transaction or any disclosure which are to be done in the financial report as the
report should be maintain as per the standard and also it should check the facts the
have become known to the auditor which is going to happen after the audit report
and if the auditor is able to know the fact than it should immediately amend the audit

AUDITING AND ASSURANCE SERVICES
report (Mayer 2015). This standard also explain the terms related to the standard
and help the auditor to know various terms which are needed by the auditor in
related to the financial reporting. This standard also gives many process which is to
be done by the auditor when the management do amendment in the financial report
related to the subsequent events as if the management do some changes than as it
should carry some audit process which are necessary in regards with the changes
done by the management.
4.7 Going Concern
The standard related to going concern is deal with is ASA 570 this help to the
auditor to know more about going concern and how to the audit related to the going
concern concept (Merkl-Davies & Brennan 2017). This standard applies to any audit
of a financial report related to in financial year in regards with the Corporations Act
2001 and also to the audit process related to the financial reporting related to other
issue. It also applies to other audit process in which historical financial information.
This standard is been operative to all the financial entity from 15 December 2016 so
each entity should have followed this after it became operative.
Going concern concept state that the business entity will run its operations in
the future and is not be liquidate or be forced to stop its operations due to any
reasons (Miller & Power 2013). A company is said to be in going concern as normal
only if there are some evidence that the company is having any finance problem or
any stop in the business operations.
This standards help the auditor to know the auditor responsibility related to
the going concern and how it should implement in the financial report (Modarres
2016). As it is know that each financial report is based upon the concept of the going

AUDITING AND ASSURANCE SERVICES
concern so it is been assumed that the financial report are been made in the
assumptions of the going concern.
The auditor should able to judge the going concern concept as it should check
the degree of uncertainty in related to any events which is going to affect the future
of the business and it show that it can affect the company going concern. It should
also check the size and the nature of the business of the company and should asses
the degree which are going to be affected by the external factors and also see the
outcome of the events or the conditions (Morales & Lambert 2013). It should also
check any judgment which are made related to the future business of the company
and how it can affect the future of the business organization.
The auditor responsibility related to these standard is that it should do all the
process of audit so that it can get some evidence regarding the effects of the
company financial position related to the assumptions of the going concern so it
should get the evidence and should conclude as per the evidence which is been
obtained by the auditor in it audit process (Needles, Powers & Crosson 2013).
4.8 Forming an Opinion and Reporting on a Financial Report
The standard is ASA 700 it is the standard which state who the auditor should
asses and judge the financial report and form its opinion that whether the financial
statement are showing true and fair view or not. This standard applies to all the audit
process of the financial report for any financial year in related to the accordance of
Corporation Act 2001 and also to all the audit process which are done in regards of
any other factors (Nobes 2014). This statement applies to all the audit process which
are related to the historical financial information. This is operative from n before 15
December 201 so each company have to follow this standard.

AUDITING AND ASSURANCE SERVICES
The scope in this standard is that it deals with the responsibility of the auditor
in related to the opinion which it have to give in regards with the financial statements
and it also deals with the opinion and content of the audit of the financial report
(Omar et al., 2014). The audit needs are aimed to address an appropriate the
balance between the constancy and comparability of the financial statements as per
the globally reporting and also the auditor should work upon the process of making
the information of the financial report more understand to the financial users. This
standard states the objective of the auditor as it should form its opinion on the
financial report of the company upon the conclusion which is been drawn by the
auditor in regards with the auditor evidence which it have gather by doing the audit
procedure in the company and also it should express its opinion by a written report
as the auditor should give its opinion in formal writing (Otley 2016).
4:9 Modifications to the Opinion in the Independent Auditor’s Report
The standard which is deal is ASA 705, this standard help the auditor to know
its responsibility in regards with the Opinion which is to be given by the auditor in
regards with the financial report in its Independent Auditor’s Report (Palepu, Healy &
Peek 2013). This standard applies to each audit of any financial report of any
financial year in regards with the Corporation Act 2001, and also to those audit
process which are done by the auditor of any financial report in regards with some
factors. It is also implied to all the audit process which are done in related to the
historical financial information (Paul Pacter 2013). It is been operative from the date
15 December 2016 so each company have to follow this standard after its date. The
scope of this standard is that it basically deal with the auditor responsibility in
regards with the issue which it have in regards with ASA 700 and to resolve that this

AUDITING AND ASSURANCE SERVICES
standard have come in to the force. It also deal with how the auditor modified opinion
can affect the form and content of the auditor report.
This standard shows what are the types of modify opinion and to judge them
what are the things the auditor should take into consideration as, firstly the auditor
should the check the nature of the event due to its have to modify its opinion as
whether the events medication is been done due to some material misstatements or
there were no sufficient appropriate from which the auditor was unable to get
evidence in it process of audit (Rahman 2013). Secondly it should check the
judgment of the event that whether there are possible situation where the company
financial report can be affected by the same matter in the financial statements.
The objective of the auditor in related to this standard is that it should give its
opinion regarding the financial report when it find this situation as it find some
evidence form the audit process and hence conclude that the financial report is not
totally free from material misstatement and also it will give a modified report when it
is unable to find any proper evidence from it audit process that the company financial
account are free from any material misstatements (Robinson et al., 2015).
The requirement of the auditor to give a modified opinion in regards with
financial report of the company is that when it find the evidence that the financial
report of the company is not free from material misstatements than it should give a
modified opinion in regards with the financial statements and when it does not able
to find any evidence in related to the material misstatement of the company that also
it should be a modified opinion in regards with the financial report of the company
(Silverman 2016). This standard help the auditor to give its modified opinion in
regards with the financial reporting of the financial statement of the company.

AUDITING AND ASSURANCE SERVICES
4:10 Emphasis of Matter Paragraph in the Independent Auditor’s Report
The standard is ASA 706 which show the responsibilities of the auditor in
regards with the matter paragraph and other matter paragraph in the Independent
Auditor Report it show what are the things auditor must check in regards with this
standard (Smith 2017). This standard applies to each audit of any financial report of
any financial year in regards with the Corporation Act 2001, and also to those audit
process which are done by the auditor of any financial report in regards with some
factors. It is also implied to all the audit process which are done in related to the
historical financial information. It is been operative from the date 15 December 2016
so each company have to follow this standard after its date. The objective of this
standard is to help the auditor to add some additional judgment in related to the
auditor report this means that auditor need to add many additional judgment related
to the financial report of the company (Sterling 2014). It should matters like the
events which are presented and disclosed in the financial statement but require more
attention of the financial user so this matters should be included by the auditor in it
audit report. Any other matter which is require to the financial user to understand the
audit process and audit report should be included the auditor in the Independent
auditor report. This standard have also define terms like Emphasis of Matter
paragraph and Other Matter paragraph so that the auditor would have a better
understanding of the term and hence it can do carry this auditing standard properly
(Walliman 2017).
The requirement of the emphasis of matter paragraph in the auditor report as
this paragraph help the auditor to draw the attention of the user of the financial
statement to certain events and matters which are been present in the financial
report of the company as this are the event which are required by the user to

AUDITING AND ASSURANCE SERVICES
understand the audit process and the auditor report in regards with the financial
reporting of the company so it should include these paragraph as than the auditor
will not modify its opinion in regards with the financial statement of the company and
also it also not identity any matters related to the key audit matters related to the
auditor report (Watty et al., 2014). So it can be see that the auditor should include an
paragraph so that it can help the financial users to know more about the audit and
how the report is been formed by the auditor. It help the financial users to know more
about the company and also what are the key matters which was found by the
auditor.
4:11 Codes of Ethics for Professional Accountants
This standard APES 110 which is related to codes of ethics for professional
accountants so this help the auditor to know about professional accountants and
how deal with the problem and how to overcome this problem (Xu et al., 2014). This
standard states some principle which should be followed by each and every
professional people so that it can help them to achieve their business goals easily.
The principle which are states in this standard are as the professional should
behave with integrity as it should be honest and straight forward with the duties of his
profession as it should do all his duties with proper planning and should execute
them properly (Zikmund et al., 2013). It should maintain the objectivity of its
profession as it decision should not be affected by the any management any third
party decision. It should have the require knowledge in regards with the professional
behavior as it should be knowledgeable in regards with the work it is working for. It
should do it profession by maintaining confidentiality of its client as it should keep its
client business information save and secure and should not provide them to any third

AUDITING AND ASSURANCE SERVICES
party. It should able to comply with all the rules and regulations related to the
profession and should work accordingly to the business.
This codes contain many threats related to the auditor and how it can affect
the audit report of the company. The threats are as self-interest threats in this the
auditor may have some financial interest in the company so to fulfill that it can
manipulate the audit report of the company. Self-review threats as the auditor had
done audit on its judgment so it can happen that the process if review by anyone
else may find some mistake in the audit process and which can affect the audit
quality. Familiarity threats as it can give auditor a threat that there is someone
working in the organization familiar to the auditor so this can affect the auditor
opinion in regards with the financial reporting of the company and there is also threat
of Intimidation threats as the auditor may be threats by the management to give
decision in regards with the management and if the auditor does not perform than
they will case in regard with the auditor so this can also affect the audit quality of the
auditor. It also contain many safeguards from which the auditor can decrease the
threat as it should act in professional while doing the audit process and it should
work according to the rules and regulation which are been mention by the codes of
conduct of the professionals.
Chapter 5: Implication of findings
5.1 Introduction
The information which is gathered from the above discussion and from the
annual report has been analyzed and interpreted in this chapter. This chapter show

AUDITING AND ASSURANCE SERVICES
how the company had follow the above points and how the different concept and
standard are been applied. Based upon the above findings the research question are
answered, the conclusion and recommendation is been given in the report.
5.2 Annual Report of the company
5.2.1 Business Risk
It means the risk related to the business that the business will have less
amount of profit compare to last year. In regards with the company it can be seen
that the company is not able to earn but have got loss in the current year that means
the company is not having proper business so this risk is occurring so to overcome
this company have to change its strategies and should try to capture the market by
making new marketing strategies (goldfields.com 2019).
5.2.2 Corporate Governance
The company has its own corporate governance scheme that complies with
the Corporate Governance Principles laid down by the ASX Corporate Governance
Council. The company’s Board of Directors are responsible for the corporate
governance activities of the company. The Board monitors and scrutinizes the
operational and financial performance and position of the Group. It is responsible for
optimizing the performance of the organization and building a sustainable
shareholder value. The Board has created an appropriate framework for the
management of the group and also adopted relevant internal control measures, risk
management processes and appropriate corporate governance policies and
procedures for proper management of the organization. The Board optimizes the
performances and builds sustainable values or the shareholders (goldfields.com
2019). It seeks to ensure that the Group actively manage, protect and enhance the
interests of the shareholder.

AUDITING AND ASSURANCE SERVICES
5.2.3 Audit Report
The audit report has been prepared by KPMG. The auditor has given the
Auditor’s Independence Declaration by following the Section 307C of the Corporation
Act of 2001. The independence report claimed that there were no contravention of
the independence and there were no contraventions of any professional codes in
relation to the audit process. The Auditor has given the audit report addressing the
shareholders and stated the opinion. It also mentioned the basis of the opinion and
stated that the audit report has been prepared in accordance with the Australian
Accounting Standards (goldfields.com 2019). The responsibilities are mentioned in
the Auditor’s responsibilities for the audit of the Financial Report section of the
annual report. The auditor stated that it has fulfilled their ethical obligations on the
basis of APES 110 Code of Ethics.
5.2.4 Key Audit Matter
The audit report contains the key audit matter related to the company as the
audit found that the impairment of asset was one of the key audit matters of the
company as the process which they are using was kept a doubt in the mind of the
auditors so they have done more research upon It (goldfields.com 2019). The
second key matter was the acquisition of Asanko Gold Mine as the fair value which
was determine by the company did not look appropriate so they consider is a matter
of audit. The third and last matters was the points which was discussed by them to
the directors are been consider as key audit matters and they have done their audit
keeping this points in mind.

AUDITING AND ASSURANCE SERVICES
5.2.5 Going Concern
The auditor found that the going concern assumption was the base from
which the audit report is been made as they did not found any reason related to the
fact that the company is going to stop their business process or something related to
that. It is assumed that the company will run its business for perpetual and there is
not early shutdown or liquidation of the company business.
5.2.6 True and fair view
The auditor have given their opinion as the company financial information are
showing true and fair view. That there is no material misstatements in the financial
books and the company have followed all the rules and regulation related to the
preparation and presentation of the financial books. There is no materiality affect in
the financial statement and the value which are shown by the company are true and
fair view and the financial user can take their decision according to the financial
report of the company (goldfields.com 2019).
Chapter 6: Conclusion and Recommendations
6.1 Conclusion
It can be conclude from the above discussions the concept of true and fair
view is very important for the company and also the concept of the going concern.
The goodwill of the company depends upon the both concept as if the company is
able to maintain its financial account by having a true and fair value than it will
increase their goodwill in the market. Corporate governance also play an important
role in the goodwill of the firm as if there is a very good governance in the company
than it will attract more number of the investors. Investors and the other financial
users always check the financial report of the company before taking any decision in

AUDITING AND ASSURANCE SERVICES
regards with the company reputation. So if the company follow all the accounting
standard properly than it will able to give a good impression of the company to the
financial user and it will able to get more number of investors for the business.
Lastly the report concludes how the Gold Fields Ltd strictly follow the
accounting standard and keep monitoring their accounting system by the managers
as well as the top executives. All the research question have been answered
properly in the findings and applications of findings and also the different accounting
concept are been explained in related to the company annual reports.
6.2 Recommendations
The company is on of the largest factory in Australia in spite of this there
some recommendations which can be given after doing the findings in the annual
report as it should calculate its business risk so that it can manage those risk and
able to fulfil its business objective. It is seen that the company is not having proper
profit but it is earning loss so it should change its marketing strategies so that it can
convert those loss in the profit and its should also needs much expansion and
diversification of business so that it can able to make number of profit and can able
to set up from the losses they made till now.

AUDITING AND ASSURANCE SERVICES
Reference and Bibliography
Abraham, R., Harris, J., & Auerbach, J. (2017). Earnings yield as a predictor of
return on assets, return on equity, economic value added and the equity
multiplier. Modern Economy, 8(10).
Agha, H. (2014). Impact of working capital management on profitability. European
Scientific Journal, ESJ, 10(1).
Ahmed, I. E. (2015). Liquidity, profitability and the dividends payout policy. World
Review of Business Research, 5(2), 73-85.
Alhazaimeh, A., Palaniappan, R., & Almsafir, M. (2014). The impact of corporate
governance and ownership structure on voluntary disclosure in annual reports

AUDITING AND ASSURANCE SERVICES
among listed Jordanian companies. Procedia-Social and Behavioral Sciences,
129, 341-348.
Australian Auditing Standards . (2019). Auasb.gov.au. Retrieved 1 May 2019, from
https://www.auasb.gov.au/Pronouncements/Australian-Auditing-Standards.aspx
Beattie, V. (2014). Accounting narratives and the narrative turn in accounting
research: Issues, theory, methodology, methods and a research framework.
The British Accounting Review, 46(2), 111-134.
Bicu, A., Chen, L., & Elliott, D. (2017). The leverage ratio and liquidity in the gilt and
repo markets.
Birt, J., Rankin, M., & Song, C. L. (2013). Derivatives use and financial instrument
disclosure in the extractives industry. Accounting & Finance, 53(1), 55-83.
Bloom, M. (2013). Double accounting for goodwill: A problem redefined. Routledge.
Bonin, H. (2013). Generational accounting: theory and application. Springer Science
& Business Media.
Brei, M., & Gambacorta, L. (2014). The leverage ratio over the cycle.
Camfferman, K., & Zeff, S. A. (2015). Aiming for global accounting standards: the
International Accounting Standards Board, 2001-2011. Oxford University
Press, USA
Carey, P., Potter, B., & Tanewski, G. (2014). AASB Research Report No.
Carraher, S., & Van Auken, H. (2013). The use of financial statements for decision
making by small firms. Journal of Small Business & Entrepreneurship, 26(3),
323-336.

AUDITING AND ASSURANCE SERVICES
Choi, Y. S., & Young, S. (2015). Transitory earnings components and the two faces
of non‐generally accepted accounting principles earnings. Accounting &
Finance, 55(1), 75-103.
Christensen, H. B., Hail, L., & Leuz, C. (2013). Mandatory IFRS reporting and
changes in enforcement. Journal of Accounting and Economics, 56(2-3), 147-
177.
Cordazzo, M. (2013). The impact of IFRS on net income and equity: evidence from
Italian listed companies. Journal of Applied Accounting Research, 14(1), 54-
73.
COUNCIL, B. (2016). Business Council of Co-operatives and Mutuals.
Creswell, J. W., & Poth, C. N. (2017). Qualitative inquiry and research design:
Choosing among five approaches. Sage publications.
Delen, D., Kuzey, C., & Uyar, A. (2013). Measuring firm performance using financial
ratios: A decision tree approach. Expert Systems with Applications, 40(10),
3970-3983.
Dennis, I. (2013). The nature of accounting regulation. Routledge.
Duska, R. F., Duska, B. S., & Kury, K. W. (2018). Accounting ethics. Wiley-Blackwell.
Dyckman, T. R., & Zeff, S. A. (2015). Accounting research: past, present, and future.
Abacus, 51(4), 511-524.
Easton, M., & Sommers, Z. (2018). Financial Statement Analysis & Valuation, 5e.
Edwards, J. R. (2013). A History of Financial Accounting (RLE Accounting).
Routledge.

AUDITING AND ASSURANCE SERVICES
Faello, J. (2015). Understanding the limitations of financial ratios. Academy of
Accounting and Financial Studies Journal, 19(3), 75.
Fernando, S., & Lawrence, S. (2014). A theoretical framework for CSR practices:
integrating legitimacy theory, stakeholder theory and institutional theory.
Journal of Theoretical Accounting Research, 10(1), 149-178.
Haller, A., & van Staden, C. (2014). The value added statement–an appropriate
instrument for Integrated Reporting. Accounting, Auditing & Accountability
Journal, 27(7), 1190-1216.
Holder, A. D., Karim, K. E., Lin, K. J., & Woods, M. (2013). A content analysis of the
comment letters to the FASB and IASB: Accounting for contingencies.
Advances in Accounting, 29(1), 134-153.
İmrohoroğlu, A., & Tüzel, Ş. (2014). Firm-level productivity, risk, and
return. Management Science, 60(8), 2073-2090.
Integrated Annual Reports | Shareholder information | Gold Fields. (2019). Goldfields.com.
Retrieved 1 May 2019, from http://www.goldfields.com/integrated-annual-reports.php
Joubert, M., Garvie, L., & Parle, G. (2017). Implications of the New Accounting
Standard for Leases AASB 16 (IFRS 16) with the Inclusion of Operating
Leases in the Balance Sheet. The Journal of New Business Ideas & Trends,
15(2), 1-11.
Kang, H., & Gray, S. J. (2013). Segment reporting practices in Australia: has IFRS 8
made a difference?. Australian Accounting Review, 23(3), 232-243.
Keloharju, M., Linnainmaa, J. T., & Nyberg, P. (2016). Return seasonalities. The
Journal of Finance, 71(4), 1557-1590.

AUDITING AND ASSURANCE SERVICES
Kim, S., Kraft, P., & Ryan, S. G. (2013). Financial statement comparability and credit
risk. Review of Accounting Studies, 18(3), 783-823.
Mankin, J. A., & Jewell, J. J. (2014). A sorry state of affairs: The problems with
financial ratio education. Mankin, JA & Jewell, JJ (2014). A Sorry State of
Affairs: The Problems with Financial Ratio Education. Academy of
Educational Leadership Journal, 18(4), 195-219.
Mayer, I. (2015). Qualitative research with a focus on qualitative data analysis.
International Journal of Sales, Retailing & Marketing, 4(9), 53-67.
Merkl-Davies, D. M., & Brennan, N. M. (2017). A theoretical framework of external
accounting communication: Research perspectives, traditions, and theories.
Accounting, Auditing & Accountability Journal, 30(2), 433-469.
Miller, P., & Power, M. (2013). Accounting, organizing, and economizing: Connecting
accounting research and organization theory. The Academy of Management
Annals, 7(1), 557-605.
Modarres, M. (2016). Risk analysis in engineering: techniques, tools, and trends.
CRC press.
Morales, J., & Lambert, C. (2013). Dirty work and the construction of identity. An
ethnographic study of management accounting practices. Accounting,
Organizations and Society, 38(3), 228-244.
Needles, B. E., Powers, M., & Crosson, S. V. (2013). Principles of accounting.
Cengage Learning.
Nobes, C. (2014). International classification of financial reporting. Routledge.

AUDITING AND ASSURANCE SERVICES
Omar, N., Koya, R. K., Sanusi, Z. M., & Shafie, N. A. (2014). Financial statement
fraud: A case examination using Beneish model and ratio analysis.
International Journal of Trade, Economics and Finance, 5(2), 184.
Otley, D. (2016). The contingency theory of management accounting and control:
1980–2014. Management accounting research, 31, 45-62.
Palepu, K. G., Healy, P. M., & Peek, E. (2013). Business analysis and valuation:
IFRS edition. Cengage learning.
Paul Pacter, C. P. A. (2013). IASB and FASB Convergence. Journal of Accountancy.
Rahman, A. R. (2013). The Australian Accounting Standards Review Board (RLE
Accounting): The Establishment of its Participative Review Process.
Routledge.
Robinson, T. R., Henry, E., Pirie, W. L., & Broihahn, M. A. (2015). International
financial statement analysis. John Wiley & Sons.
Silverman, D. (Ed.). (2016). Qualitative research. Sage.
Smith, M. (2017). Research methods in accounting. Sage.
Sterling, R. R. (2014). The theory of the measurement of enterprise income. In The
Development of Accounting Theory (RLE Accounting) (pp. 233-282).
Routledge.
Walliman, N. (2017). Research methods: The basics. Routledge.
Watty, K., Freeman, M., Howieson, B., Hancock, P., O’Connell, B., De Lange, P., &
Abraham, A. (2014). Social moderation, assessment and assuring standards

AUDITING AND ASSURANCE SERVICES
for accounting graduates. Assessment & Evaluation in Higher Education,
39(4), 461-478.
Xu, W., Xiao, Z., Dang, X., Yang, D., & Yang, X. (2014). Financial ratio selection for
business failure prediction using soft set theory. Knowledge-Based
Systems, 63, 59-67.
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research
methods. Cengage Learning.