Auditing and Assurance Services

Running head: AUDITING AND ASSURANCE SERVICES
Auditing and assurance services
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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