Auditing And Assurance Services Structure

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

AUDITING AND ASSURANCE1
Executive Summary
This current report has focused on the audit and assurance services that are provided to the
organizations of a particular industry. In this study, health sector industry has been chosen
which points out the different company that deals with health services. The requirement and
analysis of the ASA 701 has been described along with the trends and issues in auditing and
assurance services. The key audit matters in the report of the independent auditor have been
discussed along with analysis of the reports. The annual report of the selected companies
have been selected which mainly includes the report from the auditor and that has already
been addressed in the study.

AUDITING AND ASSURANCE2
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
ASA 701 Communicating KAM............................................................................................3
Communicating Key Audit Matters in the recent annual report for –...................................5
 Sigma Healthcare Limited...........................................................................................5
 Ansell Limited.............................................................................................................6
 Ramsay Health Care....................................................................................................8
 CSL Limited................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................12

AUDITING AND ASSURANCE3
Introduction
The auditor's reporting has been criticized many times for its less information about
the company in its report. Earlier, the investors or the users not find the reports prepared by
the auditors much relevant to them while making financial decisions. As they find it difficult
to understand and find the major areas of the company where the risk can be present with
their money. The Australian auditing board brought a concept of KAM that is Key Audit
matters as per the investors need in order to maintain transparency and provide by providing
relevant information to the users in the audit report. The new standard ASA 701 Key Audit
Matters (KAM) tends to represent those audit matters that have more importance in the audit
report prepared by an auditor while auditing a financial statement. The report aims to do
research and critically analyze the key audit matters in their independent auditor's report. The
discussion made within the report has explained ASA 701 KAM clearly. The report has
discussed several key audit matters of different organizations of an industry. The industry
chosen here for preparing this report is the health care industries that cover approx. 9% of the
market capitalization of Top ASX 100 listed companies. The health care industry is
considered as the fourth largest contributor to the GDP of the nation. The report is prepared
with a proper study of the annual report of the selected companies. At last, the importance of
ASA 701 has been suggested that is to be maintained by the auditors so that to meet the
requirements of the users.
Discussion
ASA 701 Communicating KAM
The Key audit matters can be defined as the matters that have more significance as
per the judgment of the auditor in the auditing of a company’s financial statement of a
specific period. Paragraph 8 of ASA 701 Communicating Key Audit Matters defines key