Auditing and Assurance: Evaluating Financial Reports of Woolworths Limited

Running head: Auditing and Assurance

Auditing and Assurance 1
Executive Summary
An exercise whose aim is to enable the auditors to form an opinion on the authenticity of the
financial reports, relating to the areas of operations of the entity, at the end of period is termed as
Auditing Guidelines. It evaluates whether the financial reports have been executed in accordance
with applicable laws and regulations and the regulatory and other provisions have been met with.
In this context, the Australian Auditing Standards Board (AASB) has formulated the standards of
financial reporting relating to the entities operating in the public and the private sector of the
Australian economy. Some of the relevant standards in this regard are ASA701, ASA 315 and
ASA 570. While ASA 701, ‘Reporting Important Audit events in the Independent Auditor’s
Report’ is a newly presented Auditing guideline which is implemented on the financial reports
for the period ending on or after 15 December,2016.It is concerned with assessor’s duty to record
the important audit events in the assessor’s documents.
ASA 315 deals with identification and the assessment of the risk related to material errors and
deceptions through evaluation of the organization and its environment. ASA 570 illustrates the
duty of the assessors in the audit of the entity, to determine its capability to continue its
operations in the future. In this report, the explained auditing standards are applied to the
financial reports of Woolworths Limited by Deloitte Touche Tohmatsu. The result of their
evaluation is also revealed herewith.

Auditing and Assurance 2
Table of Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Introduction of the Company......................................................................................................................3
Evaluation of the risk associated with Substantial Mismanagement...........................................................4
Auditor’s Evaluation regarding the areas associated with the risk of substantial mismanagement........5
The impact on the audit of important transactions which occurred during the period..............................5
Events affecting the company’s capability to remain as a successful entity and its impacts.......................6
Recommendations/ Conclusion...................................................................................................................7
References...................................................................................................................................................8