AUDITING AND COMPLIANCE 11 Auditing and Compliance University Name

Running head: AUDITING AND COMPLIANCE
Auditing and Compliance
University Name
Student Name
Authors’ Note

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AUDITING AND COMPLIANCE
Table of Contents
Executive Summary:..................................................................................................................3
ASX Corporate Governance Principles:....................................................................................3
Risk Assessment:.......................................................................................................................7
References list:.........................................................................................................................11

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AUDITING AND COMPLIANCE
Executive Summary:
In the present study, a methodological and ordered approach of conducting audit is
considered that helps in understanding and evaluation of associated control and procedures.
The study takes into consideration the compliance that is necessitated for augmentation of
business of value of business. The particular task is about explanation of ASX and corporate
governance principles of Boral limited and explanation of its risk management procedures.
Risk faced by business has been analyzed using the financial ratio computation and later part
depicts the several steps taken for reducing the risks associated with audit.
ASX Corporate Governance Principles:
The corporate governance framework of Boral limited is outlined in the corporate
governance statement that is committed for ensuring the practices and policies reflecting high
standard corporate governance. Arrangements of governance throughout year 2017 were
consistent with the corporate governance recommendations and principles outlined by ASX
corporate governance council (Baldauf et al. 2015).
The Corporate Governance policy structure of Boral limited is as follows:
Enforcing an efficient foundation for oversight and management:
The management of Boral limited operates in accordance with the approved policies
of the board and delegated restrictions of authority set out in accordance with the
management guidelines of Board. Board of Boral is responsible for guiding the development
of strategy and monitoring the implementation. It is actively ensured by the board that it has a
proper mix of diversity, experience, skills and expertise that would enable them to discharge
their responsibilities in an effective way and facing any challenges by being well equipped

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AUDITING AND COMPLIANCEfor assisting organizations to navigate through available opportunities. Moreover, the key
management recommendations such as divestments, acquisitions, funding and restructuring
by making and considering decisions. Skills matrix is utilized by board that provide
assistance in identifying areas of maintaining and focusing on a diverse and appropriate mix
in its membership (Decaux and Sarens 2015).
Value addition by way of board structuring:
The constitution of board provides that there will be maximum twelve directors and a
minimum of three directors on board. Board of directors of Boral comprises of one executive
director being the managing director and CEO and seven non executive directors. It is
provided by the constituent that the same individual cannot exercise role of managing
director, CEO and chairman. Chairman on the board is selected from the non executive
independent directors. In addition to this, the independence of non executive director in light
of positions, interest, relationship and associations are assessed by the board. The
combination of individual director, experience, skills and expertise benefits the board along
with the varying insights and perspective that arises from the director’s interaction having
varied background (Lenz and Hahn 2015).
Acting in a responsible and ethical way:
An ethical and legal standard of behaviour is expected by the people of Boral limited
that are laid out by supporting policies and code of business conduct and the company
adheres to ethical and legal standards seriously. 35 employees in Boral North America and
Boral Australia were dismissed during financial year 2017 for seriously breaching the
policies mainly for breaching the rules of safety. People of Boral are able to report on illegal
acts, possible frauds and any misconduct by accessing to independent and external whistle