Auditing and Ethics

Running head : AUDITING AND ETHICS
AUDITING AND ETHICS
Name of the Student
Name of the University
Author Note

AUDITING AND ETHICS
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Table of Contents
Section 1.....................................................................................................................................2
Section 2.....................................................................................................................................2
Section 3.....................................................................................................................................6
References..................................................................................................................................9

AUDITING AND ETHICS
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TPG Telecom Limited is an Australian telecommunication and Information Technology
company that has its specialisation in consumer and business internet services and mobile
telephone services. TPG Telecom Limited as of august 2015 is considered as the second
largest provider of internet services in Australia and is considered as the largest mobile
network operator (2019 Tpg.com.au). The formation of the Information Technology giant
TPG Telecom Limited was on account of a merger between the Total Peripherals Group,
whose establishment was in the year 1986 by David and Vicky Teoh and SP Tele media in
the year 2008/. In the year 2018, TPG and Vodafone Hutch son Australia made an
announcement of their intention to merge the company (2019 Tpg.com.au).
Section 1
The level of materiality of TPG Telecom Limited that is to be used for the audit of the group
accounts for the year ended 2018, is calculated on the basis of the total assets that is 2 percent
of AUD 5416.4 Million, that is AUD 108.328 Million (2019 Tpg.com.au).
Materiality refers to the concept or convention that comes within auditing and accounting
relating to the significance of an amount, transaction or any kind of discrepancy. The main
objective of an audit of the financial statements is to enable the auditor to express an opinion
that the financial statements that are prepared in all material aspects are in conformity with an
identified financial reporting framework such as the Generally Accepted Accounting
Principles (2019 Tpg.com.au).
The financial statements of TPG Telecom Limited has been reviewed. Based on the review of
the various draft notes in the financial statements, the disclosures have been taken into
consideration. The important aspects that may have significance to the audit are as follows:
Particulars Amounts [000]
Salaries and fees to the Executive director 1610

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Fees and salaries of the Non -Executive Directors 365
STI cash bonus 1600
Non monetary benefits 145
Total 3355
Superannuation benefits 25
Other long term benefits 27
Total 3407
Section 2
The apparent trends and the changes in the ratios have been studies and the following
conclusions have been drawn (2019 Tpg.com.au). All the figures are mentioned in AUD
millions.
The net profit margins of TPG Telecom Limited for the years 2016, 2017 and 2018 are 36%,
36% and 34% respectively. The net profit margins are not very favourable in the past 3 years.
Above that, it has shown a declining trend in the year 2018 (2019 Tpg.com.au). It is an
indicator that the company does not keep the potential to come up with promising results in
the years to come.