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Audit Assurance and Compliance - Assignment

   

Added on  2021-01-02

13 Pages3687 Words480 Views
AUDITINGASSURANCE ANDCOMPLAINCE

EXECUTIVE SUMMARYThis project summarises concept of audit, assurance and compliance. In this presentassignment, BHP Billiton's annual report will be assessed for present a proper understanding onthe auditing process. Numerous core audit matters has been evaluated in this paper with auditcommittee suggestions in order to prepare an audit report of organisation and analyse itaccordingly.

Table of ContentsEXECUTIVE SUMMARY.............................................................................................................2INTRODUCTION...........................................................................................................................1Overview of the company......................................................................................................1Auditor's independence declaration........................................................................................1Non audit services formed by the auditor...............................................................................2Auditor's remuneration...........................................................................................................3Role, functions and composition of the audit committee.......................................................4Audit Opinion.........................................................................................................................5Key Audit Matters..................................................................................................................5Responsibilities of Director, manager and auditor.................................................................8Assessment of the effectiveness of the material information reported by the auditor...........9Follow up questions from auditor in AGM............................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10

INTRODUCTIONAudit refers to the process of analysing annual reports, accounts, vouchers of a businessenterprise to analyse that the financial and non-financial statements shows the actual position ofthe company or not (what is auditing, 2017). The auditor is liable to check the annual reportsphysically and give his opinion on those reports. The main reason behind audit is to ensure thatthe transactions recorded in financial statements are fair or not, and is there anymisrepresentation in the reports. Auditor is the person who is appointed by the executives of anorganisation and responsible to analyse annual reports of a company and then prepare a reportwhich is based on his opinion. The company chosen for this report is BHP Billiton Ltd, which isa metals and mining company.This project report is based on auditor's independence declaration and his report, non-audit services performed by the auditor, auditor's remuneration, audit committee and its rolesfunction and composition, independent auditor's report to the shareholders and key audit mattersassociated and noted in audit procedure.Overview of the companyBHP Billiton Ltd is a global resources company, which is a producer of differentcommodities like iron ore, uranium, copper, metallurgical coal etc. It has four segments that arecopper, coal, petroleum and iron ore (Mills, 2012). These segments are occupied by differentproduction such as coal involves mining of metallurgical coal and thermal energy, coppersegment is engaged with excavation of silver, lead, zinc, gold, copper uranium etc., thepetroleum segment is concerned with development, exploration of oil and gas. The productdistribution of the company is managed through global logistic chain of the organisation. Theproducts are sold by the organisation through supply agreements with its clients. It has threeoutlets, Minerals Australia, Minerals America and Petroleum and Marketing.Auditor's independence declarationAuditor's independence: It refers to the independence of internal as well as externalauditors from the parties who may have financial involvement in the business which is going tobe audited by the auditor. It requires honesty and a neutral formulation to the audit procedure.The auditor of the company is liable to present actual and original information to the1

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