AMP Limited Audit Report Analysis

This assignment presents an audit report for AMP Limited. The report analyzes various aspects crucial to the organization's operations, including auditor independence, non-audit services, key audit matters with procedures, and the type of auditor's opinion provided. It also highlights the responsibilities of directors and auditors, addressing missing materiality information. The analysis demonstrates the significance of audits in evaluating an organization's financial position.

Auditing , Assurance
and Compliance

EXECUTIVE SUMMARY
The assignment is about the audit, assurance and compliance. This report is consisted of
auditing of the AMP limited company. Report includes the various aspects of auditor reporting
which are beneficial for the organization in identifying the position of the company. The report
includes audit declared that with respect to the Corporation Act 2001 with relation to the audit
the organizations has fulfilled all the independence requirements of the auditors without any
infringement of laws. The directors of the organization were satisfied that the auditors fulfilled
all the conditions of non audit services with the general standards if independence for auditors
obligatory by the Corporations Act, 2011. In accordance with the auditors independence
requirements of the corporation act 2001 auditors are the independence of group. In report it is
clearly found that auditors has attendant financial statements of AMP limited which was
consisted of balance sheet as of December 31, 2017 and all the financial statements of income ,
cash flows and related notes to the financial statements. The directors of the organization is liable
for preparing the financial report which shows true and fair value according to the Australian
Accounting Standards and the Corporation Act 2001. By analysing the report it is found that
the organization has not implemented customers social responsibilities. Therefore, it can be
concluded that audit plays an important role in assessing position of the company.

Table of Contents
INTRODUCTION...........................................................................................................................5
A. Has auditor has compliance with independence requirements...............................................5
B.If there were non-audit services provided, what was the nature of such services...................5
C. Is there is an audit committee members in the AMP limited. ...............................................6
D.What type of Audit Opinion was expressed............................................................................6
E. Key audit matters of AMP limited..........................................................................................7
F. How directors and management responsibilities differ from auditors responsibilities. .......10
G. Were there any material subsequent events ........................................................................10
H. Recommending the effectiveness of materiality done by the auditors.................................10
I. Consider whether there is any material information which could be missing, under-reported
...................................................................................................................................................11
J. Providing an analysis of the Auditor’s remuneration in a table with prior year comparisons.
Include percentage changes and explanations of the remuneration..........................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
The assignment is about the auditing, assurance and compliance of the AMP Limited an
Australian company. It is a organization which deals with the financial. This organization serves
the superannuation, investment products , financial advice and banking products including loan
and saving amount. This research has focused mainly the audit of the company. Audit plays an
important role in analyzing the financial position of the AMP limited. The report will provide the
information about auditors independence requirements. The assignment will present the non
auditors services and their nature. It will also present the various members of committee. The
assignment will provide the deep insight of various key audit matters and their procedures.
Later, the report will provide the information auditor's responsibilities with comparison to
management and directors.
A. Has auditor has compliance with independence requirements
The auditors for the AMP Limited has compliance with independence requirements for
the financial year 31st December 2017. In his audit he has declared that with respect to the
Corporation Act 2001 with relation to the audit the organizations has fulfilled all the
independence requirements of the auditors without any infringement of laws. He has also
declared that no violation of any relevant code of professional conduct in relation to the audit.
B.If there were non-audit services provided, what was the nature of such services
During the year ended 31st December 2017 the audit committee has reviewed the details
of the amount which paid or yet to paid is given to the AMP group for the non audit services.
The directors of the organization were satisfied that the auditors fulfilled all the conditions of
non audit services with the general standards if independence for auditors obligatory by the
Corporations Act, 2011(Chan and Vasarhelyi, 2018).
Nature of non audit services
 The chief financial officer , or his nominated delegate, or the chairman of the Audit
Committee were approved the all non audit assignments.
 There are some Non Audit assignments which were specifically excluded by the charter
of audit independence of AMP were carried out.
 The fees which is offered for non – audit services is 12% of total fees, decreasing 9 % on
prior year.

C. Is there is an audit committee members in the AMP limited.
Audit committee members
Patricia (Patty) Akopiantz
AMP limited has appointed her in board and people remuneration committee in march
2011. she became chairman of that committee. She has been appointed as a director AMP bank
limited and later she became a audit committee member.
Andrews Harmos
He was appointed to the AMP limited board and it became member of the Audit
Committee. Andrews Harmos became the chairman of the audit committees in both the
organization in may 2016 .
Holly Kramer
In October 2015 Holly Kramer was appointed to the AMP limited board and later he was
appointed as a member of audit Committee in November 2015 (Marques, 2017).
Geoff Roberts : He was appointed to the amp limited as a chairman of the audit committee in
July 2016.
Therefore, the integrity of financial statements is the responsibility of the audit
committee of AMP limited. There are several more functions of the like supporting the decision
of the directors of internal audit and external auditor, and monitoring the performance ,
reviewing the effectiveness if AMP's risk management structure and satisfactory and
independence of the internal and external audit functions.
D.What type of Audit Opinion was expressed
Opinion
the financial reports of AMP limited and its subsidiaries has been audited by the auditors,
which is consisted of consolidated balance sheet , income statements, statements of
comprehensive income , the statement of changes in working capital, cash flow statements with
the summary of significant accounting policies and the directors declaration (Groomer and
Murthy, 2018).
The auditors opinion with respect to the financial report of the AMP Limited according to the
Corporation act 2001 includes-

 According to the auditors opinion, the amp limited has given a true and fair view of the
financial Position of the business including all the statements with the corporations act
2001
 Following with Australian Accounting Standards and Corporation Regulations 2001.
Basis for opinion
Audit has been conducted according to the Australian Auditing Standards. The
responsibilities of the auditor has been mentioned in the auditors responsibility for the audit of
the financial report section (Woiwode and et.al., 2016). In accordance with the auditors
independence requirements of the corporation act 2001 auditors are the independence of group.
They have fulfilled ethical requirements of accounting and ethical standard boards with
relevance 110 codes of ethics for professional accountant. The other ethical responsibilities in
accordance with the Code has been fulfilled by the auditors.
E. Key audit matters of AMP limited.
Key audit matters are those which plays important role in the auditors professional
judgment and very much significant in their financial report of the current year. There are some
matters identified by the auditors with respect to the financial report. Following are the matters
which auditors have discussed are mentioned under.
Valuation of life insurance policy liabilities.
Audit matters Audit procedures
The total contract liabilities $23,683 million
and it depicts the 17% of total liabilities.
The future claims for the settlement of future
includes complex and subjective judgments
for the upcoming events, for micro and macro
environment of the business. The little bit
change in assumptions can have material
effect on the rating of these possessions.
Policies of liabilities includes some
assumptions are discussed under -
 Discount rates
The procedure of audit includes the following
the auditors has assessed that AMP limited has
full control on the recording of new
business ,rehabilitation and welfare processes.
Auditors have evaluated related information
technology and the design for operating
enhancement to the contract liabilities
valuation.
The unit pricing process is being examined ,
which involves assessment of design and

 inflation and indexation
 Forecast lapse rates, particularly for
wealth protection book of business
 future maintenance and investment
expenses Taxation
 Surrender values Mortality and
morbidity
testing controls associated with the process.
The recalculation of the total investment
contract liabilities have been done with the
systems activity process , consistent the
investments declaration possession to the fair
value of inherent assets.
Valuation of complex and non- liquid financial statements
Key matters Key procedures
The 92 % of total assets has been represented
and the investments in financial assets are
$136,675 in total.
The requirements by accounting standards has
been fulfilled by categorizing the 3 levels of
note 2.5 , the portfolio in accordance with the
fair value of heir achy. The best estimates of
fair value the assets are exercised by the AMP
group .
For all level the valuation specialist and model
ling methodologies were used in prevailing the
key market conditions.
Assets are recorded within controlled unit
trusts and there were not the necessities of
specific local reporting. The auditors have don
the valuation according to the sample provided
by external investment manager.
Recoverability of goodwill and intangible assets
Audit matters Audit procedures
The 2 % of total assets were represented. And
goodwill and intangible assets were $3,218
million.
The goodwill of AMP limited has been
recognized by representing the fair value of
assets acquired. The goodwill has been
allocated to the applicable cash generating
units.
The requirement of Australian accounting
standards possess the impairment assessment
purposes by the AMP Limited.
Discount rate has been used in the assessment
of methodologies and assumptions by
including as the rate of market benchmarks.
The sensitivity analysis on key assumptions
has been informed by including the

The during historical acquisition were
acquired by the networks of distribution and in-
force contract for intangible assets
components of discount rate.
To calculate the value of the new business the
auditors has assessed the value of one year's
new business.
The auditors has stated that the AMP limited
has earned the goodwill is being allocated in its
financial statements at the time of disclosure
with the related accounting standards
(Marques, 2019).
The group has performed the tested
mathematical accuracy of the assessment. The
auditors have assessed the methodologies used
by the AMP groups for impairment assessment
purposes to evaluate the dynamic
circumstances that says carrying amount is not
recoverable.
To assist in the testing of recoverable amount
models and assumptions by the AMP group is
undertaken by the impairment assessment.
Therefore, the auditors have involved some
specialist required for that procedure.
Information technologies environment
Audit matters Audit procedures
The associated IT controls and information
technologies systems plays an important role in
the operations of AMP limited.
Appropriate users access management is
ensured by the fundamental components of IT
controls.
The audit procedures includes-
the auditors have assessed all the IT
environment and the controls over it. The
auditor have tailored the financial significance
of system and whether there were automated or
not.
The performed procedures is consisted of

investigating the AMP groups over suitable
approach rights for relevant applications.
The procedure includes -
auditors have identified the in appropriate
changes made in information technologies
systems and data base.
The design and operating effectiveness of
compensating controls has been assessed.
F. How directors and management responsibilities differ from auditors responsibilities.
The directors of the organization is liable for preparing the financial report which shows
true and fair value according to the Australian Accounting Standards and the Corporation Act
2001. whether due to fraud and error directors of the AMP limited has determine the
misstatement which are necessary.
As organization is the continuous process so while preparing the report the directors are
liable for assessing the ability of AMP limited (Alles and et.al., 2018). Using going concern basis
of accounting directors are responsible to take cares of disclosure and the matters relating to
going concern. Talking for the auditors responsibility, which is totally different from managers
and directors. The main objectives of the auditors is to analyses the reasonable assurance that the
financial report presented by the directors includes whole report of organization workings or if
there is any fraud or misstatement due to fraud and error. The assurance of the auditors is a high
level assurance. It do not ascertain that audit which has been conducted by the auditors by the
AAS will always triggers the material misstatement when it exists. Misstatement can be drawn
from fraud or error.
G. Were there any material subsequent events
No, the AMP limited do no have any material subsequent events.
H. Recommending the effectiveness of materiality done by the auditors.
In report it is clearly found that auditors has attendant financial statements of AMP
limited which was consisted of balance sheet as of December 31, 2017 and all the financial
statements of income , cash flows and related notes to the financial statements. The auditors has
conducted the audit according to the Australian accounting standard . In the AMP group report
Those norms are necessary that are program and executed by auditor to acquire appropriate

assurance about whether the financial statements are free of material misstatement. An audit
consisted of study, on a test basis on the grounds supporting of sum and disclosures in the
financial statements. Auditors have also includes evaluation the accounting principles utilized
and important calculation successfully created by management, or measure overall financial
statement presentation. Auditor has covered all the information of materiality very well in the
report
I. Consider whether there is any material information which could be missing, under-reported
The report has almost covered all the information which is mandatory. By analyzing the
report it is found that the organization has not implemented customers social responsibilities.
CSR is a internal organizational policy (Knechel and Salterio, 2016). CSR helps in changing the
business beliefs , practices and profits. In CSR company overtook the responsibilities for the
social and environmental impacts of businesses operations. The implementation of customers
social responsibility provide lots of benefits to the AMP Limited.
Following are the benefits of the implementation of CSR
 It provide lots of benefits like improving the brand of company's.
 It helps in engaging customers.
 It helps the organization to stands out from the competitions.
 It attracts more investors for the investments in business.
J. Providing an analysis of the Auditor’s remuneration in a table with prior year comparisons.
Include percentage changes and explanations of the remuneration
Particulars 2015 2016 % change 2017 % change
Total audit services fees(cons) 11761 6616 -0.44 6931 0.05
Total non audit services fees(cons) 3421 1693 -0.51 1599 -0.06
Total audit services fees (other
entities) 140 7041 49.29 7280 0.03
Total non audit services fees (other
entities) 0 396 0 305 -0.23
The above report is reflecting the remuneration report of past three years that are 2015 ,
2016 and 2017. It can be observed in the report that from 2016 to 2017 the auditors remuneration
has been decreased creased by 0.45 % in total audit service fees. In total non audit services the

fees has been decreased from the year 2016 to 2017 by 49.26 % which is due to. In the total
audit fees for the other entities for the year 2016 to 2017 it has been increased by 0.03 % and in
non audit fees has also increased by decreased by 0.23%.
CONCLUSION
The above report is the audit report of the AMP Limited. This report makes the
involvement of the process and importance of auditing and compliance within company. For
every organization audit is very important task to be done periodically. The report is based on the
audit of the company which includes various aspects which are necessary for the organization to
be covered. The report has covered the complied independence requirements of the auditors ,
non audit services and its nature. Key audit matters of the organization's has been also discussed
with their procedure. The report has also provided the type of auditors opinion, with directors
and auditors responsibility. The report has covered missing materiality information. Therefore, it
can be concluded that audit plays an important role in assessing position of the company.

REFERENCES
Books and Journals
Knechel, W.R. and Salterio, S.E., 2016. Auditing: Assurance and risk. Routledge.
Alles, M., Brennan, G., Kogan, A. and Vasarhelyi, M.A., 2018. Continuous monitoring of
business process controls: A pilot implementation of a continuous auditing system at
Siemens. In Continuous Auditing: Theory and Application (pp. 219-246). Emerald
Publishing Limited.
Marques, R.P.F., 2019. Continuous Assurance and the Use of Technology for Business
Compliance. In Advanced Methodologies and Technologies in Business Operations and
Management (pp. 429-441). IGI Global.
Woiwode, R. and et.al., 2016. Compliance of large feedyards in the northern high plains with the
Beef Quality Assurance Feedyard Assessment. The Professional Animal Scientist. 32(6).
pp.750-757.
Chan, D.Y. and Vasarhelyi, M.A., 2018. Innovation and practice of continuous auditing. In
Continuous Auditing: Theory and Application (pp. 271-283). Emerald Publishing Limited.
DeFond, M. and Zhang, J., 2014. A review of archival auditing research. Journal of
Accounting and Economics. 58(2-3). pp.275-326.
Groomer, S.M. and Murthy, U.S., 2018. Continuous auditing of database applications:
An embedded audit module approach. In Continuous Auditing: Theory and Application (pp. 105-
124). Emerald Publishing Limited.
Marques, R.P., 2017. Continuous assurance and business compliance in enterprise
information systems. In Enterprise information systems and the digitalization of business
functions (pp. 99-119). IGI Global.
ONLINE
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