Auditing and Assurance: Key Audit Matters, Remuneration, and Subsequent Events

AUDITING AND ASSURANCE

EXECUTIVE SUMMARY
Since 2016, a strong urge is being made for enhancing the quality of the financial reporting. A
new introduction has been made in the independent audit report called “ Key Audit Matters”
which are aimed at providing the key matters that are of significant importance and shouldn’t be
ignored by the intended users at any cost using “ Plain English”. The new audit reporting
requirements have been brought into effect in December, 2016 by nations like Australia and New
Zealand.
The new international and Australian reporting requirements will be the basis for financial
reporting that demands transparency about the operations of the company & responsibilities of
auditors as well the matters considered as of key importance by the auditors.
Thus, the dream of having an enhanced auditor reporting would be a reality very soon.

Contents
INTRODUCTION...........................................................................................................................3
AUDITOR’S REMUNERATION...................................................................................................4
KEY AUDIT MATTERS................................................................................................................5
AUDIT COMMITTEE....................................................................................................................7
AUDITOR’S OPINION AND REPONSIBILITY..........................................................................9
MATERIAL SUBSEQUENT EVENTS.......................................................................................11
ASSESSMENT FROM A THIRD PARTY’S POINT OF VIEW................................................12
CONCLUSION..............................................................................................................................13
Bibliography..................................................................................................................................14

INTRODUCTION
The reports of Woolworths Limited have been audited by one of the big four audit companies,
that is, Deloitte. At Deloitte, the ethical behavior and the professional conduct is of some serious
concern for everyone at whichever level they belong to. The strength of a role is determined by
one's actions. One of the most valuable parts of Deloitte is Integrity (Taillard, 2013). The ethical
values, the professionalism rules are not some mere philosophy but a powerful tool that acts as a
guide for all the professionals to take up the right actions and correct decisions, whatever the
situation may take place. The Code Of Ethics and Professional Conduct is guided by the Global
Principles of Business Conduct that sets a standardized framework for the professionals of
Deloitte who have to restrict themselves within that framework wherever in the world they might
be serving.
Having a reputed name worldwide and being so much committed to its principles, the auditor has
complied with the independence requirements. The auditor's independence declaration,
according to section 307C of the Corporations Act 2001, in the financial reports is an
authorization from Deloitte that being a lead audit partner, it declares to the best of its knowledge
and belief that there has been no violation of applicable professional conduct and independence
requirements of the auditor related to the audit of the company (Alvarez, 2013).