Audit Responsibility and Corporate Governance

Running head: AUDITING & ASSURANCE
Auditing & Assurance
Name of the student:
Name of the University:
Author’s Note:

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AUDITING & ASSURANCE
Table of Contents
Introduction................................................................................................................................4
Audit responsibility towards maintain corporate governance....................................................4
Decision making depending on AAA Model.............................................................................6
Developing a reporting to managing partner of SBF.................................................................9
Introduction............................................................................................................................9
Identification and the evaluation of the issues.......................................................................9
Opinion.................................................................................................................................11
Conclusion................................................................................................................................12
References:...............................................................................................................................13

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AUDITING & ASSURANCE
Executive Summary
The study sheds light on the audit and audit assurance where the audit responsibility has been
analysed and evaluated. The report explains the responsibility of SBF as an external auditor.
This identifies the audit member’s responsibility towards maintain ethics into the audit report
and controlling the material misstatement into the financial statement. The report provides
idea on the FFA’s possible safeguards that could have been taken by the company to reduce
the misconduct into the audit management. Further this identifies the decision making
process depending on the AAA model which would help in reducing the material
misstatement into the financial statement. Finally the report develops an audit report to the
management partner of the SBF addressing the responsibility of the SBF towards their client
FFA and TRC and this has been supported with an opinion from the audit member to make
the audit quality better.

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AUDITING & ASSURANCE
Introduction
The audit responsibility refers to the identification of the auditor’s duty on
representing fair value of the company’s financial statement into the audit report. This has a
responsibility of identifying errors into the company’s financial statement and verifying
information served by the board members. An audit responsibility also reflects a auditor’s
duty to work into public and other stake holders’ interest. However the external auditor also
verifies the internal audit report. Hence, the study identifies the Audit and audit assurance
depending on the external auditor’s responsibility towards FFA. The SBF’ responsibility
towards maintaining the ethics into the organization through reducing the material
misstatement and management misconduct has been identified. Lastly, the report develops an
audit report to the managing partner of the SBF addressing the responsibility of SBF for their
client company and provides an opinion on the same.
Audit responsibility towards maintain corporate governance
The audit firm has a responsibility of reviewing the financial statement of their client
company. Therefore with the responsibility of reviewing the corporate governance, the SBF
recognises material misstatement in to the financial statement which is needed to be reviewed
by the Samantha Gabriell. However depending on the Steve Barker’s reporting this has been
recognized that there is misstatement in the revenue recognition of the cattle sales. As pert the
ASIC to make an overview of the impairment where the necessary cash flow, assumptions
and material misstatement between cash flow used and assets tested needed to be recognized
(Asic.gov.au, 2019).
To rectify the mistake of the Samantha Gabrielle few advices has been given based on
the auditor’s responsibility.