Auditing, Assurance & Services: A Deep Dive into ASA 701 and ASA 570

Auditing, Assurance & Services

Executive summary:
Auditing is an important event which is conducted to ensure the true and fair view of financial
statements. ASA 701 and ASA 570 are related to investor interest and this assessment is made to
give depth knowledge of these auditing standards. ASA 701 “Communicating Key Audit Matters
in the Independent Auditor’s Report” explains the liability of auditor to disclose the Key matter
of financial statement which is founded in the auditing process. ASA 570 “Going Concern” also
defines the responsibility of auditor to investigate and report the going concern ability of a listed
company.
Present scope: AGL energy limited, ADX-energy limited and Acacia Coal Limited is leading
companies in Australia which is engaged in the generation and distribution of energy resources.
The assessment explains the auditor discloser requirements about the key matters under ASA
701 and ASA 570. On the basis of this assessment, the user will be able to understand the key
facts of these two standards along with the disclosers which are made by the auditors of above
companies.

Table of Contents
Introduction:....................................................................................................................................4
ASA 701 “Communicating Key Audit Matters in the Independent Auditor’s Report”..................5
ASA 570 “Going Concern”...........................................................................................................11
Conclusion:....................................................................................................................................15
References:....................................................................................................................................16

Introduction:
ASA 701 and ASA 570 are going to be explained in this report and the explanation is based on
the responsibility of auditor regarding the compliance and reporting of going concern assumption
and key auditing matter. The report describes the ASA 701 “Communicating Key Audit Matters
in the Independent Auditor’s Report” along with the scope of the standard and mean of key
auditing matters. The report also includes an overview of the Key auditing matters of three ASX
listed companies which are reported by the auditor of these companies. ASA 570 “Going
Concern” is also going to be explained in this report. The explanation includes the scope of
standard and applicability of standard along with the responsibility of auditor and management.
After the learning of this description, the learner will be capable to deeply understand the object
and importance of these two auditing standards.