ACC3AUD - Auditing & Assurance Assignment

Running head: AUDITING & ASSURANCE
Auditing & Assurance
University Name
Student Name
Authors’ Note

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AUDITING & ASSURANCE
Executive Summary
Audit is essentially an objective exam and analysis of the financial assertions of a corporation
that can make certain that the records of the firm are reliable. The present report aids in
understanding the business of the client Billabong International together with the industry in
which the firm operates. In addition to this, the current study also helps in gaining deep
insight into the significant business risks as well as audit risk of the firm.

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AUDITING & ASSURANCE
Table of Contents
Introduction................................................................................................................................2
Overview of the business of the client Billabong......................................................................2
Overview of the industry............................................................................................................3
Significant risks and audit risks for Billabong...........................................................................5
Identification of Five Significant Business and Audit Risks.....................................................5
Analysis using financial statements...........................................................................................8
Material Misstatements............................................................................................................10
Going Concern.........................................................................................................................11
Social Responsibility................................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14

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AUDITING & ASSURANCE
Introduction
The current study essentially presents a complete review of compliance audit that speaks
about the organization's adherence to different regulatory strategies with special reference to
the operations of Billabong International Limited, Australia. The present study presents an
official inspection of different accounts of the corporation, financial inspection along with
systematic as well as independent assessment of books of accounts, company literature
together with diverse vouchers of corporation. This can help in determining the business risks
as well as audit risk that can aid in determining the extent to which the financial statements of
the firm presents true and fair view.
Overview of the business of the client Billabong
The core business of the company Billabong International Limited is essentially an Australian
clothing corporation that carries out marketing, suitable distribution, both wholesaling as well
as retailing of garments, accessories, swimsuits, eyewear and hardgoods among many others.
The company Billabong established during 1973 on Australia’s Gold Coast has license of
operations in over and above 100 nations and are offered in nearly 10000 locations across the
world (Billabongbiz.com 2017). The brands of the company are appropriately marketed and
at the same time promoted worldwide through different associations with professional
athletes, specific junior athletes, different brand advocates as well as events. The major
proportion of revenue is created and acquired by means of different wholly-owned functions
in areas such as Australia, Brazil, North America, New Zealand, Europe, Japan, and South
Africa. The business concern Billabong has roughly 4,000 members of the staff throughout
the world and the company’s shares are essentially publicly listed on ASX (Australian
Securities Exchange). Billabong’s products are well distributed by means of focused