Auditing: Process, Ethics, and Risks for Mayne Pharma Group Limited

Running head: AUDITING
Auditing
Name of the Student:
Name of the University:
Author’s Note

AUDITING
1
Executive Summary
The main purpose of the assessment is to conduct a detailed analysis of the process of audit and
the ethical considerations an auditor is expected to adhere to while performing audit for a
business. The assessment considers the company of Mayne Pharma Group Limited which is
engaged in medical industry in Australia. The assessment identifies the businesses risks and audit
risks associated with the company. In addition to this, the assessment also shows the computation
of planning materiality for the business.

AUDITING
2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Part A...........................................................................................................................................3
Application of Ethics in Audit.....................................................................................................3
Ethical Considerations to be considered......................................................................................4
Part B...........................................................................................................................................4
Areas of Operations.....................................................................................................................4
Legal Statutes Affecting the Business.........................................................................................5
Business Risks affecting Mayne pharma group limited..............................................................6
Key Assertions.............................................................................................................................7
Corporate Governance.................................................................................................................9
Planning Materiality....................................................................................................................9
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

AUDITING
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Introduction
Auditing is regarded as a dynamic process which investigates the books of accounts in
order to establish whether the same are free from material misstatements or not. The assessment
consists of two parts which is part a and part b which is related to the audit process for a
business. The first part of the assessment deals with the roles of ethics in auditing process and the
ethical consideration which an auditor must consider before accepting an audit. The second part
deals with the business of Mayne Pharma Group Limited for which a detailed audit process is to
be conducted showing all business risks and the key accounts which are affected. The assessment
would also be showing computation of planning materiality of the business.
Discussion
Part A
Application of Ethics in Audit
Ethics in auditing process is considered to be important in today’s scenario as the same
promotes ethical practices in the process and requires the auditors to maintain the integrity o the
profession. The importance of ethics has enhanced further due to various corporate scandals
which has taken place due to unethical accounting practices. APES 110 has been introduced in
order to ensure that the auditors and other accounting professionals follow code of ethics which
are applicable to them. The auditor of a business is required to maintain integrity which means
that he should be straight forward and honest in all his professional dealings. The second
principle is objectivity which requires auditors to be impartial and his judgement should not be
clouded by conflict of interests or biasness (Bentley, Omer & Sharp, 2013). The auditor needs to
maintain a independent approach while dealing with his audit duties and should not come under