Analysis of IOOF Ltd: Business Risks, Material Misstatements, and Corporate Governance Compliance
Added on 2022-11-29
12 Pages2691 Words118 Views
Running head: AUDITING
Auditing
Name of the Student:
Name of the University:
Author’s Note:
Auditing
Name of the Student:
Name of the University:
Author’s Note:
AUDITING
1
Executive Summary
The main purpose of the assessment is to analyse the business of IOOF ltd which is engaged in
providing financial services to the clients. The assessment shows the major business risks which
can affect the profit generating capabilities of the business and what steps are undertaken by the
management of the company for reducing such risks. The assessment also shows identification of
major accounts which are likely to be affected by material misstatements and what are the key
assertions of the same. In addition to this, the assessment also evaluates whether the management
of the company complies with Principle 4 of Corporate Governance recommendations provided
by Corporate Governance Council.
1
Executive Summary
The main purpose of the assessment is to analyse the business of IOOF ltd which is engaged in
providing financial services to the clients. The assessment shows the major business risks which
can affect the profit generating capabilities of the business and what steps are undertaken by the
management of the company for reducing such risks. The assessment also shows identification of
major accounts which are likely to be affected by material misstatements and what are the key
assertions of the same. In addition to this, the assessment also evaluates whether the management
of the company complies with Principle 4 of Corporate Governance recommendations provided
by Corporate Governance Council.
AUDITING
2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Nature of the Business.................................................................................................................3
Business Risks.............................................................................................................................3
Effect of Material Misstatements and Key Assertions................................................................5
Compliance with Corporate Governance Principles....................................................................8
Audit Decision.............................................................................................................................9
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10
2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Nature of the Business.................................................................................................................3
Business Risks.............................................................................................................................3
Effect of Material Misstatements and Key Assertions................................................................5
Compliance with Corporate Governance Principles....................................................................8
Audit Decision.............................................................................................................................9
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10
AUDITING
3
Introduction
The main purpose of the assessment is to analyze the business of IOOF Ltd for which the
annual report of the business would be considered for the year 2018. The assessment would be
identifying risks which is associated with the business. The assessment would be analyzing the
financial statements with a view of identifying the accounts which are most affected by material
misstatements (Bentley, Omer and Sharp 2013). The assessment would be identifying whether
the management of the company complies with the principle 4 of ASX Corporate Governance
principles. Finally, it would be assessing whether the audit for the business should be undertaken
or not.
Discussion
Nature of the Business
The company which is considered for this assessment is IOOF ltd which is engaged in
providing financial services to the residents of Australia. The company is listed in ASX and is
considered to be a big company providing financial services and products to the clients. The
company is known to provide a range of services and products to the clients such as financial
advice, superannuation, investment management and trustee services (Ioof.com.au. 2019). The
company has effectively completed number of mergers and acquisitions which has established
the business and it is estimated that the entity has more than $ 100 billion in funds under its
administration.
Business Risks
Business risks can be described as the risks which can affect the profits earning capacity
of the business (Griffiths 2016). The business is affected by several other factors which affects
3
Introduction
The main purpose of the assessment is to analyze the business of IOOF Ltd for which the
annual report of the business would be considered for the year 2018. The assessment would be
identifying risks which is associated with the business. The assessment would be analyzing the
financial statements with a view of identifying the accounts which are most affected by material
misstatements (Bentley, Omer and Sharp 2013). The assessment would be identifying whether
the management of the company complies with the principle 4 of ASX Corporate Governance
principles. Finally, it would be assessing whether the audit for the business should be undertaken
or not.
Discussion
Nature of the Business
The company which is considered for this assessment is IOOF ltd which is engaged in
providing financial services to the residents of Australia. The company is listed in ASX and is
considered to be a big company providing financial services and products to the clients. The
company is known to provide a range of services and products to the clients such as financial
advice, superannuation, investment management and trustee services (Ioof.com.au. 2019). The
company has effectively completed number of mergers and acquisitions which has established
the business and it is estimated that the entity has more than $ 100 billion in funds under its
administration.
Business Risks
Business risks can be described as the risks which can affect the profits earning capacity
of the business (Griffiths 2016). The business is affected by several other factors which affects
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