Auditing of Coca-Cola Amatil in Australia

RUNNING HEAD: Auditing of Coca-Cola Amatil in Australia
Auditing and Assurance in Australia
Coca-Cola Amatil

Auditing of Coca-Cola Amatil in Australia 1
Executive Summary
The below mentioned paper evaluates the details about the auditing activities of the company
Coca-Cola Amatil that is listed in ASX. The ASA 701 talks about the communication with
auditors for the key audit matters in the independent auditor’s report. The report deals with the
responsibility of the auditors to circulate the key audit matters in the report made by the auditors
for the stakeholders of the company. The report should be formed with transparency and should
be true and fair as well. Apart from this, the ASA 315 is also implemented in the report that
helps in identifying and evaluating the risk of material misstatement by knowing the company
and its environment. The latter part of the report also identifies the misstatement of materials
occurred due to fraud or error in the books of accounts of the company. Other auditing standards
that are also applied in the report are ASA 200 and ASA 570. Lastly, recommendations are also
given to increase the effectiveness of the material information developed by the auditors of the
company.

Auditing of Coca-Cola Amatil in Australia 2
Content
s
Introduction......................................................................................................................................4
Introduction of Company.................................................................................................................4
Compliance of Independence Requirements by Auditor.................................................................5
Nature of non-audit services provided.............................................................................................5
Analysis of the Auditor's remuneration as compared to the previous year.....................................6
Audit Procedures for Key Audit Matters.........................................................................................7
Structure, Responsibilities and Functions of Audit Committee......................................................8
Audit Opinion expressed.................................................................................................................8
The difference in Director’s and Management’s responsibilities with Auditor’s responsibilities. .9
Treatment of Material Subsequent Events.......................................................................................9
Presence of Other Material information........................................................................................10
Follow-ups taken from Auditor.....................................................................................................11
Recommendations and Conclusion................................................................................................11
References......................................................................................................................................12

Auditing of Coca-Cola Amatil in Australia 3
Introduction
Interacting with the key audit matters helps in attaining additional information for the
stakeholders of the company. With the communication of such information the user can easily
understand diverse information about the activities of the organization. The ASA 701 refers to
the responsibility of the auditors to express key audit matters in the auditor's report. Further,
ASA 315 states that identification and assessment of the misstatement of information with
considerate of the entity and the environment. This aspect deals with the accountability of the
auditor to analyse the risks related to the information and applying internal controls of the entity.
This accounting standard also talks about the identification of the material misstatement by
understanding the company and its environment. This deals with the understanding and
accountability of the material misstatement (Kulkarni 2017).
Further ASA 570 talks about the going concern concept of the company. It is considered the duty
of the auditors to understand various legalities related to the going concern of the company and
state its implications on the report of auditors. Lastly, ASA 200 deals with the independence of
the auditors to conduct the financial audit without facing any pressure. This standard evaluates
the scope, objective and responsibilities of the auditor along with the nature of audit executed by
them. Below mentioned report evaluates the financial reports of the company Coca-Cola
Amatil(Auditing and Assurance Standards Board 2015). It analyses the various aspects of
auditing of the company and recommendations given to them for improving effectiveness. More
details about the report are discussed below:
Introduction of Company
Coca-Cola Amatil (CCA) is one of the biggest producers of non-alcoholic drinks present in the
Asia Pacific region. The company of five major Coca-Cola bottlers present in some of the
biggest nations worldwide like, Samoa, New Zealand, Fiji, Australia, Papua New Guinea and
Indonesia. The company Coca-Cola is listed on ASX and its headquartered in New South Wales,
Australia. Some of the products served by Coca-Cola Amatil are iced tea, spring water, fruit
juices, energy drinks, flavoured milk, coffee etc. The company earned revenue of AS$5.12