Auditing and Assurance

Running head: AUDIT STRATEGY
Auditing and Assurance
Name of the Student:
Name of the University:
Author’s Note:

2AUDITING STRATEGY
Executive Summary
The aim of the assignment is to conduct an audit programme on Target Energy Ltd by
analysing the financials of the company. The Audit Program covers the major aspect of the
financials of the company and general information about the company covering the
operational information and various other business and macro-economic environment factor
analysis.

3AUDITING STRATEGY
Table of Contents
1.0 Introduction.....................................................................................................................4
2.0 Part A: The Client................................................................................................................4
2.1 Information about the client.............................................................................................4
2.2 Industry Regulator and other external factor...................................................................4
2.3 Nature of Operations........................................................................................................5
2.4 Accounting Policy............................................................................................................6
2.5 Related Parties and Transactions with related parties......................................................7
Part B: Analysis of Clients and Impact on Future Audit Works................................................9
2.6 Accounting Policy Changes and their Impact..................................................................9
2.7 Preliminary Analytical Procedures................................................................................10
2.8 Financial Performance review and measurement..........................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14
Appendix..................................................................................................................................16

4AUDITING STRATEGY
1.0 Introduction
Auditing plays an important prospect for analysing the financial statements of the
company. The financial statement and the Auditing of the Target Energy Ltd was done
thereby to assess the overall financial and operations of the company.
2.0 Part A: The Client
2.1 Information about the client
Name: Target Energy Ltd
Address: SE 5 6 Richardson Street Perth WAS 6005
Year of Establishment: 2006
Field of Operations: Development and Exploration of gas and oil properties in United
States.
Period of Financial Report under consideration: 2017
Type of Financial Report: Consolidated Financial Statement
2.2 Industry Regulator and other external factor
 Economic Condition: The economic condition of the Australian Energy Industry has
been growing with the production of coal (Targetenergy.com.au. 2017).
 Law and Regulation applicable: Australian Accounting Standards, Corporation Act
2001 and the National Gas Law 2008.
 Level of Competition: High
 Name of Main Competitors: The main competitors operating in the industry are 88
Energy Ltd, Red Emperor Resources, Oil Basins, Mossman Oil & Gas Ltd and ROC
Oil Company Limited are some of the main competitors of Target Energy Ltd.
 Level of Government’s Support: The Australian Government for supporting the
Energy Industry has made several policies like Renewable Energy Target (RET) AND
State Based Feed-in-Tariff (FIT) schemes (Energy.gov.au. 2019).
 Level of Demand for various goods and services: The demand for the goods and
services of the energy has been rising for the overall energy industry in Australia after
the demand for oil and gas increased on a global basis. Australia Energy Industry has
been the major supplier of key energy components like Oil, Coal and Gas.