Auditing Theory and Practice in Indonesia

Running head: AUDITING THEORY AND PRACTICE
Auditing theory and practice
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1AUDITING THEORY AND PRACTICE
Table of Contents
Background................................................................................................................................2
Product and services...................................................................................................................2
Market competition....................................................................................................................2
Regulatory environment.............................................................................................................3
Reference....................................................................................................................................5

2AUDITING THEORY AND PRACTICE
Background
Advale resource limited is the exploration company that is based in Sydney, Australia
and is expanding its business to Indonesia. The company is focussed on development and
exploration of the coal projects in Indonesia as well as in Australia. It holds 90% share in
Tapan project that is located in Padang of Indonesia. Further, the company has 100% interest
in Lake Uranium project with the licences for 3 explorations in northern part of Lake Frome
Embayment in South Australia. Apart from this it holds 40% joint venture interest in Advale
Harner Resources that is based in Indonesia. However, recently the directors of the company
concluded that the interests from Indonesian coal assets are no longer the appropriate asset
for the company to go forward. They stated that there is the likely and potential risk
associated with the ongoing litigation. However, discussion is going on for negotiations to
divest the asset for aggregate positive return to company. The company’s strategic objective
is to focus on its activities related to mineral exploration particularly for the uranium
exploration in Lake Project in South Australia (Adavaleresources.com 2018).
Product and services
The company continued with the focus on the development and exploration of coal
and various other mineral projects in Indonesia and is interested about the South Australia’s
Lake Surprise Uranium Project. The company has following projects –
 Lake Surprise – South Australia – this project includes Jubilee and Mookwarinna
prospects locations and lie in structural, shallow downwarp that is known as Clayton
basin.
 Advale Harner resources – Indonesia – resources at this project are allocated for
maintaining the PPA assets with application of new license and exploration of new
opportunities beyond coal. The management reviewed various opportunities in
various other mineral sectors like tin where it can offer attractive return to the
shareholders on their investment (Goldman and Johnson 2017).
 Tapan – Sumatra – Indonesia – this project is located in 120 km south of capital of
Padong