Auditing Theory and Practice Assignment for AMCOR Limited

Auditing Theory
and Practice
Assignment
AMCOR
LIMITED

Table of Contents
Introduction.................................................................................................................................................3
Determination of Compliance Related to Auditor’s Independence.............................................................3
Rendering of non-audit services..................................................................................................................3
List of Key audit matters and the subsequent audit tests performed on them...........................................5
About Audit Committee...............................................................................................................................6
Opinion expressed by the auditor...............................................................................................................6
Differences between the responsibilities of the management and that of the auditor..............................7
Material subsequent events if any..............................................................................................................7
Viewpoint from a third-party perspective...................................................................................................7
Possibilities of missing or inadequate information and follow up question................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................8

Introduction
Over a period, as the companies evolved from being closely held companies to those who
securities are widely held and traded with the growth of the capital markets. This meant that
unlike earlier times the companies now needed to attract funds from people other than its
promoters which would require a level of trust to be built between the company and its
investors (Axelsen, et al., 2017). The regulatory authorities had taken a note of these demands
over a period and therefore to bring in more transparency and building the confidence of the
stakeholders, came up with regulations and compliance norms regarding enhanced reporting
standards. After its acceptance globally in many other countries, the Australian Auditing and
Assurance Standard board (hereinafter would be referred as “AUASB”) came up with the
standards in the Australian context which is in line with the global practices. One of the
principle areas that are dealt in enhanced audit reporting is the “Key audit matters”. The
company which has been selected here is AMCOR Limited which is listed on the Australian
Stock Exchange
Determination of Compliance Related to Auditor’s Independence
The word “independence” in all its grammatical variations and cognate expressions means
freedom. With reference to an auditor, the significance of independence is paramount. An
auditor being a person who is to provide opinion on the state of financial reporting and the
internal controls system of the company is expected to be have independence from the
organization of whose audit he undertakes as well as independence from any party who either
directly or indirectly has interest in the affairs of the company (Fay & Negangard, 2017). The
primary reason to have the independence is to make sure that the opinion expressed by the
auditor is not made under any sort of influence and the opinion expressed is unbiased and
objective so that the confidence of the shareholders and various other stakeholders on the
work of the auditor remains unaltered. To confirm the facts, the auditors are required to make
a declaration in the audit report stating they are independent. The auditors
PriceWaterhouseCoopers have made a declaration about it in the prescribed manner stating
that they have acted within the regulatory framework of the Corporation Act. In addition to the
above compliance, the declare that they have adhered to the ethics related to their
professional code.
Rendering of non-audit services
In addition to rendering audit assurance services for its client, the auditors PWC have also
provided some their services which fall under the category of non-audit services. The provision
of non-audit services provided by the statutory auditors are strictly governed by the
independence related requirements mentioned in the Corporations Act 2001. The audit
committee needs to vet the type of work to be performed under the umbrella of non-audit