Auditing Theory and Practice for CSR Limited

Running head: AUDITING THEORY AND PRACTICE
Auditing Theory and Practice
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1AUDITING THEORY AND PRACTICE
Executive Summary:
This report has intended formulate the responsibilities along with roles of the auditor for
providing assurance the entire financial statements of the CSR Limited along with its control
on environment. Therefore, the annual report of 2018 is taken for differentiating audit
relating sections to cover auditing segments. In these segments contain valuable auditing
issues of the chosen company and these are tested further. This report can help a person to
gather information that can further help to judge the auditor’s quality.

2AUDITING THEORY AND PRACTICE
Table of Contents
Introduction:............................................................................................................................ 3
Compliance with the auditor’s independence requirements:..................................................3
Services related to non-audit:..................................................................................................4
Analysis regarding remuneration of auditor:...........................................................................5
Key audit matters:.................................................................................................................... 5
Audit Committee:..................................................................................................................... 8
Audit Option:............................................................................................................................8
Different responsibilities among directors, management and auditors:..................................9
Events regarding material subsequent:....................................................................................9
Effective assessment regarding material information:...........................................................10
Material information under the category of missing, under-reported, not fully explained or
disclosed:................................................................................................................................10
Some follow-up questions:.....................................................................................................11
Conclusion:.............................................................................................................................11
References:............................................................................................................................ 13

3AUDITING THEORY AND PRACTICE
Introduction:
The concept “auditing” implies a company’s object to investigate and analyse its
financial statements for receiving an accurate and fair record of transactions that are
claimed. Company stakeholders want this statement in a simple and clear format to
understand about the company’s financial activities (Viale, Gendron and Suddaby 2017).
Thus, it is essential for each auditor to develop the quality of company’s audit report, where
it can clearly represent all essential information of material aspects related to financial
statements. At present, audit committees have taken various initiatives to develop the
quality of audit report for any company (Cohen, Krishnamoorthy and Wright 2017). Hence,
this report intends to observe and analyse current audit report of any company, based on
different auditing characteristic related to financial statement. For this, the report has
selected CSR Limited, which is an Australian industrial company that chiefly produce
building products (Csr.com.au. 2018). Deloitte has conducted the auditing activities of CSR
Limited in the year 2018.
Compliance with the auditor’s independence requirements:
The 2018 annual report of CSR Limited has stated that no member of Deloitte’s
audit group had played important role for auditing the financial statement of CSR Limited in
2017 and this has happened due to a declaration based on “Section 342A of the
Corporation Act 2001”. Moreover, Deloitte did not involve any of its employees for
conducting the business operation of this company (Li, Raman, Sun and Wu 2017). Deloitte
also has collected entire requirements that are mentioned under “Section 307C of the
Corporations Act 2001” stating about following issues:
 For conducting audit operations of CSR Limited all applicable codes regarding
professional conduct are practiced