Evaluation of Auditors' Assurance Services: A Case Study of Boral Limited

Running head: AUDITING THEORY AND PRACTICE
Auditing theory and practice
Name of the University
Name of the student
Authors note

1
AUDITING THEORY AND PRACTICE
Executive summary:
The report is prepared for evaluating the effectiveness of the material information identified by
the auditors of the company listed on ASX. For the analysis, Boral limited is the company that
has been chosen and the data for the analysis have been extracted from the annual report
published by company annually. Analysis of the auditors have been done concerning wide range
of areas such as the independence requirements, non audit services, audit committee,
remuneration, key audit matters and outlining the responsibilities of auditors and director of
company. Evaluation of the auditing section presented in the annual report has assisted the user
in identifying the relevance of the audit opinion presented.

2
AUDITING THEORY AND PRACTICE
Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
1) Evaluation of the auditor’s assurance services:...........................................................................3
2) Evaluation of Compliance of auditors with independence requirements:...................................3
3) Nature of non audit services:.......................................................................................................3
4) Analysis of remuneration of auditors:.........................................................................................3
5) Evaluation of key audit matters:..................................................................................................3
6) Evaluation of audit committee:...................................................................................................4
7) Audit opinion expressed:.............................................................................................................4
8) Difference between the responsibilities of management and auditors:.......................................4
Conclusion:......................................................................................................................................4
Reference list:..................................................................................................................................4

3
AUDITING THEORY AND PRACTICE
Introduction:
The current paper addresses the evaluation of assurances services provided the auditors of
listed company on the Australia stock exchange. For this purpose, analysis of the auditor’s
section has been demonstrated in several areas such as auditor’s remuneration, audit committee,
key audit matters, non audit services and audit opinion. The company that is selected from the
list is Boral limited which is a multinational company engaged in the constriction of materials,
supplying and manufacturing of buildings. There are three divisions of organization comprising
of fast growing Boral interior linings, material business that is well positioned and high
performing business. The analysis of the auditors section has been done by evaluating the
information presented in the financial report of company that is published on the website. The
last section of report identifies whether the material information presented by the auditor in the
annual report is effective or not. Analysis of the audit committee has been done in the context of
the responsibilities, functions, meeting and composition that helps in evaluating the contribution
of such committee to the organization as a whole.
Discussion:
1) Evaluation of the auditor’s assurance services:
An objective and independence assurance is provided by the group audit and risk being a
function of internal audit. It has been ascertained from the annual report that the auditor has not
expressed any opinion in the form of concluding about the assurance thereon relating to the
financial statements. However, for the remuneration report, the opinion by the auditors has been
assured. The objective of auditor is to provide reasonable assurance about the financial report
that is free from any material misstatement due to the consequence of errors and fraud (Power &
Gendron, 2015).