Understanding Auditor's Public Interest Responsibilities and Audit Quality: A Stakeholder Analysis

Running head: AUDITOR’S PUBLIC INTEREST RESPONSIBILITIES AND AUDIT QUALITY
Auditor’s Public Interest Responsibilities and Audit Quality
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1AUDITOR’S PUBLIC INTEREST RESPONSIBILITIES AND AUDIT QUALITY
Executive Summary:
The given discourse of the study has provided stakeholder evaluation of an ASX listed entity
pertaining to which Orica Limited has been taken into account for the study. The revelations
include conceptualisation of the auditing characteristics such as the scandal of Enron,
whistleblowing and independence of the auditors. The report has also focused on warning
statement provided by former chairman of ASIC Greg Medcraft. It can be stated that Orica
Limited seem to be maintaining numerous groups of stakeholders for which there is significant
material misstatement in the financial report. This is considered with having a negative impact
on the decision-making process of the company. In addition to this, whistleblowing and
independence of the auditor independence of the auditor are inferred as the two main
constraints of fair practice across global businesses. In addition to this, the failure of Enron’s has
been considered as a learning ground for the auditors so that they adhere to the obligations of
assurance. This is further cited with the importance of practising safeguard policies and
adhering to the appropriate audit principles and ethical norms defined under APES 110.

2AUDITOR’S PUBLIC INTEREST RESPONSIBILITIES AND AUDIT QUALITY
Table of Contents
1. Introduction:.............................................................................................................................. 3
2. Stakeholder analysis of Orica Limited:.......................................................................................3
3. Auditors concept of independence and whistleblowing:...........................................................5
4. Instructions for the auditors from Enron scandal:.....................................................................7
5. Steps pertaining to audit quality in order to address the cautions provided by Greg Medcraft:
..................................................................................................................................................... 11
6. Conclusion:.............................................................................................................................. 14
References................................................................................................................................... 15
List of Appendices........................................................................................................................18
Appendix 1............................................................................................................................... 18
Appendix 2............................................................................................................................... 18
Appendix 3............................................................................................................................... 19
Appendix 4............................................................................................................................... 19

3AUDITOR’S PUBLIC INTEREST RESPONSIBILITIES AND AUDIT QUALITY
1. Introduction:
In general, reckless audit procedures states that there may be not assertion made as per
the assurance of the significant stakeholders are susceptible to the risk considerations which
are similar to the auditors. The present standings of the report will be able to include a relevant
analysis of the stakeholders listed in ASX pertaining to which Orica Limited is taken into
consideration. The company has been depicted to manufacture and selling of products such as
commercial explosives and blasting systems explosives to the mining firms functioning in
Australia. As the stakeholder analysis is completed, the effect of the material misstatements
can be considered with identified group which would be analysed in case they are not disclosed
in an appropriate manner. Secondly, it will aim at the main concepts which are associated to
whistleblowing and auditor’s independence for the auditors and the link may be observed
among the requirement of public interest as per APES 110. The main focus on the next section
will highlight on the lessons associated to the auditors which relate to the scandal of Enron and
specifically Arthur Andersen’s behaviour. Lastly, the report would also include the relevant
discussions on the audit quality and steps taken by the auditor in adopting the statement put
forward by Greg Medcraft (Chernov and Sornette 2016).
2. Stakeholder analysis of Orica Limited:
Orica Limited is seen to observe the opinion of the stakeholder groups in case there is
any instance of material misstatement by the organizations. The total number of ways by which
an organization may be affected are stated as follows:
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