Evaluation of Auditing Services Provided by Azure Minerals Limited

Running head: AUDITING THEORY AND PRACTICE
Auditing theory and practice
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AUDITING THEORY AND PRACTICE
Executive summary:
The current paper illustrates the evaluation of the assurance services provided by the auditors of
one of the companies listed on the Australian stock exchange. For presentation of analysis of the
auditing services, the report incorporates discussion on the analysis of independent auditors
report, declaration of independent auditors, and remuneration of auditors, non audit services, and
evaluation of audit committee in terms of its composition, functions and responsibilities. In
addition to this, the key audit matters have been evaluated along with identifying the associated
procedures of conducting the audit. For the purpose of analysis, the financial report of Azure
minerals has been adequately analyzed in the concerned area of interest.

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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

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AUDITING THEORY AND PRACTICE
Introduction:
The report is prepared for analyzing the auditors section as reported in the annual report
of one of the companies listed on Australian stock exchange. Evaluation of the assurance
services of auditors have been done in the context of selected company that is Azure minerals
limited. Azure minerals are one of the leading mineral exploration company of Australia having
a proven mine building credentials and proven mineral discovery and operating at the
international level. The company is progressing towards the advanced stage of Oposura project
which is located in one of the premier mining districts of Mexico. The information regarding the
assurance services provided by the auditors have been extracted from the annual or financial
report of the company. Some of the areas relating to the section of auditors of Azure minerals
that have been evaluated include compliance of auditors with the independence requirements,
analysis of key audit matters, analysis of auditor’s remuneration, auditor’s opinion and assessing
the effectiveness of the material information ascertained by the auditor (Köhler et al. 2016). For
the purpose of analysis, information has been gained from the annual report of the company for
current as well as previous year.
Discussion:
1) Evaluation of the auditor’s assurance services:
The responsibility of auditors of listed company is to obtain the reasonable assurance of
the fact that the financial statement does not contain any material misstatement. Such assurance
provided by the auditor is a high level of assurance that the conduction of audit have been done
according to the requirement of Australian auditing standards and they would be able to detect
existence of material misstatements (Alzeban and Sawan 2015). However, such reasonable
assurance does not act as guarantee to ensure the users of financial statements. The assurance