Audit and Assurance Report of BHP Billiton Limited | Desklib
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This report is an audit and assurance report of BHP Billiton Limited, an Australian public listed company operating in mining, petroleum, and metals. The report covers the roles and responsibilities of auditors, key audit matters, non-audit services provided by auditors, remuneration of auditors, and more. The report also includes the structure and composition of the audit and risk management committee, functions of auditors, and the opinion of auditors regarding the financial statements.
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Report: 1
Executive Summary
The BHP Billiton limited is a mining company who reports its annual report to the auditors to
check whether they have been performing as per the laid down GAAPs and accounting
policies. ASA 701 communicates the audit matters that was made mandatory to report after
2016. There are many roles and responsibilities on the part of the auditor that helps the
organisation to win confidence of the shareholders.
Executive Summary
The BHP Billiton limited is a mining company who reports its annual report to the auditors to
check whether they have been performing as per the laid down GAAPs and accounting
policies. ASA 701 communicates the audit matters that was made mandatory to report after
2016. There are many roles and responsibilities on the part of the auditor that helps the
organisation to win confidence of the shareholders.
Report: 2
Contents
Introduction...........................................................................................................................................4
Introduction of the company..................................................................................................................4
Auditor’s Independence Declaration.....................................................................................................4
Independent auditor’s report..................................................................................................................5
Non-audit services provided by auditor.................................................................................................5
A comparative analysis of total remuneration of auditors as compared to the previous year.................5
Audit Procedures Performed For Key Audit Matters.............................................................................6
Structure of Audit and risk management committee..............................................................................7
Functions of Auditor..............................................................................................................................8
Roles and Responsibilities of the Audit Committee..............................................................................8
Opinion of Auditor regarding the financial statements..........................................................................9
Material subsequent events by the BHP Billiton limited.......................................................................9
The Directors and Management’s responsibilities differ from the Auditor’s responsibilities in relation
to the financial report...........................................................................................................................10
Follow-up questions would you ask the Auditor at the company’s Annual General Meeting..............10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12
Appendix.............................................................................................................................................15
Contents
Introduction...........................................................................................................................................4
Introduction of the company..................................................................................................................4
Auditor’s Independence Declaration.....................................................................................................4
Independent auditor’s report..................................................................................................................5
Non-audit services provided by auditor.................................................................................................5
A comparative analysis of total remuneration of auditors as compared to the previous year.................5
Audit Procedures Performed For Key Audit Matters.............................................................................6
Structure of Audit and risk management committee..............................................................................7
Functions of Auditor..............................................................................................................................8
Roles and Responsibilities of the Audit Committee..............................................................................8
Opinion of Auditor regarding the financial statements..........................................................................9
Material subsequent events by the BHP Billiton limited.......................................................................9
The Directors and Management’s responsibilities differ from the Auditor’s responsibilities in relation
to the financial report...........................................................................................................................10
Follow-up questions would you ask the Auditor at the company’s Annual General Meeting..............10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12
Appendix.............................................................................................................................................15
Report: 3
Introduction
This report brings out the audit compliance of a company named BHP Billiton limited.
Execution of audit procedure has become necessary in this fraudulent business world. To
overcome the problem and issues related to audit procedures, are reported in key audit
matters. Any variation in valuation of assets calls for report in key audit matter. The report
proposes other assurance, non-assurance, audit, and non-audit services that they receive from
external auditors and pay remuneration for the same. The auditor advices the company`s
management to collaborate, acquire or divest the capital which further is reported in Matter
subsequent events. Every company issues an auditor independence report that clearly lays
down that there are no contraventions during the audit procedure (Roy and Saha, 2018).
Introduction of the company
BHP Billiton limited is an Australian public listed company operating in mining, petroleum,
and metals headquartered in Victoria Australia. The company was created in 2001 by
merging two companies named Australian Broken Hill proprietary company limited and
Anglo-Dutch Billiton limited. Moreover, in near 2007, the company decided to seek its
purchase rivalry-mining group Rio Tinto Group in terms of all the shares of the rivalry group
(BHP Billiton limited, 2016).
Auditor’s Independence Declaration
The auditors admit that the company lead Auditor`s independence declaration under the
Australian Corporation Act, 2001 in its section 307C. Auditors declare that they had best of
their knowledge and experience when they continued the procedure of audit of BHP Billiton
ltd. In addition to this, they declare that there are no contraventions of the independence
report of auditor as a need to be regulated according to Australian Corporations Act 2001.
Introduction
This report brings out the audit compliance of a company named BHP Billiton limited.
Execution of audit procedure has become necessary in this fraudulent business world. To
overcome the problem and issues related to audit procedures, are reported in key audit
matters. Any variation in valuation of assets calls for report in key audit matter. The report
proposes other assurance, non-assurance, audit, and non-audit services that they receive from
external auditors and pay remuneration for the same. The auditor advices the company`s
management to collaborate, acquire or divest the capital which further is reported in Matter
subsequent events. Every company issues an auditor independence report that clearly lays
down that there are no contraventions during the audit procedure (Roy and Saha, 2018).
Introduction of the company
BHP Billiton limited is an Australian public listed company operating in mining, petroleum,
and metals headquartered in Victoria Australia. The company was created in 2001 by
merging two companies named Australian Broken Hill proprietary company limited and
Anglo-Dutch Billiton limited. Moreover, in near 2007, the company decided to seek its
purchase rivalry-mining group Rio Tinto Group in terms of all the shares of the rivalry group
(BHP Billiton limited, 2016).
Auditor’s Independence Declaration
The auditors admit that the company lead Auditor`s independence declaration under the
Australian Corporation Act, 2001 in its section 307C. Auditors declare that they had best of
their knowledge and experience when they continued the procedure of audit of BHP Billiton
ltd. In addition to this, they declare that there are no contraventions of the independence
report of auditor as a need to be regulated according to Australian Corporations Act 2001.
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Report: 4
Moreover, there are no such contraventions of any applicable code of conduct related to audit
professionally (Srivenkataramana, 2018).
Independent auditor’s report
Although, some external auditors do provide various non-audit services however, it should be
ensured that independence and objectivity of external auditor remain protected by restricting
some provisions of non-audit services. The risk and audit committee has opted a policy that is
entitled to “provisions of audit and non-audit services by external auditor” that covers all the
procedures and pre-approval polices. These provisions helps to maintain the independence of
external auditor (Srivenkataramana, 2018).
Non-audit services provided by auditor
The audit services are pre-approved and includes statutory audit of all the entities of BHP
Billiton ltd. The Risk and audit committee undertakes to analyse the performance of audit
service or review as logical extension of audit services. Non-audit services are outside the
scope of external statutory auditor. However, the external auditors can best accomplish these
assurance and compliance activities. Any proposal of non-audit services such as when
external auditor actions relate to internal control and helping the company to implement the
regulatory requirements that includes the application of Exchange Act. Other services such as
participating in the actions that are generally undertaken by management. Moreover, external
auditor also helps to decide the remuneration strategy by structuring the ‘success fee’.
Auditors also act as an advocacy role in the company (Li et al., 2015).
A comparative analysis of total remuneration of auditors as compared to the previous year
Review of
Annual reports
$US (2016) $US (2017) difference % change
Base annual 160000 160,000 null null
Moreover, there are no such contraventions of any applicable code of conduct related to audit
professionally (Srivenkataramana, 2018).
Independent auditor’s report
Although, some external auditors do provide various non-audit services however, it should be
ensured that independence and objectivity of external auditor remain protected by restricting
some provisions of non-audit services. The risk and audit committee has opted a policy that is
entitled to “provisions of audit and non-audit services by external auditor” that covers all the
procedures and pre-approval polices. These provisions helps to maintain the independence of
external auditor (Srivenkataramana, 2018).
Non-audit services provided by auditor
The audit services are pre-approved and includes statutory audit of all the entities of BHP
Billiton ltd. The Risk and audit committee undertakes to analyse the performance of audit
service or review as logical extension of audit services. Non-audit services are outside the
scope of external statutory auditor. However, the external auditors can best accomplish these
assurance and compliance activities. Any proposal of non-audit services such as when
external auditor actions relate to internal control and helping the company to implement the
regulatory requirements that includes the application of Exchange Act. Other services such as
participating in the actions that are generally undertaken by management. Moreover, external
auditor also helps to decide the remuneration strategy by structuring the ‘success fee’.
Auditors also act as an advocacy role in the company (Li et al., 2015).
A comparative analysis of total remuneration of auditors as compared to the previous year
Review of
Annual reports
$US (2016) $US (2017) difference % change
Base annual 160000 160,000 null null
Report: 5
Risk and audit
fee
92500 92500 null null
remuneration 72500 52500 20000 27%
Sustainability 72500 null null
Travelling
allowances
22000 null null
Total
remuneration
for all the
services
419500 399500 20000 0.4%
(BHP billiton ltd, 2016 and 2017)
The auditor`s remuneration has not shown significant change in these two subsequent years.
The remuneration has increased from US $ 419500 m in 2016 to US $ 399500 m in 2017.
The increase is not even very notifying, the change is up to 0.4%. Moreover, the company
paid nearly US $ 11.6 million from audit fees, US $ 4 million from audit related fees and US
$ 7.1 million from non-audit services in 2015. Whereas, the company paid of $ US 8.1
million as audit fees, $ US 2.6 million of audit-related fees and £1.9m as non-audit fees. As
compared to the differences in the payment made to auditors in 2016 and 2017, the change is
not much notifying. However, during 2015 and 2016, the company has strived to reduce its
non-audit service expenses from $ US 7.1 million in 2015 to $ US 1.9 million in 2016
(Accountancy Daily, 2018).
Audit Procedures Performed For Key Audit Matters
Key audit matters plays a significant role in executing matters in the audit of financial
statements for the recent year. Key audit matter includes assessment and evaluation of risk of
material misstatement, the overall audit strategy, directing the endeavour towards engaging
Risk and audit
fee
92500 92500 null null
remuneration 72500 52500 20000 27%
Sustainability 72500 null null
Travelling
allowances
22000 null null
Total
remuneration
for all the
services
419500 399500 20000 0.4%
(BHP billiton ltd, 2016 and 2017)
The auditor`s remuneration has not shown significant change in these two subsequent years.
The remuneration has increased from US $ 419500 m in 2016 to US $ 399500 m in 2017.
The increase is not even very notifying, the change is up to 0.4%. Moreover, the company
paid nearly US $ 11.6 million from audit fees, US $ 4 million from audit related fees and US
$ 7.1 million from non-audit services in 2015. Whereas, the company paid of $ US 8.1
million as audit fees, $ US 2.6 million of audit-related fees and £1.9m as non-audit fees. As
compared to the differences in the payment made to auditors in 2016 and 2017, the change is
not much notifying. However, during 2015 and 2016, the company has strived to reduce its
non-audit service expenses from $ US 7.1 million in 2015 to $ US 1.9 million in 2016
(Accountancy Daily, 2018).
Audit Procedures Performed For Key Audit Matters
Key audit matters plays a significant role in executing matters in the audit of financial
statements for the recent year. Key audit matter includes assessment and evaluation of risk of
material misstatement, the overall audit strategy, directing the endeavour towards engaging
Report: 6
the team, and allocation of proper resources in the audit procedure. Various audit matters
have greater impact on the audit procedures. The key audit matter includes the carrying value
of portfolio assets in the books of accounts that has affected by continuous instability of
commodity rates. Asset valuation were addressed differently in the audit such as Property and
plant: US$80.5 billion in 2016 was reported as US$84 billion. The area of judgement is
related to group assessment of future cash flows from cash generated from each unit. Asset
valuation is a key audit matter.
The procedure in evaluating the key audit matters involved in testing the key control over the
valuation of property, equipment, and plant. The audit matter is not only limited to tangible
assets rather it includes intangible assets that undertakes asset impairment. It compare and
evaluate the operating and upcoming capital expenses to the latest plans and budgets. The
procedure involves working with the asset valuation specialist to compare the key
assumptions for instance- discount rates, nation specific risks, commodity prices, and
commodity prices. In 2017, the audit group reported that according to US financial reporting
requirements as per the US securities exchange Act, 1834, it is being seen that material
weakness due to control and process which is used to determine the impairment of particular
onshore US assets in the financial year 2016.
Structure and composition of Audit and risk management committee
The company reappointed KPMG as an auditor to the company named BHP Billiton ltd. The
company proposed to hand over the audit to KPMG in the annual general meetings as per the
section 489 of the UK companies Act, 2006. The audit committee has three to four members
who has a strong finance and accounting background. Mr Lindsay Maxsted was the director
of the company until 2011. He is a corporate recovery specialist who manages the insolvency
and capital restructuring of the company. Another expert named Wayne Murdy was another
director of BHP Billiton limited since 2009. He has a strong background knowledge of
the team, and allocation of proper resources in the audit procedure. Various audit matters
have greater impact on the audit procedures. The key audit matter includes the carrying value
of portfolio assets in the books of accounts that has affected by continuous instability of
commodity rates. Asset valuation were addressed differently in the audit such as Property and
plant: US$80.5 billion in 2016 was reported as US$84 billion. The area of judgement is
related to group assessment of future cash flows from cash generated from each unit. Asset
valuation is a key audit matter.
The procedure in evaluating the key audit matters involved in testing the key control over the
valuation of property, equipment, and plant. The audit matter is not only limited to tangible
assets rather it includes intangible assets that undertakes asset impairment. It compare and
evaluate the operating and upcoming capital expenses to the latest plans and budgets. The
procedure involves working with the asset valuation specialist to compare the key
assumptions for instance- discount rates, nation specific risks, commodity prices, and
commodity prices. In 2017, the audit group reported that according to US financial reporting
requirements as per the US securities exchange Act, 1834, it is being seen that material
weakness due to control and process which is used to determine the impairment of particular
onshore US assets in the financial year 2016.
Structure and composition of Audit and risk management committee
The company reappointed KPMG as an auditor to the company named BHP Billiton ltd. The
company proposed to hand over the audit to KPMG in the annual general meetings as per the
section 489 of the UK companies Act, 2006. The audit committee has three to four members
who has a strong finance and accounting background. Mr Lindsay Maxsted was the director
of the company until 2011. He is a corporate recovery specialist who manages the insolvency
and capital restructuring of the company. Another expert named Wayne Murdy was another
director of BHP Billiton limited since 2009. He has a strong background knowledge of
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Report: 7
finance and accounting. Shriti Vadera has a wide range of experience in economics, finance,
and extensive experience of international institutions. The chairperson of the disclosure group
is named as Ms Taylor, who is a fellow of governance institute (Paracini, Malsch, and
Tremblay, 2014).
Functions of Auditor
A group of internal auditors carry out functions related to RAA (Group Risk Assessment and
Assurance). The group provides assurance whether control, risk management and governance
procedures are accomplished timely and properly. The risk and audit committee review the
activities in the light of (RAA) Risk Assessment and Assurance. The staff of internal auditing
team ensures that the financial statements are prepared in the light of future key risks. The
auditors function as a monitor and reviewer to check the overall effectiveness of audit
services (BHP billiton ltd, 2016).
Both internal and external auditors are committed to confirm that financial reporting can be
accomplished by managing the risk and mitigating it by meeting compliance requirements.
The function of auditor`s committee is to put a check on the material aspects of the company
and also implementing them. An auditor keep checking that whether financial statements
comply with the IFRS Accounting standards or not (Bowlin, Hobson and Piercey, 2015).
Roles and Responsibilities of the Audit Committee
The auditors play the role of watchdog that assist the shareholders to monitor the credibility
of the presentation of the financial statements. To enhance the credibility, the external auditor
expresses the actual opinion regardless of any impartiality that reduces the conflict of the
interest (Auditing and Assurance Standards Board, 2015b).
The external auditor evaluates the company on certain principles such as going Concern
Company by expressing their opinion based on audit report to the shareholders. The role of
finance and accounting. Shriti Vadera has a wide range of experience in economics, finance,
and extensive experience of international institutions. The chairperson of the disclosure group
is named as Ms Taylor, who is a fellow of governance institute (Paracini, Malsch, and
Tremblay, 2014).
Functions of Auditor
A group of internal auditors carry out functions related to RAA (Group Risk Assessment and
Assurance). The group provides assurance whether control, risk management and governance
procedures are accomplished timely and properly. The risk and audit committee review the
activities in the light of (RAA) Risk Assessment and Assurance. The staff of internal auditing
team ensures that the financial statements are prepared in the light of future key risks. The
auditors function as a monitor and reviewer to check the overall effectiveness of audit
services (BHP billiton ltd, 2016).
Both internal and external auditors are committed to confirm that financial reporting can be
accomplished by managing the risk and mitigating it by meeting compliance requirements.
The function of auditor`s committee is to put a check on the material aspects of the company
and also implementing them. An auditor keep checking that whether financial statements
comply with the IFRS Accounting standards or not (Bowlin, Hobson and Piercey, 2015).
Roles and Responsibilities of the Audit Committee
The auditors play the role of watchdog that assist the shareholders to monitor the credibility
of the presentation of the financial statements. To enhance the credibility, the external auditor
expresses the actual opinion regardless of any impartiality that reduces the conflict of the
interest (Auditing and Assurance Standards Board, 2015b).
The external auditor evaluates the company on certain principles such as going Concern
Company by expressing their opinion based on audit report to the shareholders. The role of
Report: 8
the auditor who is in independent profession is to assess every method and implication of
GAAPs in the organisation.
Opinion of Auditor regarding the financial statements
Auditors have declared that the company has reflected its true financial statements of the
whole group as at 30 June 2017. KPMG has recommended that the company has formulated
the consolidated financial statements as per the IFRS (International Financial reporting
standards) which are adopted by European Union (EU). BHP Billiton Plc has prepared its
financial statements according to UK accounting standards that includes FRS 101 disclosure
Framework. It is being reported by the auditors that the company has submitted its financial
statements as required by UK companies Act, 2006 as given in the Article 4 of the IAS
regulation. Auditors have not found any material instances and misstatements in the strategic
annual report. The information elaborated in annual reports is consistent in the financial
reports and auditors accomplish that reports are prepared according to the UK Company Act,
2006 (Auditing and Assurance Standards Board, 2015c).
Material subsequent events by the BHP Billiton limited
There was no such activity of acquisition during 2015, 2016, and 2017. Moreover, the
company has divested certain subsidiaries, joint operations, operations and equity accounted
investments in the year. The company has disposed BHP Navajo Coal Company and Indomet
coal in 2017 and Pakistan gas business and San Juan Mine in 2016.
In august 2017, board of directors have approved an investment of around US$2.5billion for
developing the Spence growth option. This also includes the construction of copper
concentrator that will help to increase the longevity of the mine by more than 50 yrs.
Again, in august 2017, the board of directors agreed to approve a repurchase plan of multi-
currency bond with a cumulative capital of US$2.5 billion. Moreover, the company planned
the auditor who is in independent profession is to assess every method and implication of
GAAPs in the organisation.
Opinion of Auditor regarding the financial statements
Auditors have declared that the company has reflected its true financial statements of the
whole group as at 30 June 2017. KPMG has recommended that the company has formulated
the consolidated financial statements as per the IFRS (International Financial reporting
standards) which are adopted by European Union (EU). BHP Billiton Plc has prepared its
financial statements according to UK accounting standards that includes FRS 101 disclosure
Framework. It is being reported by the auditors that the company has submitted its financial
statements as required by UK companies Act, 2006 as given in the Article 4 of the IAS
regulation. Auditors have not found any material instances and misstatements in the strategic
annual report. The information elaborated in annual reports is consistent in the financial
reports and auditors accomplish that reports are prepared according to the UK Company Act,
2006 (Auditing and Assurance Standards Board, 2015c).
Material subsequent events by the BHP Billiton limited
There was no such activity of acquisition during 2015, 2016, and 2017. Moreover, the
company has divested certain subsidiaries, joint operations, operations and equity accounted
investments in the year. The company has disposed BHP Navajo Coal Company and Indomet
coal in 2017 and Pakistan gas business and San Juan Mine in 2016.
In august 2017, board of directors have approved an investment of around US$2.5billion for
developing the Spence growth option. This also includes the construction of copper
concentrator that will help to increase the longevity of the mine by more than 50 yrs.
Again, in august 2017, the board of directors agreed to approve a repurchase plan of multi-
currency bond with a cumulative capital of US$2.5 billion. Moreover, the company planned
Report: 9
to increase the global total capital to US$2.9billion. These subsequent events may not have
very strong impact on the financial statements for the year 30 June 2017.
The Directors and Management’s responsibilities differ from the Auditor’s responsibilities in
relation to the financial report
The auditors play an important role in planning and executing the audit functions to get a
reasonable assurance of whether financial statements are fair and unbiased or has a bunch of
errors and fraud. The auditor gives the fair representation of financial accounts with a
confirmation of following GAAPs (Generally Accepted accounting principles). The
independent auditors also helps in advising the company regarding the impairment and
liquidation of assets. The auditor is confined to expression of opinions and reviewing the
accounts (Auditing and Assurance Standards Board, 2013).
Preparation of financial statements is the major duty of the management and directors of the
company. It is an implicit part of management responsibility. Both the parties’ board of
directors and auditors can together accomplish the successful execution of financial
statements. Board of directors gain confidence and trust once the financial accounts have
gone through auditors check-up. Board of directors believe on auditors’ performance to gain
the trust of shareholders and investors. The public believes on when they think of investing in
any organisation on the auditor (Auditing and Assurance Standards Board, 2015).
Follow-up questions would you ask the Auditor at the company’s Annual General Meeting
The board strongly believes that there is suitable evenness between non-executive and
executive directors that would support the company to retain shareholders interest and will
govern BHP effectively. The management is responsible for activities that are directly related
to external audit group and consult them during the process (Clikeman, 2018). The auditor
enter into the process and participate in firm-led interviews with each subsidiary firm of the
to increase the global total capital to US$2.9billion. These subsequent events may not have
very strong impact on the financial statements for the year 30 June 2017.
The Directors and Management’s responsibilities differ from the Auditor’s responsibilities in
relation to the financial report
The auditors play an important role in planning and executing the audit functions to get a
reasonable assurance of whether financial statements are fair and unbiased or has a bunch of
errors and fraud. The auditor gives the fair representation of financial accounts with a
confirmation of following GAAPs (Generally Accepted accounting principles). The
independent auditors also helps in advising the company regarding the impairment and
liquidation of assets. The auditor is confined to expression of opinions and reviewing the
accounts (Auditing and Assurance Standards Board, 2013).
Preparation of financial statements is the major duty of the management and directors of the
company. It is an implicit part of management responsibility. Both the parties’ board of
directors and auditors can together accomplish the successful execution of financial
statements. Board of directors gain confidence and trust once the financial accounts have
gone through auditors check-up. Board of directors believe on auditors’ performance to gain
the trust of shareholders and investors. The public believes on when they think of investing in
any organisation on the auditor (Auditing and Assurance Standards Board, 2015).
Follow-up questions would you ask the Auditor at the company’s Annual General Meeting
The board strongly believes that there is suitable evenness between non-executive and
executive directors that would support the company to retain shareholders interest and will
govern BHP effectively. The management is responsible for activities that are directly related
to external audit group and consult them during the process (Clikeman, 2018). The auditor
enter into the process and participate in firm-led interviews with each subsidiary firm of the
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Report: 10
company and provide them a opportunity to ask questions. By filling, a feedback form and
evaluate certain principles and aspects of the organisations with written tender submission.
The area of evaluation generally covers three important key areas such as terms of
engagement in which the quality and engagement are paramount, cultural fit and relationship,
and quality and capability. Based on strong evaluation criteria, BHP should issue request for
proposal (RFP) to three tiered audit firms. BHP`s auditor does not participate in EU
regulations and competition which requires marketing authority rules to accomplish new
external audit (Deumes et al., 2012).
Conclusion
After going through the auditors role in managing the company`s accounts is not an easy task,
there are various IFRS standards, policies, GAAPs (Generally accepted accounting
principles) which has to be accomplished by the company when entering into an going
concern organisation. The auditors recognised are KPMG. Both internal and external auditors
are associated with the KPMG team. While going through the comparative analysis of
remuneration to the auditors for both its audit and non-services, it is being reported that the
company remuneration system has not much changed as it does in the last financial year
2015-2016.
company and provide them a opportunity to ask questions. By filling, a feedback form and
evaluate certain principles and aspects of the organisations with written tender submission.
The area of evaluation generally covers three important key areas such as terms of
engagement in which the quality and engagement are paramount, cultural fit and relationship,
and quality and capability. Based on strong evaluation criteria, BHP should issue request for
proposal (RFP) to three tiered audit firms. BHP`s auditor does not participate in EU
regulations and competition which requires marketing authority rules to accomplish new
external audit (Deumes et al., 2012).
Conclusion
After going through the auditors role in managing the company`s accounts is not an easy task,
there are various IFRS standards, policies, GAAPs (Generally accepted accounting
principles) which has to be accomplished by the company when entering into an going
concern organisation. The auditors recognised are KPMG. Both internal and external auditors
are associated with the KPMG team. While going through the comparative analysis of
remuneration to the auditors for both its audit and non-services, it is being reported that the
company remuneration system has not much changed as it does in the last financial year
2015-2016.
Report: 11
References
Accountancy Daily, (2018) EY extracts BHP Billiton audit from KPMG. [online] Available
on: https://www.accountancydaily.co/ey-extracts-bhp-billiton-audit-kpmg [Accessed on
29/09/18]
Auditing and Assurance Standards Board (2013) Auditing Standard ASA 315 Identifying and
Assessing the Risks of Material Misstatement through Understanding the Entity and Its
Environment [online] Available from:
https://www.auasb.gov.au/admin/file/content102/c3/Nov13_Compiled_Auditing_Standard_A
SA_315.pdf [Accessed 14/09/2018].
Auditing and Assurance Standards Board (2015a) Auditing Standard ASA 200 Overall
Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with
Australian Auditing Standards [online] Available from:
https://www.auasb.gov.au/admin/file/content102/c3/ASA_200_Compiled_2015.pdf
[Accessed 14/09/18].
Auditing and Assurance Standards Board (2015b) Auditing Standard ASA 701
Communicating Key Audit Matters in the Independent Auditor’s Report [online] Available
from: https://www.auasb.gov.au/admin/file/content102/c3/ASA_701_2015.pdf [Accessed
14/09/18].
Auditing and Assurance Standards Board (2015c) Auditing Standard ASA 570 Going
Concern [online] Available from:
https://www.auasb.gov.au/admin/file/content102/c3/ASA_570_2015.pdf [Accessed
14/09/2018].
References
Accountancy Daily, (2018) EY extracts BHP Billiton audit from KPMG. [online] Available
on: https://www.accountancydaily.co/ey-extracts-bhp-billiton-audit-kpmg [Accessed on
29/09/18]
Auditing and Assurance Standards Board (2013) Auditing Standard ASA 315 Identifying and
Assessing the Risks of Material Misstatement through Understanding the Entity and Its
Environment [online] Available from:
https://www.auasb.gov.au/admin/file/content102/c3/Nov13_Compiled_Auditing_Standard_A
SA_315.pdf [Accessed 14/09/2018].
Auditing and Assurance Standards Board (2015a) Auditing Standard ASA 200 Overall
Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with
Australian Auditing Standards [online] Available from:
https://www.auasb.gov.au/admin/file/content102/c3/ASA_200_Compiled_2015.pdf
[Accessed 14/09/18].
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from: https://www.auasb.gov.au/admin/file/content102/c3/ASA_701_2015.pdf [Accessed
14/09/18].
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https://www.auasb.gov.au/admin/file/content102/c3/ASA_570_2015.pdf [Accessed
14/09/2018].
Report: 12
BHP billiton ltd, (2016) Annual report [online] Available on:
https://www.bhp.com/-/media/bhp/documents/investors/annual-reports/2016/
bhpbillitonannualreport2016.pdf?la=en [Accessed on 27/09/18]
BHP billiton ltd, (2017) Annual report Available on:
https://www.bhp.com/-/media/documents/investors/annual-reports/2017/
bhpannualreport2017.pdf [Accessed on 29/09/18]
Bowlin, K.O., Hobson, J. L. and Piercey, M. D., (2015) the effects of auditor rotation,
professional skepticism, and interactions with managers on audit quality. The Accounting
Review, 90(4), pp.1363-1393.
Clikeman, P. M. (2018) Managers' and Auditors' Responsibilities for Evaluating Going
Concern. [online] Available on: https://onlinelibrary.wiley.com/doi/full/10.1002/jcaf.22319
[Accessed on 27/09/18]
Deumes, R., Schelleman, C., Vander Bauwhede, H., and Vanstraelen, A. (2012) Audit firm
governance: Do transparency reports reveal audit quality? Auditing a Journal of Practice &
Theory, 31(4), pp. 193-214.
Li, C., Raman, K.K., Sun, L., and Wu, D. (2015) The SOX 404 internal control audit: Key
regulatory events. Research in Accounting Regulation, 27(2), pp.160-164.
Paracini, G. H., Malsch, B. and Tremblay, M. S., (2014) on the operational reality of auditors'
independence: Lessons from the field. Auditing A Journal of Practice & Theory, 34(2), pp.
201-236.
Roy, M. N. and Saha, S. S., (2018) Statutory Auditors’ Independence in Protecting
Stakeholders’ Interest: An Empirical Study. Springer.
BHP billiton ltd, (2016) Annual report [online] Available on:
https://www.bhp.com/-/media/bhp/documents/investors/annual-reports/2016/
bhpbillitonannualreport2016.pdf?la=en [Accessed on 27/09/18]
BHP billiton ltd, (2017) Annual report Available on:
https://www.bhp.com/-/media/documents/investors/annual-reports/2017/
bhpannualreport2017.pdf [Accessed on 29/09/18]
Bowlin, K.O., Hobson, J. L. and Piercey, M. D., (2015) the effects of auditor rotation,
professional skepticism, and interactions with managers on audit quality. The Accounting
Review, 90(4), pp.1363-1393.
Clikeman, P. M. (2018) Managers' and Auditors' Responsibilities for Evaluating Going
Concern. [online] Available on: https://onlinelibrary.wiley.com/doi/full/10.1002/jcaf.22319
[Accessed on 27/09/18]
Deumes, R., Schelleman, C., Vander Bauwhede, H., and Vanstraelen, A. (2012) Audit firm
governance: Do transparency reports reveal audit quality? Auditing a Journal of Practice &
Theory, 31(4), pp. 193-214.
Li, C., Raman, K.K., Sun, L., and Wu, D. (2015) The SOX 404 internal control audit: Key
regulatory events. Research in Accounting Regulation, 27(2), pp.160-164.
Paracini, G. H., Malsch, B. and Tremblay, M. S., (2014) on the operational reality of auditors'
independence: Lessons from the field. Auditing A Journal of Practice & Theory, 34(2), pp.
201-236.
Roy, M. N. and Saha, S. S., (2018) Statutory Auditors’ Independence in Protecting
Stakeholders’ Interest: An Empirical Study. Springer.
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Report: 13
Srivenkataramana, T., (2018) Application of Statistical Sampling to Audit and Control.
DHARANA-Bhavan's International Journal of Business, 12(1), pp. 14-19.
Srivenkataramana, T., (2018) Application of Statistical Sampling to Audit and Control.
DHARANA-Bhavan's International Journal of Business, 12(1), pp. 14-19.
Report: 14
Appendix
Review of Annual
reports
$US
(2016)
$US
(2017)
difference % change
Fees 640 644 4 .625%
Benefits 189 198 9 4.76%
Pension 11 11 null null
Total
remuneration for
all the services
840 853 13 1.54%
Appendix
Review of Annual
reports
$US
(2016)
$US
(2017)
difference % change
Fees 640 644 4 .625%
Benefits 189 198 9 4.76%
Pension 11 11 null null
Total
remuneration for
all the services
840 853 13 1.54%
1 out of 15
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