Audit and Assurance Report of BHP Billiton Limited | Desklib

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.

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

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.