Auditing & Assurance for BHP Billiton

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Auditing & Assurance

BHP Billiton
Executive Summary
The function and function of auditor is vital in the process of business because it is
linked to the ethical movement of the company and the reports need to be verified by
the auditors. In this report, BHP Billiton listed on the ASX and a giant in the mining
sector is selected. The report commences with an introduction followed by key audit
matters, audit independence and other topics relevant to audit.
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BHP Billiton
Contents
Introduction.............................................................................................................................................3
Compliance with the independent needs.................................................................................................3
Non-audit services...................................................................................................................................3
Auditor remuneration..............................................................................................................................4
Nature of the non audit services..............................................................................................................4
Compliance with the independent requirements......................................................................................4
Key audit matters....................................................................................................................................5
The difference in management’s responsibilities from that of the auditors..............................................6
Material subsequent events......................................................................................................................7
The effectiveness of the auditor’s material information..........................................................................8
Whether material information is under-reported or missing....................................................................9
Conclusion............................................................................................................................................10
References.............................................................................................................................................11
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BHP Billiton
Introduction
The role of auditors assumes a place of special importance because it is in direct link
with the ethics and functioning of the company. The corporate governance of the
company relies on the function of the auditor. Moreover, the auditor report lays a
strong foundation when it comes to the concept of a stakeholder. In this report,
Wesfarmers Limited is selected that is listed on the ASX and in the light of this
company; the role of the auditor is studied in an elaborate manner. The report initiates
with the introduction followed by the auditor’s independence, key audit matters, and
the audit committee (BHP Billiton, 2017). Further, the adequate discussion is spread
on audit opinion and various other matters pertaining to material events
Compliance with the independent needs
The honesty and the hardworking of the company is highlighted by the by the audit
report and the functioning of the auditing body. It is seen that BHP has put up a good
and fair show with reference to the auditing assignments related to the company. All
this has been made possible with the help of systematic audit planning and balanced
networking. Also, the company has been seen to act in accordance with the Audit
standard and the Corporation regulation 2001 which has been beneficial to the
company. Audit control, remuneration, auditing facts is some of the important
highlighted points that will appear in the report along with the auditing techniques of
the company and the acts and the execution of the plans by the main governing bodies
(Geoffrey et. al, 2016).
Non-audit services
Even though the external auditor has facilitated in the provision of a few non-audit
services, yet the independence and objectivity of the company’s external auditor are
protected by limitations on the offering of such services. For instance, various kinds
of non-audit services can be taken by the external auditor only with the RAC
approval. In contrast to this, there may be services that may not be accounted for at
all. This includes services wherein the external auditor may indulge in affairs that
would be handled by the management (BHP Billiton, 2017). In addition, the auditor
can also operate in the advocacy role for the company. Nevertheless, the RAC has
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