THE FINANCIAL TEMPLATE

Running head: FINANCIAL TEMPLATE
FINANCIAL TEMPLATE
Name of the Student
Name of the University
Author Note

FINANCIAL TEMPLATE2
NAME of
your Entity >>>
Wesfarmers Limited
DISCUSSION
FACTOR According to ASA200.13 (n) (i)
inherent risk (IR) is a measure of the
susceptibility of material
misstatement before considering any
internal controls.
LOW MODERAT
E
HIG
H
Nature of
client’s business
The Wesfarmers limited can be
described as an Australian
Conglomerate which is headquartered
in Perth in the West of Australia
( Wesfarmers.com.au 2019). The
enterprise has interests predominantly
in the New Zealand as well as
Australian chemicals, retails and the
fertilizers, coal mining along with the
industrial and safety products. The
firm can be described as the largest
company by revenue and has taken
over both the Woolworths and the
BHP. In consideration with this, it
becomes essential to understand that
the firm is the largest private
employer in Australia with more than
220000 employees. The firm was
found in 1914 as a cooperative which
provided adequate scope for
providing services as well as
merchandise to the different farmers.
The enterprise was listed on the
Australian securities exchange in the
year 1984 and has since then grown
into a major retail conglomerate.
The different areas where the firm is
involved in can be mentioned to be
the home, improvement, outdoor
living, apparels, general merchandise,
office supplies along with Industrial
divisions in the chemicals, fertilisers,
industrials as well as the safety
products ( Wesfarmers.com.au 2019).
The firm has 484000 stakeholders in
total.
The inherent risks identified are as
The nature of
clients
business
reflects
moderate
Inherent risk

FINANCIAL TEMPLATE3
follows:
Not recording the sales of any one
department for a certain day
Not taking into consideration the
returns for a department
Not recording the interests received
on deposits
Not recording the dividends earned
from stakeholders ( Schaltegger and
Burritt 2017).
Results of
previous audits
The external auditors of the firm can
be mentioned to be the Ernst and
Young. The company has audited the
financial report of the enterprise and
its related subsidiaries which also
comprise of the consolidated balance
sheet as of 30 June 2018. The various
statements which have been assessed
can be considered to be the
consolidated statement of
comprehensive income, the
consolidated cash flow statements,
declaration of the directors, notes to
the financial statements and the
comprehensive income statement. As
per the opinion of the different
auditors of the enterprise, the
financial report of the enterprise is in
accordance with the Corporations Act
2001 and provides a true and fair
view of the consolidated financial
positioning of the Group.
Additionally, the preparation of the
financial statements of the enterprise
abides by the Accounting standards as
well as the different Corporations
regulations which are crucial
( Preiato, Brown and Tarca 2015).
The different auditors in the external
auditing team also made an analysis
of the Remuneration report and in
their opinion, all the financial reports
along with the remuneration report
for the year ended as of 30 June 2018
The
results
of the
previou
s audits
reflect
low
inherent
risk.