HA3032 Auditing Assignment Help
Added on 2020-03-23
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HA3032 AuditingTrimester 2/20171
EXECUTIVE SUMMARYThe mining industry is site-specific indicating extraction of valuable materials,minerals or metals from the earth. Newcrest Mining Limited is worlds most known goldmining companies with a key focus in the geographical areas of Australia. The financialdata’s of Newcrest Mining Limited reveals that it has strong cash flows realising higher goldprices, which offsets its copper prices and increasing costs of inputs. This industry is highlyfragmented and NCM is competing fiercely to drive a significant amount of countrieseconomy. Mining industry of Australia is intensely competitive and the global giants of themarket are BHP Billiton and Rio Tinto. The company is in stiff competition with these tworivals. For the better understanding of industry tools have been used PEST, SWOT andPorter’s five forces. Lastly a clear understanding of NCM limited accounting and expansionneeds are recognized. Further identifying their organization structure, workforce policies andcorporate governance adherence to have a comprehensive outlook.
EXECUTIVE SUMMARY......................................................................................................2LIST OF FIGURES.................................................................................................................5Introduction..............................................................................................................................6Part 1.........................................................................................................................................6Newcrest Mining Limited operations.....................................................................................6Investment and Financing activities.......................................................................................6Financial reporting practices..................................................................................................7Part 2.........................................................................................................................................7Industry size and growth........................................................................................................7Industry supply chain...........................................................................................................10Major Players and its Market share of industry players.......................................................10Critical success factors.........................................................................................................11Major Key Threats...............................................................................................................12Part 3.......................................................................................................................................12Legal and regulatory requirement........................................................................................12Part 4.......................................................................................................................................13PEST analysis.......................................................................................................................13SWOT analysis.....................................................................................................................13Porter’s five forces...............................................................................................................14Other Factors........................................................................................................................15Part 5.......................................................................................................................................15Industry Development and new product and services..........................................................15Business Expansion..............................................................................................................16New accounting and regulatory requirements......................................................................16
Current and prospective financial requirements..................................................................16Employing IT.......................................................................................................................16Effects of implementing strategy.........................................................................................16Part 6.......................................................................................................................................17Part 7.......................................................................................................................................17Communication and commitment towards greater competence..........................................17Participation by those charged with governance..................................................................18Management’s philosophy and operational style.................................................................18Organization structure and authority and responsibilities....................................................18Human resource...................................................................................................................18Conclusion...............................................................................................................................19Reference.................................................................................................................................20
LIST OF FIGURESYFigure 1: Global mining share....................................................................................................6Figure 2: Business investment by different industries...............................................................7Figure 3: Volume and value of mining commodities.................................................................7Figure 4: Market share in %.......................................................................................................9Figure 5: Market capatalisation..................................................................................................9
Introduction Mining is the extraction of valuable materials, minerals or metals from the earth. Themining industry is primarily an important industry and contributor to the Australian economy.The mining industry is currently facing stiff challenges; the prominent amongst them areassociated with employment, energy and environment (Trudinger, Walter and Ralph, 2013).The key aspect of so much hassle about this industry is the growth of global economies andtechnological advancement. One of the Australia’s most renowned mining companies isNCM (Newcrest Mining Limited). The current report has been drafted to assess theperformance of company and areas where it can improvise by considering the potential risksof the industry. Part 1Newcrest Mining Limited operationsNCM is the worlds most known gold mining companies. It is engaged in the activitiesof exploration, mine operation, mine development and sale of gold’s as well as copper/goldconcentrate. It possesses a wide portfolio of mines and pipelines of Greenfield andbrownfield exploration projects. It has its mines located in Australia. Investment and Financing activities The Newcrest has a keen interest in five production provinces across four countrieswith a key focus on the geographical areas of Australia. The company is well established tomake strong revenues by delivering high quality of gold assets on a long-term basis. Thecompany places significant focus on strategic research and development regarding theunderground mining technologies for bulk production. This investment in advanced technicalinstruments has helped the company in learning methods for caving mining. The financial data’s of Newcrest Mining Limited reveals that it has strong cash flowsrealising higher gold prices, which offsets its copper prices and increasing costs of inputs.There has also been a significant improvement in operating cost profile (Hajkowicz, Heyengaand Moffat, 2011). The companies statutory profits of the FY16 is US$332 million by drivinga production of 2.439 million ounces of gold. The Net debts have been substantially reducedby 27% over the year, which amounts to approx. US$2.1 billion. The gold production hasalso been at a mounting state with about 1% rise amounting to 2.4 ounces for the year. Theoverall financial performance of the company has been solid with all positive cash flows.
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