HI6026 : Audit, Assurance and Compliance

1
HI6026 - Audit, Assurance and Compliance
Assessment item 1 — Individual Assignment

2
Part A: Executive Summary
The report is developed to gain an analysis into the corporate governance principle
provided by ASX (Australian Securities Exchange). This is essential to ascertain that the
materialistic information provided to the stakeholders is accurate and reliable. Also, the risk
assessment procedures stated by the standard auditing procedures as per the ASA 150 is
discussed in detail in the report. The analytic procedures are established by the Board to identify
the audit risk and analysing the methods implemented by the company for minimising them.
This has been carried by analysis of the governance statement and risk assessment procedures of
an ASX listed entity, that is, Lovisa Holdings Limited.

3
Contents
Part A: Executive Summary...........................................................................................................2
Part B: Analysis of ASX Corporate Governance Council Principles Compliance by Lovisa
Holdings Limited............................................................................................................................4
Part C: Risk Assessment.................................................................................................................6
References.....................................................................................................................................13

4
Part B: Analysis of ASX Corporate Governance Council Principles Compliance by Lovisa
Holdings Limited
Lovisa Holdings Limited (LOV) is recognized to be fast fashion jewellery retailer having
its stores in international markets. The company has about 265 stores out of which its 145 stores
are present in Australia. The company mainly carries out its operations across Australia, New
Zealand and Singapore. The company is listed on ASX and therefore need to comply with the
corporate governance principles of the stock exchange to ensure its sustainable growth and
development within the country. ASX Council principles and recommendations as applied by
Lovisa Holdings Limited are disused in detail as follows:
Developing Solid Foundations for Management & Oversight
It is necessary for the ASX listed companies to provide details about the roles and
responsibilities of Board and management in the governance framework. The company
governance framework has provided detailed information about its compliance with this ASX
Council principle in its governance framework. The main role of Board has pointed in the
governance statement is to improve the company performance and create maximum value for
shareholders. It also has provided the information in relation to Board Charter developed by the
company for defining the roles of Board and management (Corporate Governance Statement,
2018). The procedures adopted by Lovisa Holdings Limited to examine the performance of
Board and management are also discussed in its governance framework as per ASX principles.
Board performance is reviewed on annual basis by its committees and the feedback is discussed
with an external facility and the managing director and CEO. The performance of the
management team is assessed by the remuneration committee developed by the Board (Mallin,
2016).
Structure the Board to Add Value