Auditing Australia Question Answer 2022

Running Head: AUDITING
AUDITING
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to Question 1.................................................................................................................2
Nature and Core Business......................................................................................................2
Answer to Question 2.................................................................................................................3
Key Business and Inherent Risk for Industries......................................................................3
Reference....................................................................................................................................5

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Answer to Question 1
Nature and Core Business
Woolworths Group Limited is the company that is based in Australia. The company is
engaged in the operation of retail. It operates within the sector of Consumer Staples, which is
listed in ASX indices. The company’s segment is consists of Australian Food and Petrol,
BIGW, Endeavour Drinks Group, Hotels and New Zealand Supermarkets. Further, segment
of the Australian food and Petrol is engaged in procuring petroleum and food products in
order to resale it to the Australian customers (woolworthsgroup.com 2019). The segment of
the New Zealand Supermarket is engaged in procuring products of the food and liquor in
order to resale to the customers in the New Zealand. Further, segment of BIGW is engaged in
procuring products of the discount general merchandise to Australian customers. Lastly, the
segment of hotel is engaged in provisions of the ranges of the services of leisure and
hospitability that includes entertainment, gaming, alcohol as well as food
(woolworthsgroup.com 2019).
Qantas Limited is the Australian based company that operates domestic as well as
international airline. It is one of the leading airlines of world. This company is engaged in
operations of the international as well as domestic services of air transportations, provision of
the services of freight as well as operations of the frequent flyer loyalty program. The
segments of the company is consists of Qantas International, Qantas Domestic, Qantas
Loyalty, Qantas Freights, Jetstar Group and Corporate. Moreover, segments of Qantas
International, Qantas domestic as well as Jetstar Group is consists of passenger flying
businesses (Investor.qantas.com. 2019). The segment of Qantas Freight is engaged in express
freights and air cargo businesses. Lastly, the segment of Qantas Loyalty is engaged in
customer loyalty recognition program. Further, the main business of the company is

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transportations of the customers with the help of using two brands of airline, which are Jetstar
and Qantas. The company also operates the subsidiary businesses that include other
businesses and airlines in the specialist markets, for instance Q Catering. The brand of airline
operates in domestic, regional as well as international services (Investor.qantas.com. 2019).
Answer to Question 2
Key Business and Inherent Risk for Industries
The Woolworths Group is operating in the retail industry. This industry is subject to
certain inherent risks such as global economic slowdown, damage to their brand or
reputations and the market of increasing competitions. Further, other inherent risks includes
distributions or the supply chain failures, technology failures, failures for innovating and
meeting needs of customers as well as failure for retaining top talent. Hence, in case of
Woolworth Group; the company is operating in the dynamic market that presents not only
opportunities but also great level of risks, which could impact materially the ability of the
company in meeting the responsibilities for the customers, suppliers, team members,
communities served by company, shareholders as well as other stakeholders (Ruhnke and
Schmidt 2014). The material risks could affect the business performance as well as reputation
of the company. The performance of the company is also affected by the other risks, which
applies mostly to the businesses as well as households of Australia. The company is
managing its risks by evaluating the long-term implications of the change in climate into the
strategic planning as well as in the ongoing management of the risks of business (Rose 2015).
The Qantas is operating in airline industry. The industry of aviation faces great
amount of inherent risks. Further, these inherent risks is consists of but are not restricted to
the exposure of changes in the conditions of economy, foreign exchange and fuel volatility,
changes in the regulations of government as well as other exogenous events, for instance

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incidents of aviation, war or the epidemic and natural disasters. In Qantas, certain risk of
business that may impacts achievement of the strategy as well as financial prospects of the
Group (Coetzee and Lubbe 2014). The focus of the Group is for continuously improve
controls for managing or mitigating the risks as nature of risks as well as risks landscape for
the Qantas Group has not changed materially in comparison to previous year. Moreover,
Qantas Group continues for operating in the domestic as well as international environment in
which the elevated political risks for the business will be norm. Further, increase in the
unpredictability level results into continuing planning to the wider ranges for the risks as well
as scenarios in order to ensure their robustness (BOTEZ 2015).

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Reference
BOTEZ, D., 2015. Study Regarding the Need to Develop an Audit Risk Model. Audit
financiar, 13(125).
Coetzee, P. and Lubbe, D., 2014. Improving the efficiency and effectiveness of risk‐based
internal audit engagements. International Journal of Auditing, 18(2), pp.115-125.
Investor.qantas.com. 2019. [online] Available at:
https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgyw/
file/annual-reports/2018-Annual-Report-ASX.pdf [Accessed 6 Oct. 2019].
Rose, R.V., 2015. Approaching internal audits from an enterprise risk management
perspective. EDPACS, 51(1), pp.1-5.
Ruhnke, K. and Schmidt, M., 2014. Misstatements in financial statements: The relationship
between inherent and control risk factors and audit adjustments. Auditing: A Journal of
Practice & Theory, 33(4), pp.247-269.
woolworthsgroup.com, 2019. [online] Available at:
https://www.woolworthsgroup.com.au/icms_docs/195396_annual-report-2018.pdf [Accessed
6 Oct. 2019].