Audit of Myer Pty Ltd

Running head: AUDIT
Audit
Name of the student
Name of the university
Student ID
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1AUDIT
NAME of
your Entity
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Myer Pty Ltd
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 MODERA
TE HIGH
Nature of
client’s
business
Myer Pty Ltd is one of the largest departmental
store groups in Australia focussing on placing
the customers 1st in each decision they make and
every action taken by them. It operates and owns
chain of the departmental stores in Australia it
provides footwear, apparel, accessories for
children, misses, men, women, beauty products
comprising of skincare, make up, grooming
products for men, fragrance, home fragrance,
electrical and toys. The company does not
operate the business internationally. However, as
the competition in Australian retail sector is
quite high inherent risk is there the company will
try to manipulate its sales figure to show it more
profitable than actual to the investors and
potential investors (Investor.myer.com.au 2019)

Results of
previous
audits
For the year 2018 as well as 2017 the auditors
expressed unqualified opinion on the financial
reports of the company. As per the audit firm
PWC, the financial statement of the company
gives true and fair view of the entity’s financial
position dated on 28th July 2018 and the financial
performance for the period under concern.
Further, the financial statements are prepared in
compliance with the Corporation Regulations
2001 and Australian Accounting Standards. As
the auditors issued unqualified report for both
the years the inherent risk is low (Auasb.gov.au
2019).

Initial
versus
repeat
audits
For last 3 years that is 2016, 2017 and 2018 the
audit for the company Myer Ltd is conducted by
the same audit firm that is Pricewaterhouse
Coopers (PWC). Though the auditor will have
better knowledge regarding the business
operation of the company appointing the same
auditors or year after year will have impact on
the auditor’s independence and will give rise to
self interest threat which in turn will violate the
ethics under APES 110 – Code of ethics for
professionals. Hence, in case where the
independence of the auditors are impacted the
