Report Management Accounting 2022

Running head : MANGEMENT ACCOUNTING
MANGEMENT ACCOUNTING
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Brief overview of the company..................................................................................................2
Details of the audit committee...................................................................................................6
Assessment.................................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
The report aims towards the background of the mining and metal giant Rio Tinto. The
report further aims towards the details of the audit committee, its Board of Directors, and
various other committees (Fu, Y., Carson, E. and Simnett, R., 2015). It further adds on to the
code of the conduct for the professionals regarding the Audit Quality (Christensen, B.E.,
Glover, S.M., Omer, T.C. and Shelley, M.K., 2016). It grief summary of the company and
gives review of its authenticity in the financial statements. The references are given in the
Harvard style of referencing (Anaf, J., Baum, F., Fisher, M. and London, L., 2019).
Brief overview of the company
Rio Tinto is a Multinational Company, which has its headquarters in Australia. It was
founded in the year 1873. It deals mainly with the metals and therefore is considered as one
of the largest corporations in the years that have gone by. Its foundation was done at the time
of its association with investors who took complex of mining on Rio Tinto. It is located in
Huelva, situated in Spain. It was since the time when the company had been going through a
wide range of acquisitions and mergers to make a stand in the industry among the global
leaders of the mining and metal commodities. However its initial aim was on the extraction of
the minerals, operating significantly in the industry of refining , which is inclusive of the
refining of iron ore as well as Bauxite. It operates in the six continents. However it
concentrates mainly on Canada and Australia. It is a combination of the partly owned and the
wholly owned subsidiaries. It has its headquarters in Melbourne and London (Riotinto.com.
2019).
The Main heads in the Board of Directors are as under:
Simon Thompson : Chairman

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Simon Thompson seems to have a certain global experience in the industry of the
mining and metal, finance and corporate governance. Simon was the executive director of the
Anglo American plc. where he held designations of that of the chairman and the chief
Executive officer of the building blocks of infrastructure, Base metals Division, Chairman of
Tarmac and the chairman of the Exploration Division. Initially in his professional profile he
had held various designations in investment banking at S.G. Warburg and NM Rothschild
(Riotinto.com. 2019).
Jean-Sebastian Jacques: Chief Executive Officer
Blessed with strong leadership qualities, Jean has driven transformation and growth
projects at the Rio Tinto. As a Chief Executive Officer in Copper group from the year 2015,
Jean kept leading renaissance of the collection of products of the safety and the performance
of cash. Oyu Tolgoi, which is situated in Mongolia, and the US resolution. He has brought an
experience of not less than 15 years in the field of aluminium, bauxite and the steel industries
to the Rio Tinto (Riotinto.com. 2019).
Jacob Stausholm: Chief Financial officer
Having an experience of more than 20 years in the roles in the senior finance in
Europe, Latin America and Asia, Jacob has a great exposure of deep experience of wide
business cycles of capital oriented business firm and of the innovative technology and the
optimisation of the supply chain. He has spend around 6 years in serving various
organisations as the group chief financial officer and executive director of integrated
transport and logistics business of the group and the chief financial officer of the group. He
has spent around 19 years initially in the Royal Dutch Shell plc. There he had held a number
of financial positions, which are inclusive of the Chief Internal Auditor (Riotinto.com. 2019).
Megan Clark AC: Non Executive director

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Clark combines has a good exposure in the field of mining and metals with the help
of the great leadership exposures in the fields of Science, research and technology. She held
the position of the chief executive officer of the Commonwealth Scientific and Industrial
Research Organisation from the year 2009 until 2014. Megan has initially held various
designations including the Western Mining Corporation and held the authority of the Director
in NM Rothschild and Sons (Australia), and that of the Vice-president in the organisation
BHP Billiton. Her sheer dedication towards her work and the sustainable development. The
knowledge of the reforms brought valuable views to the Board (Riotinto.com. 2019).
David Constable: Non Executive Director
David Constable has a strong Board in the Corporate Governance, leadership
credentials. The exposure, that he had worldwide in the field of engineering, mining and the
chemical industries are inclusive of the implementation of the major capital projects. He was
the Chief Executive Officer of the of Sasol Limited from 2011 to 2016. He also has shared
his exposure with the Fluor corporation from the year 1982 to 2011 having the designation of
the Group President, Operations (Riotinto.com. 2019).
Michael L’Estrange AO: Non Executive director
Michael L’Estrange AO, the Non Executive director of Rio Tinto, was appointed on
September 2014. Blessed with a differentiated career in public service, which gave him
practical exposure of the broad geostrategic and societal trends that persuaded the mining and
metal giant Rio Tinto. Michael L’Estrange AO held various significant designations for the
Government of Australia, which is inclusive of the Head of the Cabinet Policy United the
Department Secretary of the Foreign affairs and trade. He was also the High Commissioner to
the Order of Australia (Riotinto.com. 2019)..
Simon Mckeon : Independent Non-Executive Director (Chief Financial Officer)

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Simon McKeon was appointed in January 2019. Simon McKeon brings insights in to
a wide variety of sectors which is inclusive of the financial services, the law, the Government
and Charities. He served as a practitioner before working with the Macquarie group, where he
had spent around 30 years inculcating as the Executive Chairman of the Business affairs in
the state of Victoria, Australia. He also fulfilled the duty of the Chairman of AMP LTd and of
the Research and Development Body of Australian Government, CSIRO. He worked in the
Australian takeovers Panel, where he had become the first Prime Minister (Riotinto.com.
2019).
Steve Allen:
Steve joined Rio Tinto in the year 2017. Steve serves as the Secretary of Rio Tinto plc
and the Joint Company Secretariat of Rio Tinto ltd. Before working with the mining and
metal giant Rio Tinto, he has held positions of that of the Deputy General Counsel of BG
Group plc. He worked as the secretary of BG Group from the year 2011 to 2016. He has
previously been the Chief Counsel, Corporate from the year 2008 to 2011.He was a corporate
Lawyer working for Herbert Smith LLP in London before being a part of the mining and
metal Giant Rio Tinto (Riotinto.com. 2019).
Sam Laidlaw: Independent Non-Executive Director (Chief Financial Officer)
Sam Laidlaw, was elected as the Independent Non-Executive Director (Chief
Financial Officer) in February 2017. Laidlaw, possesses more than 30 years of expertise in
the field of high-capex industries in which the critical elements are safety and the engagement
of community. His previous executive roles were inclusive of the President and the Chief
operating officer, Amerada Hess Corporation; Chief Executive Officer, Enterprise Oil plc.;
Executive Vice president, Chevron Corporation; Chief Executive officer, Centrica plc and the
membership of the United Kingdom Prime Minister’s Business advisory Group.

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Details of the audit committee
The auditor of the Rio Tinto, is pleased enough on the performance of the Audit
Committee. The committee remit is the assistance in the Board of Directors in fulfilling the
oversight responsibilities, adherence and the assurance (Kassem, R. and Higson, A.W.,
2016). The Audit tender procedure for the External Auditors of the group are prepared in the
month of June 2018. It was advised that the Board should join KPMG as the external auditors
who will affect the 2020 financial year. The Board gave the consent towards the same and the
formal appointment occurred which was subjected to the approval of the shareholder early in
2020 (Riotinto.com. 2019).
Committee remit:
The main duties of the Audit Committee are mentioned as under:
Financial Reporting: the committee reviews the key judgements that are needed to aplly on
the accounting Standards and fir the preparation of the financial Statement of the Group
(Zager, L., Malis, S.S. and Novak, A., 2016). The committee is also reviewing the reporting
which is narrative, that matches the objective of the maintenance of the integrity of financial
reporting of the group (Riotinto.com. 2019).
External audit: the Audit committee oversees the link with the auditors of external affairs
and review of all other services, which are of non-audit nature, that they render and the
respective eligibility for the services that they are providing, in order to safeguard the
independence of the auditors and their objectivity (Zager, L., Malis, S.S. and Novak, A.,
2016).

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Framework for control of the internal affairs and management of risk: the committee
considers it the prime duty to monitor the effectiveness of the internal control of the group,
which is inclusive of the financial reporting. The committee also sees the of the Group’s risk
management framework.
Internal Audit of the Group: Audit committee of the mining and metal Giant Rio Tinto
takes charge of overseeing the work of the General Investment Accounts as well as their
head, who functionally would report to Chairman of the Committee.
Ethics and Integrity: Audit Committee takes the oath to work on the functions of the Ethics
and Integrity of the Group, which included the “Talk to Peggy” whistleblowing programme
until the beginning of 2019 (Backof, A.G., Bowlin, K. and Goodson, B.M., 2018: Cameran,
M., Prencipe, A. and Trombetta, M., 2016).
The previously mentioned duties that are a part of the annual work plan, ensure that
we take into consideration the issues on a timely basis (Yang, R., Yu, Y., Liu, M. and Wu,
K., 2018). The Audit committee has the power to make investigation on any matters within
the remit of the Audit Committee. They do have the Authority to use any resources of the
Group that may be required reasonably, and they have direct access to the external auditors
(Riotinto.com. 2019).
Assessment
Audit Quality can be referred as the procedure that involves the controlling of the
audit task that has been performed. The audit task that has been performed has to be in
accordance with the APES 110 Code of conduct (DeZoort, F.T. and Harrison, P.D., 2018).
The up gradation of the ISO9000 has shifted its focus of the audit to the measurement of the
actual performance from procedural compliance (Gaynor, L.M., Kelton, A.S., Mercer, M. and
Yohn, T.L., 2016: Raju, R.S., Guy, G.S., Majid, A.J., Babidge, W. and Maddern, G.J., 2015).

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Audit quality of a certain audit is judged with the help of audit quality indicators (Mao, J.,
Ettredge, M. and Stone, M.S., 2019). The Audit Committee reviews the internal control
systems as well as the management of risks framework. They take care of the risks which are
involves within their remit (Riotinto.com. 2019).
From the above study it has been seen that the Audit committee has performed the
duty with utmost independence (Nicoll, P., 2016). There has been no persuasion to it. The
auditors has performed the duties of Financial Reporting with integrity (Goodwin, J. and Wu,
D., 2016).
Conclusion
On the basis of the above mentioned reports, the accurate conclusions can be drawn
about the stakeholder analysis of the mining and metal giant Rio Tinto, which happens to be
one of the largest mining giants in terms of the global revenues. The Audit committee has
performed the duty with utmost independence. There has been no persuasion to it. The
auditors has performed the duties of Financial Reporting with integrity. The report also
exaggerates on the terms like the Independence of the Financial Auditors, which is an
important aspect of the preparation of the annual report. Furthermore it could be seen that the
Board of Directors, the Chief Executive Officers and the other members are qualified enough
to carry the designation that they are given.

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References
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of Accounting Research, 54(1), pp.3-40.
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industry transnational corporations: a study of Rio Tinto in Australia and Southern
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Cameran, M., Prencipe, A. and Trombetta, M., 2016. Mandatory audit firm rotation and audit
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Gaynor, L.M., Kelton, A.S., Mercer, M. and Yohn, T.L., 2016. Understanding the relation
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Mao, J., Ettredge, M. and Stone, M.S., 2019. Are Audit Fees and Audit Quality Affected
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