Audit, Assurance and Compliance in Origin Energy's 2018 Annual Report

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
Name of the Student
Name of the University
Author’s Note

1AUDIT, ASSURANCE AND COMPLIANCE
Executive Summary
The main intention behind the preparation of this report is to conduct the assessment
on the major roles and responsibilities of the auditor and for the purpose of the report, the
latest annual report of Origin Energy has been taken into consideration. After taking into
consideration the main aim, the report is involved in the analysis and evaluation of all the
section related to audit in the 2018 annual report of Origin Energy. Some of the major parts
that have been considered in the analysis process are the compliance with the independence
requirements of the auditors, non-audit services along the remuneration of the auditors, the
explanation of the key audit matters, the presence of audit committee, responsibility of the
auditors and others. On the overall basis, it can be said that the outcome of this report will
make the third party stakeholders possible to assess the role and responsibly of the auditors in
enhancing the audit quality.

2AUDIT, ASSURANCE AND COMPLIANCE
Table of Contents
Introduction................................................................................................................................... 3
Auditors’ Independence Requirement...........................................................................................3
Non-Audit Services........................................................................................................................ 4
Auditor’s Remuneration................................................................................................................ 4
Key Audit Matter............................................................................................................................6
Audit Committee........................................................................................................................... 8
Audit Opinion.................................................................................................................................8
Difference between Responsibilities..............................................................................................9
Material Subsequent Events..........................................................................................................9
Analysis of the Material Information by the Auditors....................................................................9
Material Information Missing......................................................................................................10
Follow-up Questions....................................................................................................................10
Conclusion................................................................................................................................... 11
References................................................................................................................................... 12

3AUDIT, ASSURANCE AND COMPLIANCE
Introduction
The prime responsibility of the auditors lies in the inspection of the financial reports of
the business entities in the presence of the required compliance with all the needed audit
standards and principles for the ascertainment of the fact that there is not any material
missstements in the financial statements of the business entities (Schmidt, Wood and Grabski
2016). At the same time, the audit report is regarded as a major mechanism for the investors
and other users for understanding the truthfulness of the financial health of the business
entities. As audit report help the inventors, it has become the prime necessity for the
accountable audit committees to implement the required system for the enhancement of the
quality of the audit report. In the presence of the implemented initiatives by some of the audit
authorities like CPA, IAASB and AUASB, it has become a major necessity for the auditors and the
companies to publish the details about the major material issues in the financial statements;
and these issue can be called as Key Audit Matters (Wright 2016). Moreover, the increased
responsibility of the auditors is the effective communication of the assessed key audit matters
in the annual report in simple English language. The below discussion takes an attempt to
analyze these aspects related to the audit in the annual report of Origin Energy.
Auditors’ Independence Requirement
Both the internal and external auditors of the business entities must maintain the aspect
of independence from the parties that may have financial other interest in the audit client. For
this reason, the auditors should be honest in the audit profession to maintain the integrity.
KPMG, one of the top four audit firms, was the audit partner of Origin Energy in 2018. The