Auditing Report on NAB: Professional, Ethical, and Legal Factors

A Hypothetical Case
based on NAB

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
(a) Professional, ethical and legal factors...................................................................................1
(b) Statuary and professional ethical requirements.....................................................................1
(c) Major risk areas.....................................................................................................................2
(d) Five risk areas identified in key account and their assertion.................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
APPENDIX......................................................................................................................................6

INTRODUCTION
Auditing is a procedure of analysing an organization (or individual's) financial records to
evaluate if there are reliable and in accordance with any applicable rules, regulations and laws
(Cook, van Bommel and Turnhout, 2016). To conduct auditing appoint a persona who is
qualified for the job through statements, papers, information and comments received from the
authorities. The aim of the report to highlighted poor audit quality by Australian securities and
investment commission. This report based on the Hypothetical case on National Australian Bank.
In the report covers professional, legal and ethical factors, statuary and professional ethical
requirements. To identified the risk conduct SWOT and PEST of bank and calculate financial
ratio from the financial report.
TASK
(a) Professional, ethical and legal factors
To continue the appointment as an auditor for the current year focus on the different
factors like ethical, professional and legal factors such as Legal Factors – There are defined those factors that helps to conduct business activities
effectively and affect to cultural of company. Such as – Did not take legal action for
company due to mismatchment of accounts, provide freedom for develop financial
statements and conduct transactions. Professional factors – These factors important for conduct auditing of any company even
they have personal relation. Such as – Does not apply all auditing standards, create
personal relation and ignore irrelevant data.
 Ethical factors – In this factor fulfil all the requirements of auditing standards in
appropriate manner. Such as – integrity, public interest, objectivity & independence
After the analysis of all the factors it is understand that do not continue the appointment
as an auditor of EY for NAB.
(b) Statuary and professional ethical requirements
As per the media reports and financial reports it is identified that statutory and profession
ethical requirement become reason of breach. As per the revelation comes as leaked documents
presented that NAB had breached its own strategies on dealing with international sanctions on at
least three occasions (More and Chaudhari, 2016). Due to delayed of payment files leaked by a
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