Report has focused on the process of auditing and assurance of the company

Running head: AUDITING AND ASSURANCE
Auditing and Assurance
Name of the Student
Name of the University
Author’s Note

AUDITING AND ASSURANCE1
Executive Summary
This current report has focused on the process of auditing and assurance of the
company along with considering the accounting standard and other auditing standard.
Elders limited have been considered in the study and the annual report have been
disclosed by the company with proper maintaining of standard. Elders limited is an
Australian multinational company which is based in Adelaide and this public limited
company is listed in ASX and falls under the industry of agribusiness. This study
includes the investigation of the research team which reports on the true and fair value
of the financial statement along with maintaining high profile for the business. The
opinion for independent audit report is to be maintained and focusing on the key audit
matters of the company. Different types of auditing standards have been discussed in
this study which sheds light on the nature and treatment of the financial statement.
Moreover, certain concepts and practices have also been discussed in the study which
highlights the impact as well as the relationship of the auditing standards.

AUDITING AND ASSURANCE2
Table of Contents
Introduction........................................................................................................................3
Problem statement.............................................................................................................4
Methodology......................................................................................................................4
Findings...........................................................................................................................10
Implications of findings....................................................................................................14
Conclusion and recommendation....................................................................................20
References.......................................................................................................................22

AUDITING AND ASSURANCE3
Introduction
Auditing is vital for an organisation as the process of auditing involves the
examination of financial statement, statutory records and non-financial disclosure of the
business. The true and fair value of the concern is also maintained by the process of
auditing which are associated with the normal business course. Auditors are appointed
by the company for inspecting the report that are prepared by the management of the
company. Assurance is the overall process of analysing the total assessment of
accounting entries that have been recorded in the books of accounts of the business.
The accuracy of the financial statement is analysed by the process of assurance which
points out the right process for evaluating the optimum results. In this study, Elders
limited have been taken into consideration along with disclosing the annual report for
the current financial year. As the member of the investigation team assist in researching
and reporting on true and fair value status on the financial statement that are mainly
prepared by the company. Elders limited has disclosed their annual report which consist
of independent audit report and those are important in focusing the details which are
present in the audit report of the company.
The key audit matters is provided by the appointed auditors of the company and
those are to be approached during the annual general meeting. The above mentioned
facts are to be investigated by using the risk based auditing approach and some
concepts of auditing is also included in the study. The standard of auditing and certain
case laws have been taken into considered for better analysis of critique opinion.
Different types of auditing standards have been included in the study which points out
the effective application of standards and their importance in the study. On the other
hand, the impact and the relationship of auditing standard is associated with the study
which includes the concepts of accounting and practices that would help in analysing
the mentioned auditing standard. Elders limited is an Australian multinational company
which is based in Adelaide and founded in the year 1839 by Alexander Lang Elder. This
public limited company is listed in ASX and falls under the industry of agribusiness.
Moreover, this report includes the corporate governance, inherent control risk, frauds

AUDITING AND ASSURANCE4
and misappropriation and others. Australian standard of auditing is included which are
basically based on the international standard of auditing.
Problem statement
The true and fair value of the financial statement is to be maintained and certain
opinion is to be provided from the independent audit report that are associated with key
audit matters. The main purpose of this report is to analyse the annual report of Elders
limited for the year 2018 and evaluating the implementation procedure of Australian
Accounting standard. The consequences and outcomes is also to be analysed and the
problem on the annual report is to be included with the external independent auditor of
Elders limited. It can also be seen that the external auditing process is performed by a
top notch auditing firm, PWC. The primary problem that is highlighted by the auditors of
the company is to measure the related assets and claims for the key audit matters. After
a certain period of time, unpredictable factors might affecting the outcome which might
take long time for recovering.
Key audit matters is considered as the second problem that might demand
significant judgement on the future flow of cash which are estimated for a particular
timeframe. Some policymakers noticed the problem and recognised different aspects for
maintaining the policy and the auditor claimed for significant judgement. The impairment
of key audit matters is also another problem that are highlighted in the annual report of
the company. This problem requires significant level of judgement and focus by the
auditors and might lead to its solution. Therefore, the main problematic area is the true
and fair value of financial statement along the key audit matters. Some of the auditing
standards have been chosen that relates to Elders limited which would help in analysing
the problem and their respective results.
Methodology
Methodology is the procedure or the methods that is used in the study along with
pointing out the significance of the study. The techniques and methods that are used in
this particular study are highlighted and the theoretical analysis is also mentioned in this
particular study (Cohen and Simnett 2014). The methodology of audit mainly targets the
audit efforts that are required to be reflected in the areas of financial statement of the

AUDITING AND ASSURANCE5
company. The process of integrated quality control mainly includes the policies and
procedures which are required to be engaged for maintaining the nature as well as
effectiveness of the services. The audit methodology is the process that is established
by cutting edge technology which are required to be improve in the normal business
course (Junior, Best and Cotter 2014). Different steps that are associated with the audit
methodology such as planning, assessment of risk, evaluation of internal control, testing
of audits and conclusion.
Planning for audit is the first step in the process of auditing which is associated
with preparation of timetables as per the requirements. The strategy for auditing is to be
structured as per the business along with assessment of risk in the critical business
areas (Simnett, Carson and Vanstraelen 2016). It also includes the evaluation of
internal controls which are to be included in the financial data of Elders limited. The
appointed auditors of the company uses sophisticated tools that includes integration of
data and interrogation of software by which the transaction and balances are to be
enhanced for the operation. The accuracy of work results in actionable sights that
rapidly drive in improvements over the company (Farooq and De Villiers 2017). The
data that have been gathered from the company follows an ethical way and no one
have been forced to gather the information which is included in the study. Data
Protection Act is used for protecting the data which are gathered for the company.
True and fair value of financial statement
The process of auditing involves the techniques that is true and fair value of
financial statement and these statement is to be free from material misstatement. The
true and fair value of the financial performance provides the financial position of the
company along with maintaining the accounting literature (Marques, Santos and Santos
2016). True value of the financial statement is the correct fact that are to be prepared as
per the reporting framework such as the IFRS and ASA. On the other hand, fair value of
the financial statement mainly presents the faithful information without any kind of bias
along with reflecting economic substance of the recorded transactions. The
responsibilities of the directors of a company is to prepare the financial statement after
considering the true and fair value of financial statement at the time of providing the