SBF – Audit Performance Analysis

Running head: SBF – AUDIT PERFORMANCE ANALYSIS
SBF – AUDIT PERFORMANCE ANALYSIS
Name of the Student:
Name of the University:
Author Note

1SBF – AUDIT PERFORMANCE ANALYSIS
Table of Contents
Introduction..................................................................................................................2
Discussion....................................................................................................................2
Answer to question 1:-.............................................................................................2
Answer to Question 2:-.............................................................................................4
Answer to question 3:-.............................................................................................7
Conclusion....................................................................................................................8
References....................................................................................................................9

2SBF – AUDIT PERFORMANCE ANALYSIS
Introduction
This report titled “SBF – AUDIT PERFORMANCE ANALYSIS” is
prepared to analyse the audit performed by Samway Baker Fitzgerald (SBF) for Far
Faraway Pastoral Limited for the 2018-19. The SBF is an accounting firm with
several office across the country. SBF also a largest regionally based auditing
practice firm in Australia. While, Far Faraway Pastoral Limited (FFA) is an
Australian Stock Exchange (ASX) listed company. FFA is major agricultural
company of Australia having head office in Orange. This report advises to one of its
partner auditors regarding the ASX Corporate Governance Principle related to their
auditing performance for FFA (Miglani, Ahmed & Henry, 2015). Further, this report
prepare a response toward another an audit partner based on the American
Accounting Association (AAA) in respect to the Code of Ethics for Professional
Accountants. Lastly, this paper prepare a report to the managing partner of SBF
based on the case law and auditing standard to answer the question related with the
SBF audit performance for FFA (Palmrose & Kinney Jr, 2018). This report try to
highlight the miss performance of the partners of the SBF regarding the audit of the
FFA for the year 2018-19 and their solutions and penalties as per the different
standard set by the government. This report also provide the recommendation and
guidelines regarding the business ethics and other responsibilities of the auditor
stated in the government policies.
Discussion
Answer to question 1:-
Samantha Gabrielle, a partner of SBF, was analysing the corporate
governance of FFA. Reported that, at 30 June 2019, FFA board of directors consists

3SBF – AUDIT PERFORMANCE ANALYSIS
CEO Bruce Blanch and CFO Alexandra Rose along with the three non-executive
director. This structure is breached the Corporate Governance Principles and
Recommendation of ASX. As the ASX corporate governance principle states that,
the board of a listed entity should have a nomination committee (Hussain, Hussain &
Awais, 2015). This committee must consist with at least three members with the
majority of independent directors. Further, the committee must have independent
director as a chairperson. The committee must disclose the charter of the committee,
details of the committee members and the details of the meeting held within the
members and individual attendance details of each members (Carson, Fargher &
Zhang, 2016). Lastly, if the board does not have a nomination committee, then the
board need to disclose the facts of the planning and the policies that is board adopted
towards its succession issues. Also, need to ensure that the board must have the
appropriate balance of skill, experience, knowledge and diversity to enable to
discharge its responsibilities and duties effectively (Yazid & Wiyantoro, 2018).
As per the information provided by the auditor, the FFA does not have the
majority of the independent directors, as the one out of the three non-executive direct
is dependent named Kevin Oliver because he has 12% shareholding in FFA. The
total number of the board member is five including CEO and CFO along with the
three non-executive director and only two out of five is independent. Secondly, the
chairperson of the company is Mr Kevin Oliver, who is not an independent director
of the company as he has shareholding with the company (Jefrey, 2018). Lastly, the
one independent director named Jacqueline Grace who is an orthopaedic surgeon. As
per the requirement of the ASX the board of the directors must have the relevant
knowledge and experience if there is no nominated committee but Jacqueline is an