Analysis of South32 Ltd's Financial Structure and Audit Plan

Finance Assignment

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By student name
Professor
University
Date: 25 April 2018.
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Executive Summary
The given assignment has been completed with the help of Annual Report of the company. The
company, which is analysed here, is South32 Ltd, which is one of the listed companies on the
Australian Stock Exchange. The company’s financial structure is examined based on annual
relating to the year 2017. The analysis has been done on the concept of materiality and how the
same has been determined for the given company by the auditors, what is the concept of
materiality and what is the quantitative estimate for the given company. What are the different
standard to identify and assess the level of materiality. The various kind of notes and disclosure
attached with annual report has been studied and gave opinion on it in annual report. Apart from
all this preliminary analytical review has been analysed with the help of profit & loss account
and balance sheet of the company and based on various ratios. To establish an effective audit
plan the company has been also considering relevant assertion and risk assessment audit
procedure. In the 3rd section of the annual report, the cash flow statement of company has been
inspected to determine the what are the major cash receipt and payment items, what are the
major non cash item and their effect on financial statement and other significant financing and
investing activity. In addition to all this, the fundamental assumption of going concern
assumption has also been checked and audit report of company has been analysed to determine
major issue, if any.
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Contents
Section 1: Materiality concern of the entity................................................................................................4
Section 2: Preliminary analytical review of the company............................................................................6
Section 3: Review of the cash flow statement of the company...................................................................9
References.................................................................................................................................................11
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