Wesfarmers Ltd: Auditor's Responsibility and Annual Report Analysis

HI6026 Audit, Assurance and Compliance
Trimester 2 2018
Individual Assignment

Wesfarmers Ltd
Executive summary
The auditor’s responsibility has a very important place in the corporate world because it
facilitates in the fulfilment of effective corporate governance and ethical mechanisms. With
the help of this report, the annual report of Wesfarmers Ltd has been selected. The
company has been listed on the Australian Stock Exchange and this report highlights the
auditor’s role in a proper way for better understanding. Nevertheless, this report starts with
the independence of auditors, audit committee, and the key audit matters. Lastly, the entire
report has been diversified on several aspects that has necessitated the relevance of audit
opinion.
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Wesfarmers Ltd
Contents
Introduction...........................................................................................................................................4
Adherence with independent requirements.........................................................................................5
Non-audit services.................................................................................................................................5
Evaluation of the remuneration of auditors..........................................................................................6
Audit Committee...................................................................................................................................6
Amount of non-audit services...............................................................................................................7
Key audit matters..................................................................................................................................7
The contrast between the management’s and auditors responsibilities...............................................8
Material subsequent events..................................................................................................................8
Efficacy of the auditor’s report..............................................................................................................9
Under-reporting or missing material information?.............................................................................10
Questions that can be asked to the auditor........................................................................................11
Conclusion...........................................................................................................................................12
References...........................................................................................................................................13
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Wesfarmers Ltd
Introduction
In relation to an organization’s performance, there is a requirement that auditors must
focus on internal control mechanisms so that risks of material misstatements can be
identified. In relation to Wesfarmers, the company has been capable of reflecting a true and
fair view of its financial performance. Audit functioning is the prime reason why this has
been achieved. Moreover, since Wesfarmers has been able to comply with necessary
statutory requirements like the Corporations Act 2001, the importance of auditors in
verifying the same can also be observed through this research.
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