Audit, Assurance and Compliance - Woolworths Limited

Running head: AUDIT, ASSURANCE AND COMPLIANCE
Audit, Assurance and Compliance
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1AUDIT, ASSURANCE AND COMPLIANCE
Executive Summary:
For this current report, Woolworths Limited is selected as the organisation, which is a
leading Australian retail firm having significant interest in Australia and New Zealand. It is the
second biggest firm in terms of revenue placed after Wesfarmers and it is popular for its liquor,
gaming poker machine and hotels in the nation. Upon evaluating its financial position, it has
been found that the organisation is struggling to maintain its competitive position in the market.
The board is responsible for mitigating the risks related to financial aspects after it approves the
treasury policies in order to govern the financial risk management related to the group. Some of
the primary steps under this kind of mitigation could be detected from the financial risks like
interest rate, liquidity and foreign currency risks. A turnaround plan is inherent in the
organisation, which is relevant to general merchandise and it is monitored regularly in order to
estimate the realised sale of petrol business for improving the capital position.

2AUDIT, ASSURANCE AND COMPLIANCE
Table of Contents
Introduction:....................................................................................................................................3
Implication of ASX Corporate Governance Principles in the context of Woolworths Limited:.....3
Risk assessment of Woolworths Limited:.......................................................................................5
Income statement and balance sheet statement ratios and development of common size financial
statements:.......................................................................................................................................7
Prospective steps for minimising risk:...........................................................................................15
Conclusion:....................................................................................................................................17
References:....................................................................................................................................18

3AUDIT, ASSURANCE AND COMPLIANCE
Introduction:
For this current report, Woolworths Limited is selected as the organisation, which is a
leading Australian retail firm having significant interest in Australia and New Zealand. It is the
second biggest firm in terms of revenue placed after Wesfarmers and it is popular for its liquor,
gaming poker machine and hotels in the nation. The few significant strategies of the organisation
include developing a loyal customer base along with forming a store-led team and culture. The
identification of such priorities is made with developing sustainable momentum of sales and
drinks business for delivering greater value to the shareholders. Woolworths is one of the leading
retailers due to the systems excellence and the approach of end-to-end process
(Woolworthsgroup.com.au 2018).
The report would address the various implications of ASX principles of corporate
governance in the context of Woolworths Limited. The pertinent scope of discussion has taken
into consideration the audit risks of the organisation and potential steps that could be adopted for
minimising such issues. Finally, the report would shed light on analysing the income statement
and balance sheet statement ratios.
Implication of ASX Corporate Governance Principles in the context of Woolworths
Limited:
It has been identified that adequate significance is provided to corporate governance on
the part of Woolworths Limited and thus, significant contributions are made in order to ensure
long-term value of the shareholders. The management has assured that Woolworths adheres to
all the principles and recommendations of the corporate governance council of ASX. The board