Audit and Assurance in Australia: AMP Limited Report Analysis

This report analyzes the audit and assurance practices of AMP Limited, an Australian financial services company. The report addresses two key questions: First, it identifies and describes four laws and regulations that affect AMP's operations, including SPS 510 Governance, SRS 533 Asset Allocation, SPS 231 Outsourcing, and CPS 234 Information Security. These regulations, set by APRA, ensure sound governance, asset allocation, outsourcing due diligence, and information security. Second, the report assesses AMP's compliance with Principle 4 of the ASX Corporate Governance Council's principles and recommendations. It concludes that AMP complies by having an independent audit committee overseeing financial reporting, adhering to a charter of independence, and disclosing relevant information in its annual report, including compliance with the Corporations Act 2001 and the issuance of a half-yearly non-audited financial report. The report is based on AMP's 2018 annual report and information available on the company's website.

Running head: AUDIT AND ASSURANCE IN AUSTRALIA
Audit and Assurance in Australia
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Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................2
References:.................................................................................................................................4

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Answer to question 1:
The laws or regulations that affects the AMP’s operations are;
a. “SPS 510 Governance”: The “prudential standards” ensure that AMP business
functions are administered effectively to make impartial business judgements.
b. “SRS 533 Asset Allocation”: The “reporting standard” assures that AMP follows
the requirement of APRA for strategic asset allocation.
c. “SPS 231 Outsourcing”: The “prudential standards” require AMP to assure that all
outsourcing arrangements is subject to appropriate due diligence (APRA 2020).
d. “CPS 234 Information Security”: This “prudential standard” assures that AMP
takes appropriate measures to be strong against information security accidents by
assuring information security against vulnerabilities.
Answer to question 2:
AMP complies with the “ASX Principle 4”, as it has audit committee that is
responsible for overseeing the financial reporting. Amp has seven members in its audit
committee and all are “non-executive” and “independent directors”. AMP audit committee
is chaired by the “independent director” that is not the chair of board (Asx.com.au 2020).
AMP audit committee has adopted a charter of independence which has disclosed the
relevant qualification as well as experience of its audit committee members. The charter
provides the disclosure regarding every reporting period and total number of times the
committee has met all through the period along with attendances of audit members.
The CEO of AMP in its report have stated that the company complies with the
“Corporation Act 2001” and has correctly maintained its financial statement to provide a true
and fair view of financial performance the company. As per “recommendation 4.3 of ASX
principle 4” AMP has also disclosed the procedure of verifying the integrity by issuing a

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half-yearly non-audited financial report. Therefore, the company has complied with
“Principle 4 of the ASX Corporate Governance Council’s corporate governance principles
and recommendations”.

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References:
Asx.com.au. (2020). Retrieved 9 January 2020, from
https://www.asx.com.au/asxpdf/20190320/pdf/443ml5qscx89b9.pdf
Asx.com.au. (2020). Retrieved 9 January 2020, from
https://www.asx.com.au/documents/regulation/cgc-principles-and-recommendations-fourth-
edn.pdf
Prudential and Reporting Standards for Superannuation | APRA. (2020). Retrieved 9 January
2020, from https://www.apra.gov.au/industries/33/standards

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