This report presents an audit analysis of Whitehaven Coal, focusing on audit materiality, financial ratios, cash flow, and the audit opinion. The assignment begins by defining materiality according to ASA 320, setting a benchmark of 0.5% of revenue ($11,287,230) and outlining audit procedures for specific financial statement disclosures, such as trade receivables, payables, and refinancing arrangements. The report then conducts a preliminary analytical review using profitability, coverage, liquidity, solvency, and cash conversion cycle ratios from 2015-2018, identifying trends and providing assertions and audit procedures for key areas like salaries and wages, depreciation, revenue, and inventory. A cash flow analysis highlights primary cash receipts and payments, with no going concern risk evident. The report also examines the auditor's unmodified opinion, key audit matters (impairment assessment and mine rehabilitation), and compliance with regulations. The analysis demonstrates a high growth in revenue, rising margins, improved interest coverage, and stable solvency ratios for Whitehaven Coal. This report provides a comprehensive overview of the audit process and the financial health of Whitehaven Coal.
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