Comprehensive Auditing Report: Brambles Limited Financial Analysis

This auditing report provides an in-depth analysis of Brambles Limited's financial performance and operational risks. The report begins with an executive summary outlining the company's operational framework and then delves into the risk of material misstatement at both the financial and assertion levels. It examines the integrity of management, management's experience and knowledge, unusual pressures on management, and the nature of the business. The report also analyzes key financial ratios, including operating cash flow, current ratio, and debt-to-equity, assessing their impact on the risk of material misstatement. The report concludes with recommendations for improving investing activities and mitigating identified risks. The report references several academic sources and online resources to support its analysis. This report is designed to provide a comprehensive understanding of Brambles Limited's financial health and the associated auditing considerations.

AUDITING

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
PART 2............................................................................................................................................1
Risk of material misstatement at financial levels...................................................................1
PART 3............................................................................................................................................3
Risk of material misstatement at Assertion level...................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

EXECUTIVE SUMMARY
A firm is consisting of various operational aspects which will be useful for managing the
activities as well as making appropriate analysis on transactions made in a year. In the present
report, there will be discussions based on operational frameworks of Brambles Limited which
deals in supply logistic group which are specialized in pooling of unit-load equipment. However,
there will be consideration of materiality of organisation at Financial as well as at Assertion
level. However, there will be influences of various information listed in annual report of
organisation on which determination of all factors will bring suitable development in operational
practices.
PART 2
Risk of material misstatement at financial levels
It is mainly known as material risk which can be identified in misleading in financial
statements. Thus, these are risks which have been addressed by accounting professionals or
auditors with respect to have appropriate information regarding data base disclosed by an entity
He, Zeadally & Wu, (2018). Importance of such aspects mainly stated in ascertaining the risks as
well as manipulation of operations.
Integrity of management
Management of all operations as well as analysing integrity of investors in making
investment aand risks which are indulged with this are main aspects which are needed to be
addressed and administered. It will be appropriate in determining the frauds as well as analysing
bottom line signal for employees in a positive manner (Brambles Limited, 2017). It will suggest
most appropriate and acceptable behaviour which will lead firm in attaining success Sookhak &
et.al., (2017). Thus, in relation with analysing operational performance of Brambles Limited, the
company is highly committed in relation with disclosing clear and transparent information
regrading financial health of business.
Management experience, changes and knowledge within a period
In terms of analysing the managerial experiences which determines that there will be
determination of adequate information and operational management in supply chain as well as
retail management Shen & et.al., (2017). Thus, Brambles Limited has been focusing on various
operations and have several planned projects based on improving operational activities and
strengthening the network. Professionals have been approached towards enhancing platform for
1

better quality as well as differentiating value which enhances service offerings. As per
considering group wise offerings business has been approached towards improving operational
efficiency. Executing adequate allocation of capital in each activity which comprised on
increasing the cash flows in industry Simeon, (2018). Tend to have adequate innovations and
operational development which will be helpful in leading firm on right locations Hamza & Al
Hussein, (2018). Along with this, as per considering social responsibilities of the organisation on
which operational increment has been based on long term value creation and appropriate
dividend policy as well as payments.
Unusual pressure on management
As per analysing operational framework and the activities which have been performed
by Brambles Limited which is relevant with improving logistic supplies in organisation Demb &
et.al., (2017). Therefore, management of all operations will be adequate in meeting the goals at
right time as well as managing financial needs of business. It is associated with disclosure of
fruitful information and analysing the requirements of firm in meeting target capital. In analysing
the inherent risk in accounting for pooling equipment there has been comparatively higher
volume of assets which creates obstacles and makes adequate increment in professional’s
practices.
Nature of business in entity
The business has been engaged in operating activities relevant with estimation of
professionals in industry. Brambles Limited has been operating in supplying logistics and pooled
equipment Alles & et.al., (2018). Thus, the operational criteria and activities will be adequate in
meeting stability for capital generation. Motive of every industry is based on improving
operational criteria and lead the unit in retaining higher consumer backups Groomer & Murthy,
(2018).
Factors influence operations in industry
There can be various factors or elements which influences operational viabilities and
activities of firm. Considering the operating functions of Brambles Limited which insists that
there are various areas on which business performs Chan & Vasarhelyi, (2018). There can be
influences due to improper allocation of capital, sudden changes in company’s policies, reforms
in economic plans and governmental changes in taxation. Thus, these can affect operations of the
2

business in performing adequately. Along with this, there can be various duties and
responsibilities of auditors in respect with financial reporting of organisation.
Main motive of professionals is for disclosing the authentic and reliable information among
stakeholders which will assist them in investment decisions. Reports are needed to be prepared
with considering all transactions made in a year. It will be based on valid details and considering
all legal invoices Reiman & Viitanen, (2017). It helps in reducing chances of fraud and unlawful
activities in firm. Thus, as per analysing operational limitations of professionals there will be
sound increment and development of various policies which will lead the organisation in
attaining targeted goals. Accountants will be bound for controlling errors and misleading
information regarding operational activities performed by the professionals in due course of
action.
PART 3
Risk of material misstatement at Assertion level
Considering concept of material misstatement in “Assertion level” which has been
considered as fraud or errors stated in reporting. Thus, it is required that Auditing of firm’s
operations are needed to be done in a manner that it would not affect any industrial function.
Thus, record of each transaction or entries with the influences of proper operational analysis and
determination of all risks associated Byrnes & et.al., (2018). Operational motive of business has
been concerned with motive of assessing all operations as well as managing issues which will
resolve obstacles. Thus, concreteness of material information, which have been used to analyse
actual feasibility of business. Similarly, it will help in determining goals of organisation.
However as per below listed table there has been various questions and issues which can
be analysed and addressed such as:
Operating cash flow-
2018- 0.84
2017- 0.57
2016- 0.70
Account balance in Significant risk of material
misstatement
The operating cash flow has been obtained
through paying off all operational expenses.
Brambles Limited has constantly rising cash
flow from operations as presented in each
3

discloser Tian & et.al., (2017).
Invalid key assertion at risk Accuracy in outcomes can be terms as a valid
point for making the disclosure of this account
information.
Relevant substantive audit procedure to
analyse the assertion at risk.
There has been existence of various factors and
elements which were being addressed such as
inventory, variable or fixed expenses etc.
Relevant practical internal control which
would mitigate risk in assertion of risk.
To overcome with risk there can be
completeness of all operational requirements
which in turn will be useful for effective
management of operations.
Current ratio
2018- 0.93
2017- 0.74
2016- 0.88
Account balance in Significant risk of material
misstatement
The idol ratio is 2:1 on which Brambles
Limited has comparatively appropriate
outcomes. It is required that, firm must make
proper increment in assets as compared with
debts Groomer & Murthy, (2018).
Invalid key assertion at risk There can be risks relevant with improper
occurrence or transitional gap.
Relevant substantive audit procedure to
analyse the assertion at risk.
Existence of details in the analysis is most
important for addressing issues.
Relevant practical internal control which
would mitigate risk in assertion of risk.
It is required to manage the debts made by firm
in a year which will bring suitable control on
operations.
4

Debt to equity
2018- 1.47
2017- 1.72
2016- 1.62
Account balance in Significant risk of material
misstatement
In analysing the ratio there has been reduction
in the current year. It addresses that the
relatively equity from investors and debts are
able to finance the assets in organisation.
Reduction in investment will cause impacts on
reducing ratios (Analytical Procedures, 2018).
Invalid key assertion at risk The right to make operational investment are
the main factor that an individual can do.
Therefore, poor investment and capital stability
will be immersing risk to Brambles Limited.
Relevant substantive audit procedure to
analyse the assertion at risk.
It impacts of reducing in value of firm in
capital markets Chan & Vasarhelyi, (2018).
Relevant practical internal control which
would mitigate risk in assertion of risk.
To mitigate risk there will be requirement of
developing accurate dividend policies as well
as securing investor’s fund will improve this
ratio
CONCLUSION
On the basis of above report it can be said that, auditing of an organisation will be associated
with various risks. There can be chances of losing confidential data and information regarding
performance of business. Brambles Limited had been addressed on basis of its performance and
nature of operations made by professionals in a due period. Further, there have been various risks
on the basis of financial and Assertion level were addressed and analysed as per making clear
analysis of obstacles associated in tasks. Further, to mitigate the risks associated with various
5

accounts has been addressed here such as operating cash flow, debt to equity and current ratios.
Therefore, it indicates rise in the ratio or balance of each accounts in the current year instead of
debt to equity. In addition, Professionals has been suggested for making necessary improvements
in investing activities.
6

REFERENCES
Books and Journals
Alles, M. & et.al., (2018). Continuous monitoring of business process controls: A pilot
implementation of a continuous auditing system at Siemens. In Continuous Auditing:
Theory and Application (pp. 219-246). Emerald Publishing Limited.
Byrnes, A. & et.al., (2018). Enhanced Recovery After Surgery as an auditing framework for
identifying improvements to perioperative nutrition care of older surgical
patients. European journal of clinical nutrition. 72(6). 913.
Chan, D. Y., & Vasarhelyi, M. A. (2018). Innovation and practice of continuous auditing.
In Continuous Auditing: Theory and Application (pp. 271-283). Emerald Publishing
Limited.
Demb, J. & et.al., (2017). Optimizing radiation doses for computed tomography across
institutions: dose auditing and best practices. JAMA internal medicine. 177(6). 810-817.
Groomer, S. M., & Murthy, U. S. (2018). Continuous auditing of database applications: An
embedded audit module approach. In Continuous Auditing: Theory and Application(pp.
105-124). Emerald Publishing Limited.
Hamza, A., & Al Hussein, F. (2018). Auditing the prevalence and effects of smoking to lead a
successful smoking cessation campaign. Auditing. 7(1). 39-43.
He, D., Zeadally, S., & Wu, L. (2018). Certificateless public auditing scheme for cloud-assisted
wireless body area networks. IEEE Systems Journal. 12(1). 64-73.
Reiman, T., & Viitanen, K. (2017). Safety culture assurance by auditing in a nuclear power plant
construction project. In 9th International Conference on the Prevention of Accidents at
Work, WOS 2017 (pp. 161-170). CRC Press.
Shen, J. & et.al., (2017). An efficient public auditing protocol with novel dynamic structure for
cloud data. IEEE Transactions on Information Forensics and Security. 12(10). 2402-
2415.
Simeon, E. D. S. E. I. (2018). Auditing and Fraud Control in Corporate
Organisations. Auditing. 9(8).
Sookhak, M. & et.al., (2017). Dynamic remote data auditing for securing big data storage in
cloud computing. Information Sciences. 380. 101-116.
Tian, H. & et.al., (2017). Dynamic-hash-table based public auditing for secure cloud
storage. IEEE Transactions on Services Computing. 10(5). 701-714.
Online
7

Analytical Procedures. 2018. [Online]. Available through :<
https://www.accaglobal.com/in/en/student/exam-support-resources/professional-exams-
study-resources/p7/technical-articles/analytical-procedures.html >.
Brambles Limited. 2017. [Online]. Available through :<
https://www.brambles.com/Content/cms/pdf/2018/Brambles_2018_Annual_Report_WE
B_280818.pdf >.
8