Financial Analysis Report: ASA 701 Application in Telecom Sector

This report provides a financial analysis of ASA 701, focusing on its application within the telecommunications industry. It examines the standard's requirements for communicating key audit matters in independent auditor's reports, emphasizing their significance for investors and the importance of transparency. The report delves into the analysis of two major companies, Telstra Corporation and TPG Telecom Limited, highlighting how they address key audit matters such as revenue recognition, treatment of goodwill, and IT automation. The analysis includes extracts from their annual reports, demonstrating how auditors comply with the standards and make appropriate disclosures. The report emphasizes the importance of these disclosures for maintaining the going concern ability of the company and ensuring ethical financial reporting. This report underscores the practical implications of ASA 701 in the telecom sector, helping users understand the practical application of financial reporting standards.