Advanced Accounting Management: Fortescue Metals Group Audit Report

This report provides a comprehensive audit analysis of Fortescue Metals Group (FMG), a major iron ore producer. It begins with an executive summary and table of contents, followed by an introduction to FMG, highlighting its industry position and operations. The analysis identifies key business risks, including climate-related risks, credit risk, and market risk, explaining their potential impact. Analytical procedures, primarily ratio analysis (liquidity, profitability, and solvency ratios), are performed to assess FMG's financial performance, with detailed explanations of the ratio calculations and their implications. The impact of these analytical procedures on audit planning is discussed, emphasizing the need to address declining cash flow, profitability, and rising costs. Finally, the report examines specific financial statement items (revenue, expenses, assets, and liabilities), outlining key assertions at risk and proposing relevant audit procedures to mitigate those risks, such as vouching, verification, and reviewing documentation. The report concludes with a call to action to check the provided report for a detailed analysis.