Analysis of Audit and Assurance Service in the KPMG Case Study

This report provides a comprehensive analysis of an audit and assurance service case study involving KPMG and Discovery Metals. It delves into the facts of the case, including the audit firm's advice on a business takeover deal and the subsequent financial losses suffered by shareholders. The report examines the level of assurance provided, the nature of audit evidence, and the remedies sought by regulatory agencies and company stakeholders. It also discusses the challenges and opportunities faced by audit firms in a post-Banking Royal Commission environment. The report further assesses whether the audit firm demonstrated reasonable care and skill, referencing relevant cases and auditing standards. Finally, it explores the procedures used by lawyers in presenting the case and the reasons for a significant settlement amount. The analysis highlights key aspects of audit quality, regulatory compliance, and the responsibilities of audit firms in providing accurate and reliable financial advice.