Auditing and Assurance Services and Ethics

Question: Discuss about the Auditing and Assurance Services and Ethics. Answer: Audit Opinion types issued by Independent Auditor This part explains the audit opinion given by The Audit Committee of both the companies named as Bega Cheese Limited. Different auditors point similarities and differences out regarding the types of audit opinion for the year 2015 (Medibank.com.au 2016). Baga Cheese Limited Medibank The Audit Committee of Bega Cheese issued audit opinion, that is unmodified opinion (Begacheese.com.au 2016) The Audit Committee of Medibank issued audit opinion as unqualified opinion (Redmayne 2013). Auditor independence sets out APES 110 Code of Ethics for professional accountants (Begacheese.com.au 2016) Audit and Risk Committee provides non-executive review for viewing at the effectiveness of financial reporting at Medibank and related risk management framework (Simnett, Carson and Vanstraelen 2016) Board of Directors considered the position in alignment with Audit and Risk Committee for non-audit services (Begacheese.com.au 2016) It helps in assisting Board for carrying accounting as well as risk management compliance in meeting the financial reporting responsibilities (Medibank.com.au 2016). Bega Cheese Limited Medibank It is agreed with the audit opinion taken by the auditors of Bega Cheese Limited (Begacheese.com.au 2016) It is agreed with the audit opinion taken by the auditors of Medibank Limited (Medibank.com.au 2016). The Audit Committee oversees process of financial reporting, compliance of external audit as well as internal control function (Hardidge et al. 2013) Medibank has an internal audit function The main role of the auditors is to enhance independent objectives of audit and assurance in response with Audit and Risk Management Committee (Boticaà ¢Ã¢â€š ¬Ã‚ Redmayne 2013) The Audit Committee ensures the relationship between Bega Cheese as well as external auditors who are independent in nature (Begacheese.com.au 2016) Audit Committee mainly approves internal audit plan by using risk based approach and governance principles (Medibank.com.au 2016). Bega Cheese Limited Medibank From the independent audit report of Bega Cheese, it has been noticed that the company does not comply with ASA 700 rendering opinion and reporting financial report (Begacheese.com.au 2016) From the independent audit report of Medibank, it has been noticed that the company does not comply with ASA 700 rendering opinion and reporting financial report (Medibank.com.au 2016). It failed to address with ASA 700 guidelines depending upon auditor judgment for designing audit procedures for future analysis purpose (Begacheese.com.au 2016) Internal audit function reports has been provided to each Committee in line with Chief Financial Officer (Medibank.com.au 2016). Corporate Governance This part of the question explains the relation of corporate governance for both the companies, Bega Cheese Limited and Medibank. Bega Cheese Limited Medibank The Board formalizes with new or revised Corporate Governance Principles and Recommendations as contained in the third edition of ASX for the year 2015 (Begacheese.com.au 2016) Bega Cheese is committed towards achieving as well as maintaining highest standard of accountability and transparency in conducting its business operations (Begacheese.com.au 2016) The Board Commits with maximization of corporate performance for generating required level of shareholder values as well as financial returns. It helps in sustaining for growth as well as success for the company named Medibank (Medibank.com.au 2016). The Board formalizes with new or revised Corporate Governance Principles and Recommendations as contained in the third edition of ASX for the year 2015 (Medibank.com.au 2016). The Board has adopted corporate policies as well as practices for continuous growth as well as success in ongoing enhancement especially for the Bega Cheese shareholders (Begacheese.com.au 2016) Preparation of initial offering involving due diligence as well as completion of Prospectus (Medibank.com.au 2016). The Corporate Statement mainly outlines the corporate governance policies as well as practice as published under ASX Corporate Governance Council (Begacheese.com.au 2016) The Board places particular framework in order to govern Medibank such as internal controls as well as risk management process and corporate governance policies (Medibank.com.au 2016). Bega Cheese Limited Medibank Bega Cheese has an Audit Committee with correct composition (Begacheese.com.au 2016) Medibank has an Audit Committee with correct composition(Medibank.com.au 2016). Audit and Risk Committee comprises of: One Independent Director- Raelene Murphy One Non-Independent Director- Richard Parbery Audit and Risk Committee comprises of: Elizabeth Alexander (Chairman and Independent Non-Executive Director) George Savvides (Managing Director) Bega Cheese Limited Medibank The Audit Committee is beneficial to: The Auditor The Audit Committee provides services for internal and external audit with respect to current position The Company Connecting direct line of communication The Auditing Profession Compliance with the code of ethics The Society Helping potential capital investors The Audit Committee is beneficial to: The Auditor Accounting, risk reviews and audit The Company Managing enterprise-wise accounting as well as risk management strategies The Auditing Profession Finance function with required knowledge and skills The Society Interpretation of society expectation with the company standard Reference List Begacheese.com.au. (2016).Bega Cheese | Bega. Real Town. Real Cheese.. [online] Available at: https://www.begacheese.com.au [Accessed 14 Sep. 2016]. Boticaà ¢Ã¢â€š ¬Ã‚ Redmayne, N., 2013. Auditing and Assurance Services in Australia: An Integrated Approach. Pacific Accounting Review. Hardidge, D., Abeysekera, I., Chew, T.G., De Santi, R., Egan, T., Ghandar, A., Jakubicki, P., Lee, A., Luckins, J., Ridley, C. and Shying, M., 2013. A guide to understanding auditing and assurance: listed companies. Medibank.com.au. (2016).Australia's Leading Health Insurance Provider | Medibank. [online] Available at: https://www.medibank.com.au [Accessed 14 Sep. 2016]. Redmayne, N.B., 2013. Auditing and Assurance Services and Ethics in Australia: An Integrated Approach. Journal of Accounting Organizational Change. Simnett, R., Carson, E. and Vanstraelen, A., 2016. International Archival Auditing and Assurance Research: Trends, Methodological Issues and Opportunities. Auditing: A Journal of Practice and Theory.