Social Ethical Accounting and Auditing †Free Samples to Students

Question: Discuss about the Social Ethical Accounting and Auditing. Answer: Introduction This study deals with a company named as Telstra Corporation Limited where the company is an early adopter of enhanced auditor reports (Telstra.com, 2017). In this given assignment, proper emphasis has been given on analyzing the changes that are present to auditor reporting that is introduced by the International Auditing and Assurance Standards Board that commences in Australia from 15th of December 2016. The study explains difference between new auditing standard and old auditing standard based on the standard such as ASA 700, ASA 701, ASA 570, ASA 705, ASA 706 and ASA 720. The current segment explains the new audit rules that promise greater transparency as well as insights and clarity for the investors and shareholders. More than 111 countries had decided to adopt the new audit standard from IASB that is designed to make auditor report as it is more informative, revealing and transparent. The changes that are made in the new audit report will have huge impact on listed companies where all the auditors reports are affected (William, Glover Prawitt, 2016). Among the Big 4 Audit Firm, KPMG was the early adopters of enhanced reporting in Australia that is now issued enhanced auditor reports for a second reporting period. The first part discusses the changes in new auditor requirements in comparison with previous audit report for the company Telstra Corporation Limited. The company is listed in Australian Stock Exchange and largest telecommunications and Media Company that builds as well as operates telecommunication networks, mobile internet access, and entertainment products and markets voice. The next segment explains how the new auditor reporting will enhance the qualitative characteristics of financial information as mentioned in SAC 3 (Zadek, Evans Pruzan, 2013). Key audit matters- The new auditing standard (ASA 701) is effective for audits of AFS for periods that end on or after 15th December 2016. The new audit standard includes a separate section in the auditors account under the title Key audit matter as given in the requirements ASA 701 (Hribar, Kravet Wilson, 2014). On the contrary, the previous audit standard that is useful for audits of AFS for specified period where the key audit matters are not specifically required to be reported on separate part of the audit report. ASA 705 (Modification to the Opinion in the Independent Auditors Report) Basis of Opinion- In the new auditing standard, the basis of opinion is included for all types of auditors opinions that come under modified opinion (Knechel Salterio, 2016). On the other hand, in the previous auditing standard, the basis of opinion section is not included for all types of auditors opinion but for modified opinions only. Auditors opinion- In the new auditing standard, the section explains at the top just after the addressee. This is expressed before the basis of opinion unlike old auditor reporting (Porter, Simon Hatherly, 2014). As far as Opinion section is concerned, it identifies the entity where AFS has been audited through stating the fact where AFS has been audited unless a disclaimer of opinion is expressed and refers to the ASA 705. This section identifies the title of each statement that comprises with AFS and refers to the notes that takes into consideration summary of significant accounting policies and specifies the data as covered by the AFS (Louwers et al., 2013). In the previous audit report, the section is included within the body of the audit report as well as is expressed after the basis of opinion or below Auditors responsibility section especially in case of unmodified opinion. In that case, the requirements were not explicitly need as mentioned in the opinion section. Other Reporting Responsibilities- The new audit standard explains the section where there are no differences noted in the section and remains before the auditors signature. The previous audit standard explains the section when there is no difference in the section and remains before the auditors signature (Eilifsen et al., 2013). ASA 700 (Forming an Opinion and Reporting on a Financial Report) Introductory paragraph- In the new auditing standard, there is no introductory paragraph rather it explains succeeding Audit Opinion section (Power Gendron, 2015). In the old audit report, introduction paragraph is included and then it has a separate section that explains Audit Opinion. Other Information- The new audit standard explains the section where it reports in accordance with the requirements of ASA 720 under the heading Other Information. The previous audit standard explains that was not explicitly required to be positioned under the old ASA 700 where section reports in agreement with the requirements of ASA 720. Responsibilities for financial statements- The new audit standard explains the section that has now been positioned below on the audit report that adds value to the users of financial statements. The previous audit standard explains the section that was positioned at the topic of the audit report and not explicitly that required for communicating in the section of audit report where the management is responsible for assessing the ability for continuing as a going concern and elsewhere in the audit report (Hayes, Wallage Gortemaker, 2014). Auditors Responsibilities- The new audit standard explains the section that has been positioned within the body of the audit report when it adds values to users of financial statements (Furnham Gunter, 2015). The previous audit standard explains the section that was positioned below the Management Responsibility section just before the Opinion Section. Name of the Engagement Partner- The new audit standard section that explains name of the appointment associate that is explicitly that is included in the audit report for the listed entities when there is significant personal security threat to the engagement partner (Zadek, Evans Pruzan, 2013). The previous audit standard explains the name of the appointment associate that was specifically required and included in the audit report. New Audit Report- The auditors report will explain the results at the time of conducting audit process. Shareholder as well as monetary declaration usershas asked for educational auditors report in exacting for examiner to offer more pertinent information to financial users (De Santis, 2016). The new revised audit report will enhance communication between examiner and shareholder and charged with business supremacy. The new revised audit report will increases user self-assurance in audit reports as well as financial statements. The new revised audit report will bring transparency in information as well as audit quality and improved information value (Cannon Bedard, 2016). The new revised audit report will increases concentration by administration and monetary declaration preparers to revelation referencing the assessor account. The new revised audit report will renew assessor focus on matters to be reported that could consequence in an augment in specialized uncertainty (Zadek, Evans Pruzan, 2013). The new revised audit report will enhance monetary coverage in the community attention Telstra Corporation Limited Telstra Corporation Limited is committed towards excellence in corporate governance as well as transparency and accountability (Telstra.com, 2017). The company engages in protecting the interests of the shareholders as well as other stakeholders. Responsibilities of the Board oversee the external audit activities as well as monitor internal audit activities and reporting systems. For the financial year 2016, the Audit Risk Committee was offer with usual official, written information detailing the nature and amount of any non-audit services rendered by KPMG and a clarification of how the stipulation of those non-audit services was well-suited with assessor autonomy. Information of amounts paid or owed to KPMG for non-audit services offer for the financial year 2016 are disclosed in Notes to the Financial Statements in the annual report of Telstra Corporation Limited. The company internal audit behavior is undertaken by the company Internal Audit, Telstras committed internal review pu rpose. Addition to that, the role of Telstra Corporation Limited Internal Audit is to give the Board and administration with self-governing and purpose declaration on the efficiency of the supremacy, risk administration and internal manage procedure (Telstra.com, 2017). In order to maintain the essential self-government it desires to take out its position, he company Internal Audit has no straight prepared accountability or power over any of the trade or risk administration behavior. Addition to that, efficient accountability for Telstra Corporation Limited Internal Audit resides with the executive Group Internal examination, where meeting is accepted by the Board (Truong, 2017). Furthermore, the executive Group Internal inspection reports to the Audit Risk Committee and the Chief Financial Officer. It is all about the Group Internal Audit has full and unobstructed admittance to all of the arrangement, records, physical properties and human resources for carrying out the activities. Therefore, the work of company Internal Audit is direct by the global specialized perform structure provided by the Institute of Internal Auditors. The responsibility of Audit Risk Committee for monitoring the company the Internal Audits behavior and presentation that includes auditor independence The Statement may be mentioned as Statement of Accounting Concepts (SAC 3) that explains Qualitative Characteristics of Financial Information (Zadek, Evans Pruzan, 2013). The Statement relate to each of the coverage unit in relative to the first coverage period and subsequent reporting periods. In the new auditor report Statement of Accounting concepts, SA2, it explains Objectives of General Purpose Financial Reporting recognize the objective of general purpose of monetary reporting that is used for revelation of facts and helpful to used for making as well as evaluating verdict on matters connecting to allotment of scarce possessions. Addition to that, it is time when general purpose of financial reporting meets the objective where preparers of such reports that discharges their responsibility of the users. Therefore, the purpose of Statement that identifies where it poses the qualitative characteristics where the fiscal information should be enhanced if it is to serve the particul ar purpose (Boone et al., 2017). The new and revised auditor reporting standards helps in enhancing the qualitative characteristics of financial information that is required in an audit. The main objective of the new audit report is to enhance the communication value as well as relevance as shown in the new auditor report where it is the revision to the ISA that is used for addressing the structure and content. In the revised auditing report, there has been modification in the IASB report that help in accommodating with the evolved national financial reporting regimes at the time communicating the common and essential content. The revised audit report considered as the key deliverable that address the main output of the audit process. Addition to that, the new auditing standard has been made as there was a need for new and revised Auditor Reporting Standards that will help in increasing the level of confidence in the audit as well as financial statements that meets the need of public interest in some form or other. It was believed by IASSB that increased level of transparency as well as enhanced informational value will add value to the new auditor report and changes to the auditor report has benefited in many ways. There are various benefits present in the new auditor report that enhances the qualitative characteristics of financial information and these are as follows: Enhanced Communication- The new and revised auditing standards aims at enhancing the communication between the auditors as well as investors that aligns with the governance changes to some extent Increased attention- The new and revised auditing standards is beneficial as it increased the attention by the management as well as those who are un charge with governance such as Audit Committee to the disclosures of financial statements where reference are made in the revised audit report. Renewed focus of the auditor- The new and revised auditing standards is beneficial as it renew focus of the auditor where matters need to be reported that results in an increase in professional skepticism. There are several effects in the financial reporting process after revising the auditing standards as it improves or enhances in the qualitative characteristics of financial information. The enhancements to the auditor report aims at building upon the underlying concepts of ISA audit where it address the fact on how risk-based audit is performed as well as need to be communicated with those who are charged with governance. In addition, the changes to the ISA do not change the underlying work effort but focus mainly on the increased transparency regarding the audit that was performed. While examiner interactions in the auditors statement are predictable to be entity-specific in order to be revealing to users, it remains the accountability of administration, with the oversight of those charged with domination, to converse applicable information to users about the unit and its fiscal presentation, as well as providing sufficient disclosure in agreement with the appropriate financial rep orting structure. Conclusion At the end of the study, it is concluded that Telstra Corporation Limited is an Australian listed company that is an early adopters of enhanced auditors reports. KPMG is among the Big 4 audit firm that is the first early adopters of improved auditor reporting in and across Australia. Addition to that, it is now issued improved auditors information for a subsequent coverage time, where the KPMG partners, Carolyn Ralph and Cameron Slapp, has a talk with CPA Australia about their knowledge of applying the innovative requirements. Furthermore, this podcast discover why KPMG select to early adopt, whether they have establish the original approach helpful, how time consuming drafting key audit matters has really been and whether saver had taken into consideration. Therefore, it leads into the first obligatory coverage period end, where the audit firm named as KPMG that give tips on completion will help other assessor, who are apply the new necessities for the first time, arrange for the al ter the techniques in the most appropriate way. The International Auditing and Assurance Standards Board (IAASB) Auditor Reporting page is the basis for tools and possessions to endorse consciousness, sympathetic and effectual completion of the new and revised Auditor Reporting principles. In addition, the new and revised Auditor Reporting standards are intended to develop auditors information for shareholder as well as users of monetary declaration. Reference List Acito, A. A., Hogan, C. E., Imdieke, A. J. (2014). 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