Research Assessment
Research Assessment:
Download
a company annual report which is listed in ASX and must be present in ASX
S&P 300 index, along with this annual report, student should download
corporate statement of same company.
Structure of your research report:
1.
Executive
Summary of
the assessment
2.
Focus
in each headline the implication of ASX
Corporate Governance Principles
from
your selected company (reference link B). Conceptualize and explain how to your
selected company implements ASX CGC principles (read carefully from reference
link A.3 and A.4 to follow)
3. Risk assessment (When
performing an audit, you use risk assessment procedures to assess the risk that material misstatement exists. This step is
very important because the whole point of a financial statement audit is
finding out if the financial statements are materially correct. How exactly do
you assess audit risk?) There are various steps of risk assessment procedures,
but your report will focus mainly:
Recognizing the nature of the company, what’s the company’s market overview? Who (if anyone) regulates the
client? What’s the company’s business strategy? Computation
of income statement and balance sheet ratio, and Development of common-size
financial statements and focus on relevant audit risk and potential steps to
reduce risk (reference link C).
Additional Resources Reference link:
A.
3.http://www.orionequities.com.au/sites/default/files/20171018%20OEQ%20ASX %20Corporate%20Governance%20Statement%20-%202017.pdf
4.https://www.transurban.com.au/content/dam/transurban-pdfs/02/corporate-g overnance/Corporate_Governance_Statement.pdf
B. ASX CGS Principles:
The
Principles and Recommendations are structured around, and seek to promote, 8
central principles:
1. Lay solid foundations for
management and oversight: Your selected company should establish and disclose the
respective roles and responsibilities of its board and management and how their
performance is monitored and evaluated.
2. Structure the board to add value: Your
selected company should have a board of an
appropriate size, composition, skills and commitment to enable it to discharge
its duties effectively.
3. Act ethically and responsibly: Your
selected company should act ethically and
responsibly.
4. Safeguard integrity in corporate
reporting: Your selected company should have formal and rigorous processes that
independently verify and safeguard the integrity of its corporate reporting.
5. Make timely and balanced disclosure:
Your selected company should make timely
and balanced disclosure of all matters concerning it that a reasonable
person would expect to have a material effect on the price or value of its securities.
6. Respect the rights of security
holders: Your selected company should respect the rights of its security holders by
providing them with appropriate information and facilities to allow them to
exercise those rights effectively.
7. Recognise and manage risk: Your
selected company should establish a sound risk management framework and periodically review the effectiveness of
that framework.
8. Remunerate fairly and responsibly: Your
selected company should pay director remuneration
sufficient to attract and retain high quality directors and design its
executive remuneration to attract, retain and motivate high quality senior
executives and to align their interests with the creation of value for security
holders
C. Risk Assessment
2.
Assessing
Risk with Analytical Procedures: Do Systems-Thinking Tools Help
Auditors
Focus on Diagnostic Patterns?O'Donnell, Ed; Perkins, Jon
D. Auditing;
Sarasota Vol. 30, Issue. 4, (Nov 2011): 273-283.
3.https://auditinghelp.com/identifying-and-assessing-the-risks-of-material-misstate
ment-through-understanding-the-entity-and-its-environment-13914
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