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Auditing Assignment 2: KPMG

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Leigh Donoghue

on 14 April 2015

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Transcript of Auditing Assignment 2: KPMG

What Services Do KPMG Provide?
- Corporate Tax

- Research and Development Incentives

- Tax dispute resolution
Auditing Assignment 2: KPMG
By Leigh Donoghue and Raymond Nixon
- KPMG are a Global financial services provider
Who are KPMG?
Opening Image: http://www.contabilidade-financeira.com/2011/11/olympus-segundo-kpmg.html
KPMG Australia
Two part presentation introducing you to KPMG Australia in specific relation to assurance services
Part One
The Firm
Part Two
The Client
Types of clients looking to utilise the audit of financial statements services
Legislation including the
Corporations Act 2001
states that the financial reports of reporting entities (company's listed on the Australian Stock Exchange) must be subjected to an audit by a suitable assurance practitioner.
Such as
KPMG Australia
Why clients would benefit from suitable assurance processes
The audit or assurance process
To re-enforce and consolidate the value of the information contained in the financial reports. Allows reliance on the information to hold an increased credibility because of the examination of the financial reports by an independent third party.
Agency Theory
Investors input resources.
Managers utilise resources to maximise wealth for shareholders (investors).
Periodic reports by managers in accordance with the AASB allowing shareholders to view the effectiveness of the manager's actions.
Assurance processes ensure bias or conflict of interest is kept to a minimum.
Management responsible for Financial Reports
Information Hypothesis
Quality of information
Key in enabling investors to assess risk on investments (equity capital).
Strive for the lowest cost of receiving finance from lending institutions (debt capital).
Aid management in making decisions on internal processes, identifying errors and poor procedures and the motivation of employees.
KPMG Australia as an assurance practitioner needs to ensure the following before engagement with a client may be accepted
Clients are not occupied by management that is lacking in integrity.
Business Reputation
Related Parties
Internal Governance
Business Practices
KPMG Australia is able to provide an independent reliable service to the client by knowing and understanding
Client business practices.
Competence and commitment to have the time and resources to complete the engagement.
Favorable review of previous financial reports and tax returns
Favorable inquires of outside parties in the line of creditors, legal advisers and suppliers.
Ensure that the engagement wouldn't compromise the (code of ethics for the professional accountants).
Determine the weight of extent the engagement would expose KPMG Australia to unusual risk.
Consultation with the previous assurance provider.
Insurance Hypothesis
The auditor may be held liable if after the assurance process the client goes into liquidation and/or is unable to pay debts.
KPMG Australia values its reputation to an extreme degree and will ensure to all possibilities that its reputation is to stay intact.
- Financial Statement Audit

- Regulatory Audit

- Audit Data & Analytics
- Employ 5000 staff in Australia alone!
- Specialise in a variety of financial services including Taxation, Superannuation and Auditing
We're here to lend a hand
- Management Consulting

- Risk Consulting

- Superannuation
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Full transcript