Auditing Standards Accounting, Finance, SPSS Thesis Proposal (Thesis Proposal Sample)

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Auditing Review of Aurizon Holdings Limited Based on ASA 701
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Executive summary
ASA 701 is an auditing standard that succeeded ASA 450. It was developed to address shareholders’ interests such as the acquisition of more information on the companies they invest in and earlier warnings of potential issues that may exist with respect with an entities ability to continues as a going concern. ASA 701 includes the standards in the earlier auditing standards. Additionally, it includes areas of risk misstatement due to changes in economic, accounting, regulatory, industry among other developments. Aurizon Holding Limited was evaluated on the basis of ASA 701 and its risk misstatements assessed. They include recognition of access revenue, implementation of a new revenue accounting policy due to the adoption of AASB 15, and Recoverability of assets (including Bulk East and Western Australia (WA) Cash Generating Units (CGUs) and Rollingstock). The usefulness of ASA 701 in informing shareholders was outlined and recommendations made.
Table of Contents TOC \o "1-3" \h \z \u Executive summary PAGEREF _Toc51143761 \h 2General Purpose Financial Reporting PAGEREF _Toc51143762 \h 4ASA 701 Auditing Standard PAGEREF _Toc51143763 \h 4Areas of higher assessed risk of material misstatement, or significant risks identified in accordance with ASA 315 PAGEREF _Toc51143764 \h 5Significant auditor judgements relating to areas in the financial report that involved significant management judgement PAGEREF _Toc51143765 \h 6The effect on the audit of significant events or transactions that occurred during the period PAGEREF _Toc51143766 \h 6Aurizon Holdings Ltd ASX PAGEREF _Toc51143767 \h 6Key Audit Matters PAGEREF _Toc51143768 \h 7Recognition of access revenue PAGEREF _Toc51143769 \h 7Implementation of a new revenue accounting policy due to the adoption of AASB 15 PAGEREF _Toc51143770 \h 7Recoverability of assets (including Bulk East and Western Australia (WA) Cash Generating Units (CGUs) and Rollingstock) PAGEREF _Toc51143771 \h 8Significance of ASA 701 in Informing Shareholders PAGEREF _Toc51143772 \h 8Recommendations PAGEREF _Toc51143773 \h 8Reference List PAGEREF _Toc51143774 \h 10
General Purpose Financial Reporting
A general-purpose financial report is a broad report capturing all the information pertaining to a business for a given financial period. These reports provide information to satisfy the common information needs of users who are unable to command the preparation of reports tailored to their particular information needs (SAC 2, pp.5). Users such as Central banks and tax authorities have the authority to obtain entities financial information to meet their needs (SAC 2, PP.5). Such entities do not depend on the general information served to other groups.
Both business and non-business entities operating in the public or private sectors prepare general purpose financial reports. They include economic, administrative, or legal entities such as statutory authorities, government departments, sole proprietorships, partnerships, superannuation plans, investor-owned entities, such as companies and unit trusts, mutual co-operative entities such as credit unions, and human service entities such as professional association and churches (SAC 2, pp.6).
Financial reporting entails the creation of financial statements and accompanying financial and other details (SAC 2, pp.6). A reporting entity communicates its financial information to users through financial reports such as financial statements, supplementary schedules, notes and explanatory materials to be read with the financial statements (SAC 2, pp.6). Users of financial reports may also satisfy their information needs by obtaining information by consulting other sources such as third parties.