LINK GROUP audit report

Document Type:Thesis

Subject Area:Accounting

Document 1

The main business operations of LINK Group are fund administration as well as registration of securities. Fund Administration is concerned with the administration services to the superannuation funds. Other segment is the registration of securities which mainly covers the corporate markets where issuers are linked with the stakeholders where they offer services such as the shareholder management and analysis of the same (Link group, 2018). All these operations were made possible through the use of the LINK expertise in offering digital solutions and analysis of data. Most recently, the Link Group announced their financial performance that was covering the first half year results in the current year 2018. Auditor gave a declaration that was best to his knowledge and also the belief in connection to review the Link Holdings Company for the accounting period that was ending on December 31st, 2017, there was: I.

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No infringements encountered on the independence of the auditor requirements as it is outlined in the Corporations Act of year 2001 in connection to the review II. Also, there were no breaches to the code of conduct to any applicable conduct in relation to the review of the company’s books of accounts. The responsibility of the assessor was to give an opinion on the financial books of LINK Group based on the how the items were presented on books of account. Assessment was conducted in agreement with the International Standards used on Auditing process and also the Standards on Auditing. The Non-Audit services offered by the Auditor Over the years as the listed firms struggle to comply with the Australian Accounting Standard as well as the Regulations 2001.

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During the financial year (2017), KPMG, which is the Link auditor, carried out some services apart from the audit of financial statements. These non – audit services amounted to about $615,458. The Link Group Board deliberated these non-audit services that were offered during the accounting period by the external auditor (Link group, 2018). The board were satisfied with those non – audit services in accordance with the resolution passed by the Risk and Audit Committee. Quality Controls. Auditors of LINK Group were offering quality controls. This had a substantial role in assisting in detection and prevention of auditor’s independence challenges. This non audit service is recognized and to some extent it is deemed not being independent in certain impairments of independence. iii. v. Assessing the performance of both the internal and external auditors.

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vi. They keep the Board informed on its recommendations. vii. Investments in the securities of unlisted equity The key audit matter in this case was the ever increasing size in terms of balance as well as the valuation used in these investments from the unlisted securities which are mainly held at their fair value. The audit procedure used was assessing the disclosure pertaining investments in these unlisted equity bearing in mind the requirement standards on accounting. Also, the appropriateness of methods that were used value these investments were considered. Revenue Revenue tends to be a Key Audit Matter as a result of its importance to the company’s results as well as the significance of revenue on the audit effort since it is required due to revenue being got from various streams of diverse services offered to the customers.

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