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. From the financial report, it was clear that there was a continued growth in the financial positions of the Company as well as continued commitment to partnerships with the client in order to ensure that the growth strategy is achieved(Link group, 2018). The company’s revenue grew by about 27% in comparison to the same period in the last year to about $503. million. Both the digital analysis and engagement of the stakeholders are offered through digital data Services that are the core services. Any company listed on the Australian Stock Exchange is required by the law that governs listing and participation in the stock exchange market to publish the audited reports to the members of the public. The audit report should reveal the auditor’s opinion in regard to the information that was disclosed during the preparation of the auditor’s report. In Australia, most listed companies are now incorporating auditors in preparation of the company’s annual report which is submitted to the shareholders during the Annual General Meetings which has enabled maximization of the shareholders’ value hence protection of their interest (Link group, 2018).

Sign up to view the full document!

The main activity of the Link Group during the accounting period was provision of the technology-that was based on the outsourced services on the administration for superannuation of the fund administration, the corporate markets that are related to the value-added services which includes the management of the data analysis. During the accounting period under consideration, LINK Group had no important changes on the nature of the activities. Independence Declaration by the Auditor The auditors carried out a thorough audit on the company’s financial reports which encompassed the statement of the financial status for a year that was ending on December 31st 2017, and also a statement on the comprehensive income of the company, the account on the changes in equity and also an account of the company’s cash flows as well as the summary on the important accounting policies used by the company.

Sign up to view the full document!

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. 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.

Sign up to view the full document!

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. 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.

Sign up to view the full document!

iii. v. Assessing the performance of both the internal and external auditors. 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.

Sign up to view the full document!

The audit procedure for this scenario is making a selection of invoice samples across all the revenue streams that was raised before the end of year. com. Available at: http://directory. libsyn. com/episode/index/id/4886297 [Accessed 21 Sep. Link group.  Annual Report 2017(online) 1(1), pp.  1-140, Available at: http://investors. linkgroup. com/FormBuilder/_Resource/_module/YfKsMKLWK0WisyLm5uTWZA/file/reports/LNK-2017-Annual-Report. pdf.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template

Downloadable