Sustainability Reporting Audit and Assurance

Question: Discuss about the Sustainability Reporting Audit and Assurance. Answer: Introduction The main purpose of the study is discussing the auditing and ethical practices prevailing in the auditing firm. The present segment will assist students for enhancing the critical analysis skills as far as possible (Simnett, Carson Vanstraelen, 2016). It is essential to align auditor dependence and issues for accepting the given audit engagements. This means Fellowes and Associates uses section 290.177 concerned with intangible assets valuation at the same time. It is essential for meeting the financial valuation techniques after reviewing the work of Professional Accountant working as external audit team. This will help in obtaining essential client acknowledgement by taking the responsibility of auditors by applying financial valuation techniques in the most appropriate way. It is thereby viewed that Fellowes and Associates Chartered Accountants considers as victorious mid-tier secretarial firm dealing with wide-range of customers operated in Australia (Redmayne, 2013). Therefore, Fellows and Associates aims at gaining new client for the Group named as Health Care Holdings Group after owning 100% for the real business entities. Explaining various independent issues for accepting engagements In the first situation, it has been noted that accountants makes ways for becoming part of 2014 audit team in order to own shares in Health care Holdings Group (Moroney et al., 2014). Addition to that, this condition emphasis upon bringing together interest of accountants is not material in any case. According to the Section AUST290.41.3 of APES 110, indicate the monetary interest in potential client by reducing the self-interest threat as far as possible. Share owning is required in order to involve client engagement by creation of direct financial interest. As mentioned in the Section 290.204, it is easy to understand that auditor takes into consideration nature of financial interest. This help in determining the fact by including threat significance and implementing appropriate safeguards in an overall manner (Junior, Best Cotter, 2014). Therefore, matter that needs to be discussed is the direct or indirect shareholding acts as major role in assurance team. On the contrary, financial companies own shares for serving the potential client by way of creating self-interest threat (Hardy, 2014). In this section, an auditor as to understanding the nature of financial interest gives relevance. This help in enhancing the implied risk and applying suitable safeguard as far as possible. Therefore, it is necessary for considering the potential issues such as how material can be hold or predicting the role of Senior Management in the most appropriate way. As mentioned in 290.106, it reveals whether an associate of a declaration team is able to express adherence towards fiscal attention (Hardidge et al., 2013). This give rise to material indirect attributes concerned with financial interest of the auditing firm. Therefore, Assurance client feels that it is a self-interest threat arising from significant evidence from reduce acceptance level in any case. On the contrary, it requires considering the fact involving disposing the undeviating economic interest useful for individuals for becoming a part of Associate Reassurance Team. Addition to that, it takes into consideration disposal of indirect financial interest by acting as a member of Assurance Team. In some cases, it is essential to remove the member of Assurance Team for taking part in assurance engagement (Carson, Fargher Zhang, 2016). As far as self-interest threat is concerned, it occurs when an auditing firm is benefited from monetary interest and other self-interest disagreement especially from Assurance client. For instance, when a declaration client creates a particular threat by way of limiting the activities by gaining direct monetary attention or any case of material indirect monetary attention The financial client requires pleading the client regarding creation of self-interest intimidation. It requires evaluating the meaning of threat and suitable safeguards by reducing at acceptance level (Botica?Redmayne, 2013). At the same time, it means understanding the role of person who has enough responsibility in holding financial interest and materiality of financial interest types. The above situation can be understood by answering the key questions whereby an item is material and degree of subjectivity in case of valuation services (Simnett, Carson Vanstraelen, 2016). After viewing at the intangibles, it states basis regarding valuation of real property like land and buildings at the same time. Addition to that, Fellowes and Associates aims at withdrawing attributes from audit or client by way of obtaining independent tangible valuation in the most appropriate way. On the contrary, state valuation services arise prior to activities concerning audit engagement by way of accepting the activities. In other words, there is no actual conflict present between Fellowes and Associates duties concerned as valuer as well as auditor. It is the responsibility of Fellowes and Associates to provide an opinion regarding the future valuation activities. According to the Section APES 110 ss 290.174 to 290.279, it renders proper explanation regarding the potential issues of valuation services as addressed by declaration client. It is necessary to make ways for reducing the problem by gathering evidence from financial report audit and valuation of assets (Redmayne, 2013). In this case, auditor makes ways for collecting client valuation for auditing their work in the most appropriate way. Some of the major safeguard policies are applied in various valuable situations as mentioned in the section 290.199 implying: This help in connecting an added expert accountant who shows enough responsibility for getting the job done This will thereby connect ways by getting confirmation by an audit consumer. It requires considering fundamental assumptions by assessing the methodology section after obtaining the approval for use (Simnett, Carson Vanstraelen, 2016) Other ways for connecting will be obtaining the audit client acknowledgement of responsibility after proper completion of work by an auditing firm This will help in connecting ways for making arrangements. This is the time when personnel renders services for participating in the matters of audit engagement Conclusion From the above study, it has been understood that audit team requires performing the financial valuation for the potential audit clients concerning to financial report audit. This will take into consideration certain aspects that are immaterial and pose low degree of subjectivity. It is necessary for the client for obtaining the independent financial valuation as undertaken by Fellowes and Associates after audit withdrawal case. Reference List Botica?Redmayne, N. (2013). Auditing and Assurance Services in Australia: An Integrated Approach. Pacific Accounting Review. Carson, E., Fargher, N., Zhang, Y. (2016). Trends in Auditor Reporting in Australia: A Synthesis and Opportunities for Research. Australian Accounting Review, 26(3), 226-242. Hardidge, D., Abeysekera, I., Chew, T. G., De Santi, R., Egan, T., Ghandar, A., ... Shying, M. (2013). A guide to understanding auditing and assurance: listed companies. Hardy, C. A. (2014). The messy matters of continuous assurance: Findings from exploratory research in Australia. Journal of Information Systems, 28(2), 357-377. Junior, R. M., Best, P. J., Cotter, J. (2014). Sustainability reporting and assurance: a historical analysis on a world-wide phenomenon. Journal of Business Ethics, 120(1), 1-11. Moroney, R., Campbell, F., Hamilton, J., Warren, V. (2014). Auditing: A Practical Approach. Wiley Global Education. Redmayne, N. B. (2013). Auditing and Assurance Services and Ethics in Australia: An Integrated Approach. Journal of Accounting Organizational Change. Simnett, R., Carson, E., Vanstraelen, A. (2016). International Archival Auditing and Assurance Research: Trends, Methodological Issues and Opportunities. Auditing: A Journal of Practice and Theory.