Audit and Assurance

: In short, an audit serves to lend credibility to an entity’s annual accounts and ensure a level of trust for third parties when making decisions.

The entity being audited will be required to provide extensive information about the entity. This includes providing comprehensive documentation related to the activities of the entity. A certain amount of time will also need to be devoted to having meetings with the audit team.

An auditor’s report contains a professional opinion given by the auditor on the reliability of an entity’s annual accounts in accordance with Australian accounting standards. The report will therefore express whether the annual accounts provided represent a true and fair view of the financial situation of the entity.

Not all companies are required to conduct an audit. Per the Australian corporate regulator, audits are a statutory requirement for companies that meet at least two of the three following criteria:

1. Have an annual turnover of AUD$50 million or more.
2. Have consolidated gross assets of AUD$25 million or more
3. Employ 50 or more staff.

Companies not required to conduct an audit can apply for an audit exemption.