Review the annual reports including financial statements presented to the shareholders for the financial year ended 30 June 2015 in respect of the two companies noted below and answer the following questions:
(A) Wesfarmers Limited:
https://www.wesfarmers.com.au/investor-centre/company-performance-news/reports
(B) Virgin Australia Limited:
https://www.virginaustralia.com/au/en/about-us/company-overview/investor-information/annual-reports/
Questions to be answered by the group or team/:
(A) If you had been the auditor of each company identify at least three (3) inherent risks that you would have considered for each company in the audit planning phase? Justify your answer.
(B) What audit procedures and/or tasks would you have planned to carry out in response to the inherent risks identified by you in 1 above?
(C) If you had carried out an analytical review on the financial statements of these companies in the planning phase, what areas of concern (high risk or problem areas) or comfort would you have identified? Justify your answer and identify at least three (3) points for each company. (Hint: To answer this part you will need to carry out an analytical review).
(D) What audit procedures and/or tasks would you have planned to carry out in response to the high risks or problem areas identified by you in (C) above? Alternatively, in relation to which area would you have minimised your evidence gathering procedure?
(E) An Independent Auditor's Report to the Members has been issued for each company for the financial year ended 30 June 2015:
(a) Identify the type of audit opinion issued by each auditor, and justify your answer.
(b) Do you agree with the type of opinion issued by the auditor? Why or why not?
Please indicate an alternative audit opinion if you do not agree with the one issued.