What are the standards or legislations that management and


Public listed company:EMPIRE OIL & GAS NL

Financial year: 2012

1) Number of independent directors and executive directors in the audit committeeor equivalent.

Empire Oil and Gas NL was facing some economic constraints therefore, it had only four directors in theAudit Committee for the financial year. It comprised of two executives and two non-executives dueto economic constraints.

One of the directors of the company is a fulltime geologist and therefore did not have thequalifications to be a committee member.

Thecompany appointed an additional non-executiveDirector during the year. The members of the Audit Committee during theyear were:

• Mr Neil Joyce (Non-Executive Director andChairman of the AuditCommittee)
• Mr Craig Marshall (Managing Director)
• Mr K Hogg (Company Secretary)

2) Who is the chairman of the audit committee?

Because of economic constraints the company has appointed the Chairman ofthe Board as the Chairman of the Audit Committee. Mr Neil Joyce is the Non-Executive Director andChairman of the AuditCommittee.

3) How many number of meetings (if available) held by the audit committee during the year?

Two meetings were held for the audit committee in the year

4) Name of the external auditor?

Stantons international audit and consulting pty ltd is the external auditor for Empire Oil and Gas NL.

5) How much is the audit fee paid to the external auditor for the current year?
$81,957 was paid as total remuneration to auditors

6) What is the nature and amount of non-audit services provided by the external auditor?

The Auditors provided no other services to theEmpire Group of Companies

7) When was the audit report issued?

Audit report for financial statements ending 30 June 2012 were presented on 28 September 2012

8) Briefly describe the structure / contents of the audit report.

The auditors first give a declaration to board of directors to assure them about the integrity and quality of their work. The independent auditors report describes:

1. The report describes which all financial statements and for which financial yearhave been audited.

2. They describe the responsibility of both directors as well as auditors towards true and fair presentation of the financial and other information reflected in the company's reports.

3.The reports declares independence from any influences in assessment of company's information.

4. They also assess the fairness of remuneration policies for the company.

5. Finally, the report discusses the opinion of the auditors regarding compliance and integrity.

9) To whom (full name) the audit report is addressed to?

Auditorsindependence declaration is addressed to the board of directors of the company. The audit report is addressedto the directors of the company to all the members and stakeholders in the company.

10) What is the type of modification (if any) in the audit report?

There is no modification in the auditors report as such, the company's external auditors were changed from OrdNexia Pty Ltdto Stantons International from November 2010

11) What are the standards or legislations that management and auditor complied with as according to directors' responsibility paragraph and auditor's responsibility paragraph in the audit report?

• AustralianAccounting Standards
• The Corporations Act 2001
• Australian Accounting StandardAASB 101 Presentation of Financial Statements,
• InternationalFinancial Reporting Standards.
• Australian AuditingStandards

12) Which financial statements dothe auditor making explicit reference to in the audit report?
• The consolidated statement ofcomprehensive income,
• The consolidated statement ofchanges in equity and
• The consolidated statement ofcash flows for the year then ended,

In addition, they also talk about notes comprisinga summary of significant accounting policies andother explanatory information and the directors'declaration of the consolidated entity comprising thecompany and the entities it controlled at the year'send or from time to time during the financial year

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