Auditing and Assurance Service
Group Assignment
Australian Agriculture Company (AAC)
Executive summary
This report provides analysis and evaluation of external and internal environment of
Australian Agricultural Company (AAC), so as to identify and analyse highly relevant audit
risks. In addition, due to significant status of livestock in AAC, related modification and
improvement are also offered to enhance the audit plan of AAC to ensure fairness of
biological asset evaluation.
With description of competitive industry and AAC business operation, AAC businesses are
assessed comprehensively and deeply. In addition, PEST strategic analysis is conducted to
provide a detailed and overall environmental analysis, in order to identify business risks and
audit risks.
Accordingly, it is found that AAC is faced with unfavourable competitive situation, which
impacts its normal performances recently. More importantly, four key audit risk areas are
identified and verified, including Revenue, Property, Plant and Equipment, Interest-Bearing
Liabilities and Borrowings and Foreign exchange contracts accounts. And with respect to
biological assets, creative and innovative audit plan improvements are recommended to
increase fairness of evaluation.
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Contents
PART I.............................................................................................................................. 4
1、Principal Sources of AAC’s Revenue.................................................................................................................. 4
2、Main Products & strategies on Operations.................................................................................................... 4
3、Market Shares and Competitors ......................................................................................................................... 5
4、Regulation influence on operations...