Carries Out The Marketing Of These Products â€Myassignmenthelp.Com

Question: Discuss About The Carries Out The Marketing Of These Products? Answer: Introduction Graincorp is a publically listed company under ASX (Australian Stock Exchange) and the major business of the company is to receive and store the commodities related to grains. The company also offers the logistics and also carries out the marketing of these products. Their vision statement represents what they want and their strategies represent how to achieve those targets. The main objective is to get the identification and become the leader in the world in delivering various retail goods and services in the fast growing retail sector and generating value for the companys shareholders at the same time through providing better working environment and asking the local people in which the company operates to take active part in the business. The strategy of the company is to focus on strengthening the core business of the company. These involve pursuing for the growth opportunities and delivering the return on the capital investment as well as expanding their business with improvement of the efficiency (Graincorp.com.au, 2016). Audit planning Audit planning involves establishment of overall strategies of audit for developing and engaging the audit plan. In particular, the audit plan includes the planning for the risk assessment process and planning the responses for the risk associated with material misstatement. Planning of audit is not the separate phase of the audit rather it is an iterative and continuous process under audit (Chou, 2015). It starts with the previous audit and goes on till the conclusion of the current audit. The audit planning is a process that is carried out through steps and under the planning the internal control and the financial aspects of the client are reviewed. It is recognized that preparing the audit plant by NY audit firm for their client Harvey Norman will require careful and in-depth observation. Different stages are there under the audit planning aspects. They are Make acceptance of the client and performing the planning for the initial audit As the business process and operating environment of each company is different, the planning of the audit must be different and specific for each company. It is observed that the business procedure and circumstances of Graincorp Limited is different as it included under the agri-business. Therefore, the agri-business industry shall be analysed before planning the audit for Graincorp Limited. It is identified that the previous years audit was performed by Price Water House Coopers, NY audit firm shall go through the previous years audit report issued by PWC and may contact the auditor before carrying out the audit of the company, if it is permitted by the company (Plumlee, Rixom Rosman, 2014). Further, the various companies that are associated with Graincorp Limited may be contacted to get any specific information regarding the client. Further, the following tasks must be carried out before proceeding for the audit plan Selecting the employees those will be engaged for the purpose of audit Recognizing the reasons behind the requirement of the client for audit Forming a understanding level with the client company The auditor will arrange a meeting with the Graincorp Limiteds executive to discuss regarding the staffs those will be engaged for the audit, areas that will be covered and analysed under the audit engagement and the availability of the information required for the purpose of audit. It is recognized from the business process and business management environment of Graincorp that they need the audit to assess the internal control effectiveness of the company. Further, they require the audit to review the true and fairness aspect of the company with regard to the financial statements of the company. The audit is further required to comment on the the conceptual framework and the accounting standards followed by the company while preparing their financial statement. Understanding the business process as well as the business industry of the client Before proceeding for the audit plan and audit, the audit firm NY must search about the industry that is the agri-business industry, in which the business of the client relates. Moreover, the auditor shall gather information regarding the business operation processes and treatment of intangible assets of the client to suggest the best available option to the company. For this purpose, the auditor mast collect information regarding the clients External as well as the internal environment related to the business Business operations and the procedures Governing regulations and management aspect Objectives and the business approaches of the client Performance measurement of the client It is recognized from the research of agribusiness that the agribusiness and food industry in Australia is one of the major part of the Australian economy and they contribute a significant part to the regional economy areas through providing service, business and employment opportunities (Pike et al., 2016). Further, the competitiveness agenda and industry innovation of Australian Government identified the agribusiness and food industry as an area of the competitive strength for the country and it prioritizes is as the growth industry through the growth centre of agri-business and food industry. Analysing the clients business risk While preparing the audit planning, the auditor shall apply strategic approaches to assess the risks associated with the business of the client and find out the basis for evaluating the error, fraud and material misstatement associated with the clients business, if any. Further, the following aspects must be confirmed by the management of Graincorp Limited that They communicated with the audit committee as well as with the auditor about the significant lack in the internal control system and the material weakness, if any. The disclosure process of the financial statement and the internal controls are in place to assure regarding the major business risk. It is recognized that the agribusiness sector in Australia is loaded with various risks and to maintain sustainability of Graincorp Limited, the risk management approach specifically for dealing with the investment risk and improving the opportunities towards asset acquisition and improvement in investment access play major role as it will support the rural communities and enhance the growth of agribusiness sector in international as well as domestic markets (Costan Popa, 2017). Apart from this, Graincorp is also exposed to the fluctuation threat with regard to income loss for the primary producers; the expected impact on the trading loss on the economy of Australia is a serious issue that require more attention from the management who are responsible for preparing the policies for international as well as national level of business Performance of preliminary analytical procedure Under the analytical procedure the financial performance of the client company is measured through various ratios and is compared with the industry average. The performance will then be compared with the previous years performance of the company to analyse the performance trend. Ratio calculation Ratio Formula Result 2016 2015 Profitability ratios Net profit ratio Net profit / sales 0.74% 0.79% Return on equity Net income / shareholder's equity 1.77% 1.76% Liquidity ratio Current ratio Current assets / current liabilities 1.56 1.72 Liquid ratio Liquid assets / Current liabilities 0.99 1.08 Leverage ratio Debt ratio Total liabilities / total assets 0.51 0.50 Debt to equity ratio Total liabilities / total equity 1.05 1.02 Analysis of financial performance It is identified from the above ratios that the net profit ratio of Graincorp Limited is only 0.74% in 2016 as compared to 0.79% in 2015. Further, the return on the shareholders equity of the company is only 1.76% and 1.77% respectively. Therefore, the profitability position of the company is under risk and the reason behind this must be found out. Considering the liquidity ratio of the company it is identified that the company is in a good position to pay off their short term liabilities with the available current assets (Gurov Milgunova, 2016). However, it must be analysed that whether the company is using its working capital efficiently or not. Looking into the leverage ratio of the company it is found that the creditor and the investor almost has the equal right on the asset of the company. Therefore, it indicates that Graincorp Limited is highly leveraged and the auditor must look into these areas and shall include the fact under audit planning. Audit test Considering the business processes and operating environment of Graincorp Limited, it is suggested that the auditor shall apply the Analytical test approach for carrying out the audit of Graincorp Limited (Jans, Alles Vasarhelyi, 2014). Under the analytical test, the performance of the company for the current year will be analysed through various ratios like profitability ratio, leverage ratio and liquidity ratio and the performance will be compared with the companys previous years performance. Moreover, under this approach the revenues as well as the expenses of the companies for the current year will be analysed and will be compared with that of the previous year (Arens et al., 2016). References Arens, A. A., Elder, R. J., Beasley, M. S., Hogan, C. E. (2016). Auditing and assurance services. Pearson. Chou, D. C. (2015). Cloud computing risk and audit issues.Computer Standards Interfaces,42, 137-142. Costan, L., Popa, S. (2017, May). The Company's Internal Audit Seen as a Piece of a Complex System. InControl Systems and Computer Science (CSCS), 2017 21st International Conference on(pp. 371-374). IEEE. Graincorp.com.au. (2016).Reports. [online] Available at: https://www.wesfarmers.com.au/investor-centre/company-performance-news/reports [Accessed 11 Sept. 2017]. Gurov, V., Milgunova, I. (2016). Improving of assessment management of the audited organizations performance at the stage of audit planning. -, (157), 115-118 Jans, M., Alles, M. G., Vasarhelyi, M. A. (2014). A field study on the use of process mining of event logs as an analytical procedure in auditing.The Accounting Review,89(5), 1751-1773. Pike, B. J., Chui, L., Martin, K. A., Olvera, R. M. (2016). External Auditors' Involvement in the Internal Audit Function's Work Plan and Subsequent Reliance Before and After a Negative Audit Discovery.Auditing: A Journal of Practice Theory,35(4), 159-173. Plumlee, R. D., Rixom, B. A., Rosman, A. J. (2014). Training auditors to perform analytical procedures using metacognitive skills.The Accounting Review,90(1), 351-369.