NAME of The company considered for the

Company discussion is Bega Cheese Limited

DISCUSSION

FACTOR LOW MODERATE HIGH

Initial versus Based on the annual report of the Moderate

repeat audits company it is noted that the audit is
performed only in end of the year which
was done in August 2018, the auditor has
stated that the audit approach based on
three key aspects: materiality of the
financial transactions, scope of the audit
and key audit matters. ( Bekaert, 2016).
There was no major repeat audit has
happened in the company, the audit has
been performed based on the standards
which has been set by AASB and IFRS,
the auditor has described in detail the key
audit aspects which are related to the
goodwill & intangibles and inventory
valuation. Hence, the risk associated with
the initial vs repeat audits is moderate as
the company has complied with the
necessary laws and regulations, it should
be further noted that the audit report has
been complied with the AS 700
accounting standards as stated by AASB.
( Bega 2018)

Quantity of The annual report of the company has High

non-routine clearly stated that all the transactions are
transactions being made in adherence to the
accounting standards. It is noted that the
overall finance function of the company
tend to assess the overall credit quality
related to the customers by considering
the overall quality of the customers, the
management always focuses on the
quality of the customers by focusing on
the financial position which is based on
 the past experience and also related to
other related factors. ( Alexander, 2017).
The management has stated the
individual risk limits which is mainly
based on the internal risk and external
ratings which is accordance to the limit
stated by the board, the management
also stated that the compliance is made
in accordance with the credit limits by the
customers, these aspects are monitored
by the management on a regular basis
the overall credit quality of the financial
assets which is impaired is also assessed
based on the credit risk policies which
were already in place.

References

Alexander, D. Britton, A., et al., (2017) International financial reporting and analysis. 7th ed. London:
Cengage. ISBN 978-1-473-72545-4

Bega. (2018). Annual report of Bega Cheese limited

Bekaert, G. J., & Hodrick, R.J., (2016), International Financial Management, 2nd Ed., Pearson,
London. ISBN-10: 129202139X (also available as e-book)