Report on Auditing Issues of West Point Group of Industries in Australia

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Report on Auditing Issues of West Point Group of Industries Table of Contents 1. Executive Summary 2. Introduction 3. Discussion 4. Audit Issues in the audit of West Point by KPMG i. Failure to Obtain Audit Evidence ii. Failure to give appropriate audit opinions: iii. Inadequate Fund Raising iv. Failure to identify solvency of the Company v. Failure to follow directions of Corporate Authority vi. Expectation Gap 5. ASIC Action against KPMG & West Point 6. Conclusion 7. References Executive Summary: West point group of companies was an Australian based company which was carrying on Property development business throughout Australia. For extending its business, West point Secured loans…show more content…
ASIC took action against KPMG and its auditors. ASIC also took civil action against KPMG for compensation of losses and recovered $67.45 million from KPMG. INTRODUCTION: This report is based on the history and collapse of a big Australian giant West Point group of companies. West point Corporation Pty Ltd was the head company of the western Australia based West point Group of Companies ("West point Group") which was primarily engaged in property development and collecting finance for that purpose. In this report, causes of the collapse of the company specially the role of auditors in the collapse will be discussed. This report doesn’t only throw light on the collapse of West Point group of companies but also look at the conduct of the auditors of another well reputed auditing firm KPMG which as a consequence of this negligence had to pay compensation for the damages caused to investors of West Point group of companies. The reason of choosing West Point group of industries to write a report on is that it involves the conduct of two big companies and ASIC action against both of the companies. DISCUSSION: West point group of companies was an Australian based company which

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