CERTIFICATE OF AUDIT OF MEMBER FINANCIAL STATEMENTS/SYSTEMS
AUDIT REPORT
Part 1 – Auditor’s Declaration
1. The Financial Statements referred to in this Audit Report relate to the Accounts of the
AWEX Member or prospective Member as detailed below.
2. I/we have conducted an independent audit/review of said financial statements.
3. The audit/review has been conducted in accordance with the provisions of the
Statement of Auditing Standards to provide reasonable assurance that the financial
statements are free of material misstatements.
4. The audit has been conducted based on appropriate examination and sampling
techniques and the evaluation of accounting policies. The procedures have been
undertaken to form an opinion whether, in all material respects the financial statements
are presented fairly in accordance with Accounting Standards and other mandatory
professional reporting requirements and statutory requirements in Australia.
5. In my/our opinion the financial statements of the Member give a true and fair view of the
organisations financial position as at the date below and of its performance for the year
ended on that date and comply with Accounting Standards, Corporations Regulations
and other mandatory professional reporting requirements.
6. In my/our opinion there are reasonable grounds to believe that there are no factors
which may impact on the member’s ability to comply with AWEX’s Constitution and
Rules (including Code of Conduct).
Note: Where the member has not appointed an auditor, this statement may be completed by
the Members’ internal or external accountant.
Dated this day of in the year
Auditors Name:
ABN:
Postal Address:
Telephone No:
I have completed the financial statement audit/review for:
AWEX Member
Name:
ABN:
For Audit year: to:
Signature of Reporting Auditor/Accountant:
To be returned to: The Company Secretary
Australian Wool Exchange Ltd
PO Box 649
LANE COVE NSW 1595
Document: Audit Checklist - Review 0509 1
Australian Wool Exchange Ltd
Part 2 – Audit/Review Report Checklist
Background
1. This checklist has been prepared as a guide for auditors/accountants in their examination
of the financial statements of AWEX Members so that AWEX may assess the Members
ability to comply with AWEX’s Constitution and Rules (including Code of Conduct).
2. The checklist should not be used as an exhaustive list nor should it replace standard audit
testing or procedures.
3. The existence or absence of any one of these indicators will not of itself suggest a
Members inability to comply with AWEX’s Constitution and Rules (including Code of
Conduct).
Yes No N/A
CASH
1. Are appropriate procedures in place to ensure correct
handling of client monies?
2. Are separate bank accounts operated for client monies?
3. Have regular bank reconciliation’s been performed and
sighted for these accounts?
WOOL – PHYSICAL SECURITY
4. Is the wool appropriately safeguarded and contained in a
recognised dump/storage facility?
5. Are adequate insurance polices in place to cover transport and
disasters such as drought, flood, fire, fraud or sabotage?
GOING CONCERN INDICATORS
Operating/Management issues:
6. Does the organisation have a strategic direction, including
appropriately documented policies, plans and forecasts such as
forward budgets and cash flow projections?
7. Does the organisation demonstrate an adherence to said policies
and plans in its day-to-day operations?
8. Does the organisation have an appropriate governance structure
with adequate consultation and/or involvement in key decisions,
appropriate documentation and communication of decisions,
balance and expertise amongst Board and or Management?
9. Does the organisation have appropriate management expertise
and key management personnel?
10. Does the organisation have appropriate supplies and/or
appropriate relationships with principal suppliers?
11. Does the organisation have appropriate management information
systems with effective information flows and evidence of
appropriate management action in response to information
received?
12. Does the organisation have appropriate insurance to cover
disasters such as drought, flood, fire, fraud or sabotage?
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Australian Wool Exchange Ltd
Yes No N/A
Financial indications
13. Does the organisation have an appropriate gearing or net liability
position?
14. Does the organisation have sufficient resources and/or
appropriate structures in place to ensure any fixed-term
borrowings approaching maturity have realistic prospects of
renewal or repayment?
15. Does the organisation rely on short-term borrowings to finance
long-term assets?
16. Does the organisation have favourable key financial ratios,
including but not limited to: working capital ratio, gross profit ratio,
times interest earned, return on equity, inventory turnover?
17. Are operating profits and cash flows from core business activities
sustainable?
18. Does the organisation pay its creditors on or before their due
dates?
19. Does the organisation comply with the terms of loan
agreements?
20. Has the organisation restructured debt during the period?
21. Has the organisation experienced difficulty in obtaining finance?
22. Has the organisation undertaken new financing methods or
disposed of substantial assets?
Other indications
23. Does the organisation appear to be affected by undue influence
of a dominant market competitor?
24. Does the organisation have any pending legal proceedings
against the entity that may result in judgements that could not be
met or in restrictions on trading opportunities?
25. Have technical developments or major industry initiatives
occurred which render a key product or functions obsolete?
26. Does the organisation have adequate back-up and recovery
capabilities for key financial or other information systems in
place?
