Auditing and Assurance for Management - myassignmenthelp.com

Question: Discuss about theAuditing and Assurance for Management and Governance. Answer: Introduction AMP Limited is one of the Australia and New Zealand's well established and independent wealth management financial institution. The firm is increasing its international investment and is also strategically growing its retail banking activities in Australia. The main aim of this firm is to provide financial as well as other products and services related advice to people as well as other organizations in order to build their financial security. Other than Australia and New Zealand the company is serving in different continents like Asia, North America, and Europe and also in the Middle Eastern Countries(AMP, 2017). This report presents the risk analysis of AMP Limited. For doing risk analysis, various steps have been followed. This includes understanding nature of entity, the Industry in which company operates, the legal environment, and external environmental factors. In addition, report also discusses about AMPs financial performance, management and governance, objectives and strateg ies. Understanding Nature of the entity Business operations AMP Limited exists in the financial industry from last 160 years. AMP Limited has grown their business in the last decades and has become one of the leading specialists in wealth management in countries like Australia and New Zealand. The main business operation that is carried on by the AMP Limited is providing financial advices to their customers, providing investment products like retirement income, superannuation etc., to its customers as well as to its businesses. Its business operation also covers life insurance, and also income protection. Its operation also undertakes administration activities and also provides banking and investment services. The company also helps its customers with investing in shares and also in properties and infrastructure, etc.(AMP, 2017). Investment and Investment Activities AMP Limited undertakes various investment activities for their clients. They undertake investment activities in the field of real estate, shares and equities, infrastructure and other various multi-assets portfolios. To undertake these investment activities the company collaborates with several other international investment partners in order to get access to various other new investment opportunities that are available in the global market(Mason, 2017). Finance and Financial Activities The AMP Limited has more than 5400 employees and more than 8 lakh shareholders attached to the company and the companymanages over 220 billion dollars worth assets. The company provides financial products and also solutions related to financial matters to their customers. The company undertakes this activity with the help of a number of financial advisors who have vast experience and knowledge on financial matters so that the customers can benefit to the maximum level. AMP is considered to be the market leader when it comes to financial advices. The AMP Limiteds financial services acquire a leading position in the market when it comes to wealth protection as well as wealth management(Infopub, 2016). Financial Reporting Practices High performing organizations in order to evaluate their annual performance as well as to comply with the regulations and showcase their achievements to their customers practice the system of financial reporting. In this financial reporting the AMP Limited has discussed about its vision, mission and goals; what all are the strengths of the company and in what field the company is dealing as well as prospering. The profits that the company has earned and the taxes that the company has paid everything are discussed in this financial report(AMP Group Finance Services Limited, 2016). Understanding the Industry Industry size The banking and finance industry forms an important part of the Australian economy. The financial service sector of Australia is one of the largest contributors of the economy. It contributes nearly $140 billion to the Australian GDP over the last few years(Fintech, 2017). Industry Growth Financial sector plays a major role in reshaping the growth of the country. It increases the capitalinvestment for the economy as a whole by entering into partnership with the business and the government. The financial system of Australia has been able to mobilize the savings of the people and gave them a direction to invest their money in the market to boost capital formation of the country. So, it can be said that banking and financial sector plays a very important role to boost the growth of the country as a whole(FSI, 2014). Industry supply chain The financial sector has started to adoptthe concept of supply chain management. The supply chain has come from the well-established concept of supply chain in the trading world. The banking and financial sector supply chain involves the payments side of the business, which includes the transactions starting from the purchase order till the final settlement is done. The main importance of adopting the supply chain management is that know the banking and the financial institutions will be able to take an informed decision and work accordingly(Britz, 2007). Major players The major banking and financial institution players of Australia includes the Bank of Queensland, one of the oldest in Queensland; Bendigo and Adelaide Bank; Bankwest, is a full service bank which is based in Perth; Suncorp Group Limited, one of the largest banks of Australia; AMP Bank Limited, offers financial services and is opening its subsidiaries worldwide(Business Review Australia, 2014). Market shares of industry players The market share of the major banks in Australia has seen to be increasing the past few years. Their market share has been increased from 65.4 per cent in 2007 to 78/5 per cent in the year 2014 and since it has shown an upward trend in the market share(FSI, 2017). Critical success factors The major critical success factors of banking and financial institutions are tracking the results that are outcomes of marketing efforts. Communicating the brand in front of the companysemployees as well as customers. Focusing on the ever-changing needs of the people and offering them services accordingly. Also make proper utilization of the resources available and the recent technologies are some of the major critical success factors(Wagner, 2017). Major Threats The major threats that comes in front of the banking and the financial institutions is that the banks are not able to make enough money as they are not getting their return on investment properly as well as the return on equity. The competition is increasing day by day because of the opening up of the financial technologies companies in the market. The regulatory pressures are other threats to the banking industry as they have to spend a large part of their income to comply with the norms of the government. References AMP Group Finance Services Limited, 2016. Directors report and Financial report for the year ended 31 December 2016. [Online] Available at: https://www.annualreports.com/HostedData/AnnualReports/PDF/OTC_AMLTY_2016.pdf [Accessed 26 sept 2017]. AMP, 2017. Anout AMP. [Online] Available at: https://www.amp.com.au/amp/about-amp [Accessed 26 sept 2017]. Britz, M.B., 2007. Banks Starting to Embrace Concept of Financial Supply Chain Management. [Online] Available at: https://www.banktech.com/payments/banks-starting-to-embrace-concept-of-financial-supply-chain-management/d/d-id/1291166? [Accessed 26 sept 2017]. Business Review Australia, 2014. Top 10 Banks In Australia. [Online] Available at: https://www.businessreviewaustralia.com/leadership/1364/Top-10-Banks-In-Australia [Accessed 26 sept 2017]. Fintech, 2017. The strength of Australias financial sector. [Online] Available at: https://fintech.treasury.gov.au/the-strength-of-australias-financial-sector/ [Accessed 26 sept 2017]. FSI, 2014. Financing Australias Growth. [Online] Available at: https://fsi.gov.au/files/2014/04/Industry_Super_Australia_2014.pdf [Accessed 26 sept 2017]. FSI, 2017. Banking sector. [Online] Available at: https://fsi.gov.au/publications/interim-report/02-competition/banking-sector/ [Accessed 26 sept 2017]. Infopub, 2016. AMP Group Finance Services Limited. [Online] Available at: https://infopub.sgx.com/FileOpen/AMP%20GFS%20FY15%20Directors%20Report%20and%20Financials.ashx?App=AnnouncementFileID=398722 [Accessed 26 sept 2017]. Mason, P., 2017. Directors Report and Financial Report for the half year ended 30 June 2009. [Online] Available at: https://www.google.co.in/url?sa=trct=jq=esrc=ssource=webcd=1cad=rjauact=8ved=0ahUKEwjD2PXxj8LWAhXKOI8KHW8fCcAQFggnMAAurl=http%3A%2F%2Fphx.corporate-ir.net%2FExternal.File%3Fitem%3DUGFyZW50SUQ9NDc2MzMxfENoaWxkSUQ9NTA4ODMzfFR5cGU9MQ%3D%3D%26t%3D1u [Accessed 26 sept 2017]. Wagner, N., 2017. The Key Success Factors in Financial Services. [Online] Available at: https://smallbusiness.chron.com/key-success-factors-financial-services-63370.html [Accessed 26 sept 2017].