2018 Rothsay Transparency Report

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INTRODUCTION

Welcome to Rothsay Auditing’s transparency report covering the year ended 30 June 2018.

The report has been prepared in accordance with the requirements of the Corporations Amendment Regulation 2012 (no 5) which requires disclosure of certain information by audit firms, including information on the legal structure, network arrangements, quality control system and public interest clients.

LEGAL STRUCTURE, OWNERSHIP AND GOVERNANCE STRUCTURE

Rothsay Consulting Services Pty Ltd is the owner of the business name Rothsay Auditing. Rothsay Consulting Services Pty Ltd has licenced the use of the business name Rothsay Auditing to the partnership operated by the partners in order that they comply with Australian law and to ensure that audit and other assurance assignments are carried out by an audit partnership.

Rothsay Auditing (Rothsay) has a simple governance structure enabling the partnership firm to make decisions promptly with regard to our assignments and clients and is not affiliated with any network.

OUR QUALITY CONTROL STRUCTURE

At Rothsay we believe that quality control is an integral part of our objective to deliver a professional service to our clients.

We start by recruiting staff with high standards of technical competence and then ensure that their competency is maintained by both technical and soft skill training appropriate to their level of experience.

Partners and qualified staff are required to comply with the Institute of Chartered Accountants in Australia’s continuing professional education requirements which are 120 hours of training and development over a three year period. At least 20 hours (including no more than 10 hours of technical reading) must be completed annually.

Our audit engagements are subject to review by partners, other registered company auditors not part of the engagement audit team and/or industry experts to ensure compliance with Australian Auditing Standards. Rothsay uses audit software to strengthen the uniformity of the standard of our engagements.

Our client acceptance and continuance process is instrumental in ensuring that we only accept engagements where we have the competency and capacity to deliver a high standard of work.

We strive to obtain sufficient and appropriate audit evidence and maintain a strong degree of professional scepticism during our audit engagements. The partners promote a culture focusing on audit quality and encourage consultation on complex audit issues. Partners work with the audit team in the planning and execution of all audits.

Given the nature of our listed entities we are satisfied with the effectiveness and functioning of our internal quality control system during the period covered by this transparency report.

INDEPENDENCE PRACTICES

Independence compliance is actively maintained and each partner and staff member completes an annual independence declaration to ensure compliance with the independence standards and statutory obligations applicable to each engagement. These standards include those issued by the Accounting Professional and Ethical Standards Board (APES) in Australia.

The firm most recently conducted an internal review of its independence compliance on the 31st July 2018.

Prior to acceptance of a new client, conflict checks are carried out within the firm. All partners and staff are required to notify the firm immediately should any matter occur which would compromise their independence.

EXTERNAL MONITORING

Rothsay is subject to oversight and periodic inspection by the Australian Securities and Investment Commission (ASIC). Their last rigorous inspection occurred during the 2014 transparency reporting period. The reader should not make any assumptions about the scope of, or findings from, any ASIC review.

We believe that an effective and independent regulator is an important part of the Australian financial reporting framework.

We are also subject to peer review by the Institute of Chartered Accountants in Australia in accordance with the inspection program for professional practitioners .

 

FINANCIAL INFORMATION

$

Revenue relating to audit                                           690k

Other services                                                               15k

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Total Revenue                                                            705k

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PARTNER/PRINCIPAL REMUNERATION

Whilst our partners are members of the audit partnership they are remunerated by the service company, Rothsay Consulting Services Pty Ltd. This remuneration may consist of a base salary, consulting fees and other short term incentives.

 

ROTHSAY PUBLIC COMPANY CLIENTS

30 June 2018 reporting period

ADX Energy Ltd                                                             Baraka Energy & Resources Ltd

Bentley Capital Ltd                                                        Breaker Resources Ltd

Buxton Resources Ltd                                                    Cervantes Ltd

Discovery Africa Ltd                                                      Duketon Mining Ltd

Element 25 Ltd                                                             Horseshoe Metals Ltd

Intermin Resources Ltd                                                 JV Global Ltd

Kairiki Energy Ltd                                                          Laurus Energy Ltd

Manhattan Corporation Ltd                                           Metalsearch Ltd

Metavone Ltd                                                               Marenica Energy Ltd

Norwest Energy Limited                                                Orion Equities Ltd

Pacific Bauxite Ltd                                                         Pancontinental Oil & Gas Ltd

Pegasus Enterprises Ltd                                                 Pegasus Mines NL

Pegasus Petroleum NL                                                   Pegmont Mines NL

Pure Minerals Ltd                                                          Queste Communications Ltd

Reward Minerals Ltd                                                     Strike Resources Ltd

Viking Mines Ltd                                                           Yandal Resources Ltd