Topic /Title
Risk assessment report
Subject
->->AUDITING AND ASSURANCE SERVICES
2000
Referencing Style
APA
Number of References
10
Requirements
Scenario: You are a senior auditor in the firm of EA Partners. The firm has decided to take on a new client and has requested you to compile a risk assessment report on the firm, as part of the initial stage of the audit plan and preparation. You have been chosen to undertake the analysis because you are familiar with the industry in which the firm is situated and your fellow seniors believe this will give you an advantage when uncovering the inherent risks of the new client. Your fellow seniors look forward to reading your report. After you have given your report to the other seniors, they decide that your team will be handling the audit. The second part of the assignment is to give a briefing to your team about the new client.
Task: Choose an industry with which you are familiar. You may be connected to the industry because of a family business, you may have worked in the industry or you may be very interested in the area. You are required to build a risk assessment of the new firm using any research means at your disposal, however you should include in your research information released by the media (news, newspapers, industry magazines) and academic information. After you have uncovered the relevant inherent risks, you are required to suggest suitable controls that may mitigate the impact of those risks on the firm. The report should be concise and attracts 25% of the 30% mark.
Important: You may not approach any employee or manager of any business and speak to them. You may not represent to an employee or manager that you are undertaking research for any institution, including James Cook University.
Further comments:
Remember to describe your industry and the firm to which the report relates
All sections should refer to the appropriate standards, and standard paragraphs. The standards should be integrated into the document in a cohesive way.
You should use an appropriate format for the report. A letter of transmittal is not required.-It should not be an audit report
- just a normal report including the introduction and conclusion
-understand the inherent risks
And what sort of controls to mitigate
- take an individual business :
Industry risk
Nature of client
Nature of business
- inherent risks
- control risks
- use headings of factors affecting inherent risk
- factors to design audit program
Risk
Materiality
Evidence
- focus of accounts that are difficult
Key risk areas . Eg: inventory
Take using balance sheet and income statement
REPORT FORMAT
Structured - intro
headings
Scope and background
Use marking criteria provided on subject outline
2000 words
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