audit risk assessment

Scenario: You are a senior auditor in the firm of EA Partners. The firm has engaged a new client and has requested you to compile an audit risk assessment of the client. The purpose of the audit risk report is to use it as part of audit planning and preparation. Task: Choose a business in an industry with which you are familiar or in which you are interested. You may be connected to the industry because of a family business, you may have worked in the industry or you may be interested in the industry. College of Business, Law & GovernanceCO5118:03 AUDITING AND ASSURANCE SERVICES Page 9 [Insert Subject Code] You are required to perform an audit risk assessment of the new client using any research means at your disposal. Include in your research information released by the organisation (including its Financial Report), media (news, newspapers, industry magazines) and academic information. Your analysis should include the relevant inherent risks, which may be considered at specific account / cycle level, including your rationale for your assessment. After considering the inherent risks, you are required to discuss what you would expect to see as part of the control environment that may mitigate the impact of those identified risks. The report should be concise, focusing on risks that have audit significance. Choose an appropriate report format and structure that best conveys the findings of your report. Marks are awarded for presentation (please refer to the marking criteria) The report carries 25% of the 30% mark for Assessment Task 2. 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. Further comments: Remember to briefly 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. Although no word limit has been set, the case asks for a concise report. Therefore, other things being equal, the more concisely you can present your results the higher will be your mark. APA 6th refrencing necessary