Required: Your submission for assignments 1 and 3 should be in the format below: Potential risk-description General
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Your submission for assignments 1 and 3 should be in the format below: Potential risk-description General and industry-specific economic trends and conditions Competitive environment Product information Customer information Supplier information Technological advances and the effect of internet Laws and regulatory requirements Account (s) Assertion (s) (assignment 3) Level of inherent risk (assignment 3) Given your analysis-for this client- is the overall level of inherent risk "low, "medium" or "high"? Explain. Josh Thomas, Audit Senior, has asked you to research the retail and wholesale footwear industries and report back to the audit team. Your report will form part of the overall understanding of Cloud 9 Ltd.'s structure and its environment. You should concentrate your research on providing findings from those areas that have a financial statement impact and are considered probable given Cloud 9 Ltd.'s operations. In conducting your research, you should consider the following key market forces, as they relate to Cloud 9 Ltd.'s operations. For each area listed below, consider whether that factor could increase the risk of material misstatement in Cloud 9's financial statements. List your potential risks in the table provided. Using the risks identified in assignment 1 on working paper A1-1, complete the following information in the relevant columns of the working paper. • Identify the associated financial account (if you haven't done so already) and assertions that would be affected. • Give an assessment of "high," "medium," or "low" in relation to the likelihood and materiality of the risk occurring. A risk should be classified as "high" if it is highly likely to be present and material. A risk should be classified as "medium" if it may be present and material. Risks should be classified as "low" if they are unlikely to be present and/or not material. Your submission for assignments 1 and 3 should be in the format below: Potential risk-description General and industry-specific economic trends and conditions Competitive environment Product information Customer information Supplier information Technological advances and the effect of internet Laws and regulatory requirements Account (s) Assertion (s) (assignment 3) Level of inherent risk (assignment 3) Given your analysis-for this client- is the overall level of inherent risk "low, "medium" or "high"? Explain. Josh Thomas, Audit Senior, has asked you to research the retail and wholesale footwear industries and report back to the audit team. Your report will form part of the overall understanding of Cloud 9 Ltd.'s structure and its environment. You should concentrate your research on providing findings from those areas that have a financial statement impact and are considered probable given Cloud 9 Ltd.'s operations. In conducting your research, you should consider the following key market forces, as they relate to Cloud 9 Ltd.'s operations. For each area listed below, consider whether that factor could increase the risk of material misstatement in Cloud 9's financial statements. List your potential risks in the table provided. Using the risks identified in assignment 1 on working paper A1-1, complete the following information in the relevant columns of the working paper. • Identify the associated financial account (if you haven't done so already) and assertions that would be affected. • Give an assessment of "high," "medium," or "low" in relation to the likelihood and materiality of the risk occurring. A risk should be classified as "high" if it is highly likely to be present and material. A risk should be classified as "medium" if it may be present and material. Risks should be classified as "low" if they are unlikely to be present and/or not material.
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Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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