Internal control, audit risk model and evaluating auditing theories Conduct a wild research on Tabcorp Holdings Limited,
Question:
Internal control, audit risk model and evaluating auditing theories
Conduct a wild research on Tabcorp Holdings Limited, identify some of the possible key internal control issues associated to this company. Since you will not have access to the company’s internal information, this question will be marked based on your reasonableness and sound research on the industry to identify any plausible internal control risks that could arise in the company/the industry the company operates in. identify at least three internal control risks that may possibly lead to misstatement in the financial statements of your client. Based on your analysis identify inherent risks in the company and prepare an audit risk matrix to map out the Detection risk matrix an example is given below
Inherent risk
Control risk
Detection risk
Inherent Risks | |||||
Risk no. | Inherent risk identified | Accounts at risk | Explanation of the inherent risk and accounts at risk | High or Low risk | Detection risk |
1 | |||||
2 | |||||
3 | |||||
4 | |||||
Internal Control Risk | |||||
Risk no | Internal control risk | Accounting cycle impacted | Explanation of the control risk | High or Low risk | Detection risk |
1 | |||||
2 | |||||
3 | |||||
4 |
Evaluate the importance of assurance risk in establishing a sustainable business practice. Use the auditing theories (agency theory, insurance hypothesis or information hypothesis) to explain your selected detection risk and how it will help in ensuring the sustainability of the business.
Note:
Minimum of six references
Word limit - 850
Use Harvard reference styles for both in-text and reference lists.
Please make sure you use the company website, financial statements, and all publicly available information, and carry out quality research by relying on journal articles that provide reliable information on the industry and the theories of audit.
Project Management A Managerial Approach
ISBN: 978-0470226216
7th Edition
Authors: Jack R. Meredith, Samuel J. Mantel,