Auditing risks

Jupiter Mining Ore Limited is a major mining and exploration rm with operations in multiple galaxies. The company is looking to further expand its operations those solely within its core operations. The company's total assets exceed $100 billion, liabilities of $45 billion, and annual sales close to $200 billion. The preferred auditor is Bad Eyesight Auditors. Required: Consider the following scenarios independently to determine the type of risk, level of risk and extent of audit work that may be necessary: Expected Level Scenario Type of Risk Level of Risk of Audit Work Justication Regulators have recently changed the method and requirements for estimating mining ore sales. The new requirements needed Jupiter Mining Ore Limited to recode signicant areas of its electronic recording system. The new requirements, however, did not require additional training of existing accounting staff. High prole protests have erupted over the last year against unethical mining practices. To date the protests have centred predominantly on the operations of competitors of Jupiter Mining Ore Limited. Many planetary governments, in response to the protests have begun to introduce major reforms whilst many customers have indicated a strong desire to nd alternatives. Due to changes in mining regulations and rules governing accounting for mining operations, Jupiter Mining Ore Limited had to signicantly change the role and responsibilities of its internal audit teams, and internal audit processes during last year with some issues still unresolved