BUSINESS RISK ANALYSIS PROJECT for Amazon

Client Name: Entity and Environment Category: Objectives, Strategies, and Business Risks Year ended:	Completed by:
	Reviewed by:
Business Risk Factor	Response (Indicate Source)	Possible Effect(s) on the Audit
Does the entity set entitywide objectives and are they supported by strategic plans?
Does the entity have clear objectives in terms of a budget, profit, and other financial and operating goals?
Does the entity have an entity risk assessment process that includes estimating the significance of the risks, assessing the likelihood of their occurring, and determining the actions needed to respond to the risks?

Client Name: Entity and Environment Category: Entity Performance Measures and Monitoring Year ended:	Completed by:
	Reviewed by:
Business Risk Factor	Response (Indicate Source)	Possible Effect(s) on the Audit
What key performance indicators does the entity use to measure performance?
Does the entity benchmark its performance against its industry and major competitors?
Does the entity consider financial analysts research and earnings reports?
Are there communication channels within the entity for individuals to report suspected improprieties?
Does the entity have an internal audit function?
Does the internal audit function have a charter?
Who does the chief audit executive report to?

Client Name: Entity and Environment Category: Management Year ended:	Completed by:
	Reviewed by:
Business Risk Factor	Response (Indicate Source)	Possible Effect(s) on the Audit
Do one or a few individuals dominate management and operating decisions?
Does management demonstrate the appropriate tone at the top, including explicit moral guidance about what is right or wrong? More specifically, has a code of conduct been established that includes appropriate entity policies regarding acceptable business practices and conflicts of interest? Are these policies adequately communicated to employees?
Does management adequately monitor business risks?
Does management encourage that everyday dealings with customers, suppliers, employees, and other parties be based on honesty and fairness?
Has management established and maintained effective internal control over financial reporting?
Is there a motivation for management to engage in fraudulent financial reporting? (Refer to Tables 4-4 to 4-6 in the textbook for a list of specific indicators that might indicate fraudulent reporting.)
Has management adopted sound accounting principles?
Does management adequately consult with its auditor on accounting issues?
Is management willing to adjust the financial statements for misstatements that approach a material amount?
Is there high turnover of senior management, legal counsel, or board members?
Is there a known history of securities law violations or claims against the entity or its senior management alleging fraud or violations of securities laws?