Each group will select a listed public company from the ASX200.

Your group will identify the major audit risk areas (at least 2) for your selected company.

For each audit risk, your assignment should:

explain the potential impact of the audit risk on the company's financial statements, and

detail the auditing procedures to verify the account balances impacted by the risk

In doing this assignment you should use the concepts you have learnt from this unit and your own research.

Important: you are the independent or external auditors of your selected company and your 'job' is to express an opinion onthe truth and fairness of the accounts or financial statements. Some business risks are material and relevant to the external audit. However, other risks would NOT be material from an external audit perspective, although these risks are important to an audit client. For example, shoplifting by customers in a retail company would not be material from an external audit perspective, although this risk is important to the retail company (the audit client). This is because this risk, to some extent, is not directly related to fraudulent financial reporting.Remember to link the risks back to the account balances you are expressing an opinion on.

Note: While you can do background research etc.,you shouldn't start writing this assignment until after week 3. By this time, you should have a better understanding of what auditing is, based on what you have learnt from the lectures and other learning materials.