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.