Scenario 2

Jupiter Mining Ore Limited is a major mining and exploration firm with operations in multiple galaxies. The company is looking to further expand its operations those solely within its core operations. The companys 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:

High profile protests have erupted over the last year against unethical mining practices. To date, the protests have cent-red 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 find alternatives

• Type of Risk

• Level of Risk

• Expected Level of Audit Work

• Justification