Scenario 6

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:

The new changes to the method and requirements for estimating mining ore sales required Bad Eyesight Audits to redesign and recode auditing software used in the audit evidence gathering and evaluation process of mining sales. It also required audit team members to undergo new training and certification in understanding mining sales.

• Type of Risk

• Level of Risk

• Expected Level of Audit Work

• Justification