TASK $2$ of $2$

$($a$)$ FOR NON$-$CIMA STUDENTS ONLY

The audit manager had a planning meeting with the audit partner in charge of

the audit of LamLam Hub $($Pty$)$ Ltd for FY$2024,$ in which they discussed the

assessment of the risk of material misstatement at the financial statement level.

The audit senior is now formulating a response to address the assessed risk.

Based on the information provided in the case study $($which is known to the audit

team$)$ you are required to:

discuss the effect of the information provided on the auditor's assessment of

the risks of material misstatement at the financial statement level, and

describe the auditors' response to address the assessed risk of material

misstatement at the financial statement level.

$($b$)$ FOR CIMA STUDENTS ONLY

The CEO is preparing for his strategy meeting with the board. He has identified

that the data breach has increased the business risk of LamLam Hub $($Pty$)$ Ltd$,$

specifically:

Reputational damage and loss of customer trust

Legal and regulatory repercussions

Operational disruptions

Weak corporate governance in relation to ethics

Potential future data breaches

Assist the CEO by discussing the impact of the above on business risk and the

steps that the management of LamLam may take to address each of these

elements of business risk.