Auditors are required to obtain and support an understanding of the client and its environment in...

 

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Auditors are required to obtain and support an understanding of the client and its environment in order to identify business risks. Much of the information needed to identify the risks can be obtained from the company's annual report, 10K, and proxy materials. Additionally, industry information on these companies can be obtained from Web sites such as Google. a) Select a public company and provide a general overview of the company and its industry. Consider the following: I chose Lowe's Company. a. The nature of the entity b. Industry, regulatory and external factors c. Objectives and strategies d. Entity performance measures e. Management f. Governance b) Complete the following table identifying what you believe are the company's business risks. Also, consider industry averages and competitors. Business Risk Audit Area Affected Assertion Auditor Response Valuation Dependence on key products Revenue Consider the effect of lost revenue on entity profitability Auditors are required to obtain and support an understanding of the client and its environment in order to identify business risks. Much of the information needed to identify the risks can be obtained from the company's annual report, 10K, and proxy materials. Additionally, industry information on these companies can be obtained from Web sites such as Google. a) Select a public company and provide a general overview of the company and its industry. Consider the following: I chose Lowe's Company. a. The nature of the entity b. Industry, regulatory and external factors c. Objectives and strategies d. Entity performance measures e. Management f. Governance b) Complete the following table identifying what you believe are the company's business risks. Also, consider industry averages and competitors. Business Risk Audit Area Affected Assertion Auditor Response Valuation Dependence on key products Revenue Consider the effect of lost revenue on entity profitability

Answer rating: 100% (QA)

a Let us Choose Procter Gamble The Procter Gamble Company PG is an American multinational consumer goods corporation headquartered in Cincinnati Ohio ... View the full answer