You are required to complete the report based on the JB Hi-Fi group.

You are required to address the following in your report

1. Identify 3 business risks of The Company, that will increase the risk of material misstatement (specifically inherent risk) at the assertion level for classes of transactions or account balances. For each business risk, identify only 1 class of transaction or account balance (income statement or balance sheet line item), and for each class of transaction/account balance please identify the assertion most (only one) at risk of misstatement. You need to explain why each business risk will lead to a risk of misstatement to the specific class of transaction/account balance and assertion that you have identified.
2. Describe in detail, the appropriate substantive procedure that will address each of the class of transaction or account balance and assertion identified as at risk of material misstatement. The description of procedures must be detailed enough for someone with limited auditing knowledge to be able to carry out the procedures correctly.

Additional Requirements:

Do not repeat the same combination of account balance/class of transaction and assertion in your answers. For example, if you have identified existence of inventory as the assertion and account balance at risk of misstatement for your first business risk identified, do not use existence of inventory for the second and third business risk. You can identify inventory as at risk but for an assertion other than existence; or you can identify existence of a different account balance to be at risk of misstatement. Remember though, that whatever account balance/class of transaction and assertion that is identified as at risk of misstatement, you must logically and convincingly explain why this is the case based on the business risk you have identified.

You must include the following in your report:

a) Titlepage

b) Table of contents

c) Executive summary

d) Introduction

e) Bodyofreport

f) Conclusion

g) References