Assumption of Risk in Skiing Accident Case

Stryker Corporation Audit Planning Memo Analysis
Stryker Corporation Audit Planning Memo
Mark Bishop
Walsh College
Stryker Corporation Audit Planning Memo
BACKGROUND AND IMPORTANT INFORMATION
Ernst & Young (EY) has been selected by the audit committee of Stryker Corporation to perform their annual company audit for 2016. Stryker was
established in Michigan in 1946 by Dr. Homer H. Stryker, a successful and well–known orthopedic surgeon and the inventor of several orthopedic
products. The company manufactures numerous medical and surgical equipment and sells most of their products in the United States directly to
doctors, hospitals, and other healthcare facilities. Stryker's products are also sold in over 100 countries throughout the world with 27% of company
sales taking place outside the United States (Stryker Form–10k, 2016, p. 1). The Chairman and Chief Executive Officer of Stryker is Kevin Lobo. He
served as president of numerous medical companies before joining Stryker in 2011. The Vice President and Chief Financial Officer of Stryker since
2016 is Glenn Boehnlein. He joined the company as Vice President of Finance in 2003. As of January 31, 2017, Stryker had 2,988 shareholders of
common stock ("Company Overview of Stryker Corporation," 2017).
MATERIALITY
When management at EY assessed the materiality of the engagement, they took into consideration numerous factors and business risks. The most
important risk factor that drove materiality in this year's engagement was
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The Impact Of Movie R Us 's New Business Strategy
TO: Engagement Partner of Co. CA
FROM: Junior Accountant
DATE: June 18, 2015
SUBJECT: Impact on Movies R US audit
I am writing you to analyze the impacts come from the Movie R US's new business strategy. Because this client decides to enter a new industry, this
decision will affect our current year audit a lot.
As you know, our company has been audit Movies R US for eight years, and it is a public company. Now Movies R US wants to change almost all
its business model, from DVD rental into online movies download. This means this client needs new IT department to maintain its download
application; it needs to dispose of inventories, because Movies R US decided to close 40 of their 50 stores. This new situation will force us to
change our traditional audit process. Since this public company decided to reform its business model, the financial statement's users will be more
dependent on audit report we provide to them. Therefore, our auditors need more investigation for this client. As I mentioned before, Movies R US is
one of our old clients, we know this company. But we still need in–depth investigating its new business model, controls and risks. In the final, we might
have to change our audit report due to the brand new investigation result.
The following steps are what we need to follow, these steps will explain how we operate our new audit process.
Preplanning
Before deciding whether to continue working with this client, we should conduct independence threat analysis. As

Toy Central Corporation Case Study
Purpose
The purpose of this memo is to document and evaluate the business risks faced by Toy Central Corporation (TCC), as well as audit risks, accounting
issues identified, and management assertions affected. Business Risks Facing TCC
There are various business external risks facing TCC affecting the supply and demand for products, target customers, supplier/retailer issues. There are
also internal risk factors which affect...
A reduction in shelf space and warehouse space could reduce TCC's revenue and increase transportation and storage expense due to the amplified
turnaround time on processing orders.
Merging TCC's digital division with Open Game is risky for a several reasons: o It is startup company without any product yet, ... Show more content
on Helpwriting.net ...
This could motivate management to misstate the sales.
Therefore, the inherent risk for the audit of TCC may be considered moderate/high.
Control risk associated with the audit also appears to be moderate based on the findings from interim audit procedures conducted in July and
August 2007. The controls in place were found to be effective. o Purchase/payables/payment system: Based on a sample of 75 cash disbursements
we concluded that the controls were operating effectively. Cash disbursements were made for purchases of raw materials from suppliers in
Taiwan, and traced back to be properly converted to U.S. dollars and classified to the appropriate accounts. o Receivables system: Five transactions
were selected at random from the first three quarters of fiscal 2007 and we found that TCC's authorization controls over bad debts and recoveries
were effective. However, based on information provided by prior year 2006 audit file of the bad debt owed by Kmart and the inability to pay there
should be a further investigation into the recovery of the bad debt owed by Kmart in 2007. o Inventory: A physical count of inventory of ActoВ®
action figures on July 31, 2007 was completed by an audit staff member and found all items produced by TCC were included in the inventory records.
However, there should be a follow–up done with the audit staff member based on her comments on the

Five HO Concepts
The importance of having a risk management program within a quality improvement program within a healthcare organization is to ensure reliability
with performance along with preserving the safety of the services offered and minimize the overall risk to the organization. High–reliability
organizations (HROs) have incorporated reliability within their operations processes to address real possibilities of catastrophic failures (Pavkovic,
Goetz, Prachand, & Stanley, 2011). There are five HRO concepts that are utilized within healthcare organizations to ensure patient safety andrisk
management performance:
Sensitivity to operations – Leaders and staff members should have constant attentiveness to potential risks and prevention in order to preserve ... Show
more content on Helpwriting.net ...
Resilience – When system failures occur, leaders and staff members should know how to respond appropriately to the situation (Pavkovic et al., 2011).
Within every healthcare organization, there are inherent risks to patient safety, in addition to situations that must be planned for in order to decrease
risks. "HRO concepts facilitate a systems–oriented problem–solving focus and response" (Pavkovic et al., 2011, p. 346). By utilizing HRO concepts,
leaders exercise analysis to gain knowledge and potential lessons from situations within the organization (Pavkovic et al., 2011). Healthcare
organizations benefit from this knowledge by developing and implementing risk management plans proactively, so when an issue occurs, patient and
organizational safety is preserved. In the event that a safety incident occurs, staff members and leaders will be better prepared in handling the situation
effectively with a plan in place than trying to troubleshoot and control the situation as it is transpiring. Through addressing potential risks proactively,
the integrity of the healthcare organization will be preserved as well as the overall safety of the

Audit Planning and Risk Assessment
ACCA Paper F 8
AUDIT AND ASSURANCE SERVICES (INTERNATIONAL STREAM)
Lecture 2
Audit Planning and Risk Assessment
DATE:December 2012
TUTOR:Feroza Cooper
ISA 300 AUDIT PLANNING
Auditors should plan the audit so that the engagement is conducted in an effective manner.
The objectives of planning include:–
Directing appropriate attention to the different areas of the audit such as assessing materiality, so that when the detailed audit plan is prepared, audit
procedures can be directed towards the material amounts. Identify potential problems or risks so that they can be resolved at an early stage. Facilitate
review and control of the audit. ... Show more content on Helpwriting.net ...
The auditor must obtain an understanding of the entity and its environment, including internal controls, so that they can identify and assess the risks of
material misstatement on financial statements due to fraud or error and design and perform further audit procedures.
The objective is to ensure that auditors obtain sufficient knowledge of the business of the entity to enable them to identify and understand the events,
transactions or practice that may have a significant effect on the financial statements or the audit. This knowledge of the business helps to assess the
levels of control and inherent risk and to determine audit procedures.

Procedures to follow:– Enquiry of management Analytical procedures. Observation and inspection.
Advantages of Risk Assessment Ensures that attention is focused early on the areas most likely to cause material misstatements. Allows auditor to
fully understand the entity. Allows the auditor to identify unusual transactions or balances as early as possible so that these could be addressed in a
timely manner. Permits the audit team to focus on key areas. Ensure that an experienced team is selected with more experienced staff allocated to
higher risk audits and high risk balances. Reduces the risk of an inappropriate audit opinion being given. Permits the auditor to have a good
understanding

Assumption of Risk
In the Dillworth v. Gambardella, 776 F. Supp. 170 (D. Vt. 1991) is a case where the
Plaintiff sues a skier that feel and thereby knocking down the plaintiff who feel and injured his back. The jury came back with a defendant verdict and
the plaintiff п¬Ѓles a motion for a new trial on the grounds that the court made an error in instructing the jury as to the Vermont Sports
Injury Statute and its relation to the doctrine of assumption of risk and the applications to this case. The appellate court denied their motion for a new
trial and stated "that the sports injury statute applied to participants in any sport." The Assumption of Risk doctrine states that
"when a risk or danger is obvious such that it is widely known by reasonable ... Show more content on Helpwriting.net ...
This inheritance of assumptions of risk and if the action is applicable to the case is a question of fact for the jury, and therefore the jury in this matter
found it applicable, which was not thereby applicable for a new trial.
The jury in the Dillworth matter applied the assumption of risks to all participants in sports, not just the operators of ski resort. In regards to dangerous
activities and sports in general the court stated that
"when a primary assumption of the risk exists there is no liability to the plaintiff because there is no negligence on the part of the defendant to begin
with; the danger to the plaintiff is not one which the defendant is required to extinguish or warn about. Having no duty to begin with, there is no
breach of duty to constitute negligence," showing that even other participants not just those in charge of the activity can not be negligent for risks that
are inherent to the activity. This assumption of risk has a broader appeal than just skiing and was stated that "A person who takes part in any sport,
including skiing, accepts as a
Torts & P.I. PLG–101–1601
Assignment 4– CAW
Page 2
matter of law the inherent dangers of the sport insofar as those dangers are obvious to the participants and necessary to the conduct of the sport."
If the assumption of risk was not applicable in this activity then there would be an ability to п¬Ѓnd comparative negligence with a participant or
coordinator of the activity,

Case Study Question Unit 3
JUST FOR FEET, INC. CASE STUDY QUESTIONS 1) Prepare common–sized balance sheets and income statements for Just for Feet for the period
1996–1998. Also, compute key liquidity, solvency, activity, and profitability ratios for 1997
–1998. Given these data, comment on what you believe
were the high–risk financial statement items for the 1998 Just for Feet audit.
2) Just for Feet operated large, high–volume retail stores. Identify internal control risks common to such businesses. How should these risks affect the
audit planning decisions for such a client?
Some internal controls risks common to high–volume retail stores would be theft of inventory, inventory accounting methods, false accounts receivable
confirmations, separation of ... Show more content on Helpwriting.net ...
Deloitte did propose an audit adjustment to increase the reserve, but the client rejected it and Deloitte did nothing about that. They also never questions
or investigated.
The next most important is the large increase in vendor allowance receivables. This is important because it was a huge increase that was recorded in
just the last few weeks of the year. Deloitte responded properly by requesting supporting documentation for $11.3 million of undocumented allowances.
However, did not do anything when they never received the information.
Next is the nonstandard and ambiguous receivable confirmations. Deloitte accepted the letter instead of investing and looking for fraud. Next to last is
the monthly booth income accounts. Deloitte did not perform further analysis to determine the basis and property of the booth income journal entries
and just accepted the executive's statement that they had no impact on net income, when in fact there were $9 million of nonexistent booth assets.
Last was the emphasis on earnings. The CEO directed employees to increase the good and decrease the bad to meet his own earnings expectations
and of Wall Street analysts. Deloitte needs to look at expectations of earnings and find out what areas could be risky for fraudulent financial reporting
to meet those earnings. 5) Put yourself in the position of Thomas Shine in this case. How would you have responded when Don–Allen Ruttenberg
asked you to send a false confirmation to

An Audit Risk Assessment On Telstra Corporation Limited...
Contents
Introduction2
Telecom Industry:3
Audit Risk Assessment3
Audit Risk Model3
Inventory Valuation Risk3
Intangible Asset valuation risk4
Foreign Currency Risk4
Tax Risk4
Compliance Risk4
BUSINESS RISK4
Liquidity Risk: The liquidity risk of Telstra can be analysed from the help of these two ratios5
Quick Ratio5
Current Ratio5
Control Risk:5
Inventory and Warehousing cycle:5
Sales and collection cycle:5
Payroll and personnel cycle:6
Acquisition and Payment cycle:6
Capital Acquisition Cycle:6
Planned Detection Risk:6
Analytical Procedures:6
Recommendation:6
Conclusion7
References:7
Introduction:

This project presents an audit risk assessment on Telstra Corporation Limited using advanced accounting techniques... Show more content on
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It has three components viz. inherent risk, control risk and detection risk.
In today's world, the role of IT has turned accounting estimated critical in financial reporting and disclosure. Houghton and Fogarty have said that
non–accurate or incorrect estimates have often caused to misstatements in audit report (Gray & Manson, 2007).
Audit Risk Model
Audit Risk Assessment can be done by this Audit Risk Model. This model consists of 3 types of risks i.e., inherent risk, control risk and detection
risk. Eventually, audit risk is a product of these 3 types of risks (Griffiths, 2012).
Inherent risk:
It is the susceptibility of an account balance or a class of transactions to a material misstatement, assuming that there were no internal controls. The
inherent risk at Telstra is that there may be certain types of misstatements that may not be identified during the course of audit. The inherent risk
associated with the audit of Telstra is ascertained based on the nature of the business. Telstra Corporation Limited have these kinds of risks:– inventory
valuation risk, intangible assets valuation risk, foreign currency risk, interest rate risk, tax risk, amendment risk and compliance risk. All the above
stated risks pose potential material misstatements on the financial statements and thus need to be addressed (Telstra

Essay on Plasic Surgery
Nature of Plastic Surgery
A nip here, a tuck there and now science is making it easier to change the appearance of one's self. It's called plastic surgery and now more than ever
people are taking part in these risky surgical producers. Not only are there obvious risks taken on one's self when the decision is made but risks are
also taken when it comes to the impact on family, friends, and the doctors performing these dangerous acts. Therisks associated with plastic surgery
makes this procedure a bad decision.
When a patient decides to go through with the procedure him/her is notified of the shocking and even deadly risks associated with the surgery. Plastic
surgery complications can range from scarring to fatalities and the effects of ... Show more content on Helpwriting.net ...
Another risk associated with plastic surgery is what your friends and family will think. There is always the chance that they will view you in a
different light. A risk is that they will treat you completely different then they did before or have a change in opinion not only of your appearance but
also your character.
Mistakes by doctors are becoming a popular topic of conversation and another risk to say no to plastic surgery. Doctors, like everyone in the world,
make mistakes. Unfortunately however these mistakes can cost thousands of dollars to correct if correctable at all. The carelessness of a doctor and
the inherent risks of any surgical procedure all also present in plastic surgery.
The risks associated with plastic surgery makes this procedure a bad decision. The personal risks are the biggest downfall of plastic surgery. The
high cost and endless list of complications are reasons not to make the decision to get plastic surgery. After one does go through with the procedure
the risks of family and friends being displeased with the outcome is also a pitfall. Last but certainly not least the mistakes by doctors are all reasons
why people could be proud of their image and why they should stand clear of any operating rooms. Plastic

Mcclain Plastics
Abstract
McClain Plastics has grown significantly and requires reevaluation for future audit procedure to accomplish an efficient and effective audit of the
financial statements. In previous audits, control risk has been set to the maximum of 100% and extensive analytical procedures and focus on the balance
sheet accounts was sufficient. The substantive approach is less economical now that the company has grown large enough to require an audit of
controls as well. New audit plans must consider the advantages of reducing control risk compared to the previously used substantive approach and the
advantages of the substantive approach compared to the reducing control risk approach. The risk model helps to guide the test of details risk
requirements ... Show more content on Helpwriting.net ...
Time spent on testing controls will more than offset the reduced tests of details of the balance sheet accounts, according to Sessions (435). Also,
Sessions suggests this method is more efficient for fulfilling the PCAOB requirements for the company since, though it is not a public company,
McClain Plastics has grown large enough to undergo an integrated audit of the financial statements and internal control over financial reporting (435).
The audit program identifies internal controls in all major transaction cycles and also tests of controls, which may include gathering evidence through
inspection, observation, inquiries of the client, and reperformance (406). For example, the auditor can test controls and reduce control risk by
observing that inventory is handled according to policy and only accessible to authorized personnel. If the results are satisfactory, substantive tests can
be reduced because internal controls are functioning as intended and appropriately reduce the chances of material misstatement. The auditor can also
offer suggestions to improve internal controls if weaknesses are discovered during the audit

Audit Of A Dog Foods, Inc.
Sean Raczkowski
Acct 555
Course Project
Audit of Smackey Dog Foods, Inc.
The audit of Smackey Dog Foods, Inc. involves high business risk, inherent risk, risk of fraud, and control risk. The engagement should be cautiously
considered and performed with a high degree of professional care. The eight stages of planning the audit help to identify the risks involved, areas of
concern specific to the Company, and methods that can be used to reduce the audit risk to acceptable levels. The eight stages are considered in detail
below.
Stage I: Acceptance of the Engagement
The first audit planning activity involves the decision of whether to accept the audit engagement. For several reasons, the engagement with
Smackey Dog Foods, Inc. may expose Keller CPAs to undue liability. However, as the Company will not be filing financial statements with the
SEC, liability will be limited to foreseen and foreseeable users and the Company itself. We will look at a few specific items in some detail. Smackey
Dog Foods, Inc. is a relatively young and rapidly growing company. With sales growth that is far outstripping their competitors and expanding
operations, the company is in a vulnerable period. The majority of small businesses go bankrupt within the first five years of operation, and the course
that the Company follows now has the potential to be either beneficial or disastrous. As management is basing their decision expand on projections
developed by the sales teem, the accuracy

Audit Risk in the Brave New World
Audit & taxation| Audit Risk in the Brave New World| Audit Risk Model| | | 6/27/2010|
Submitted To:
MR. Asim Khan
Submitted By
Bilal Khalid
INTRODUCTION
The audit risk model has provided a conceptual framework for auditing practice for more than 40 years. Despite practical difficulties in implementation
and criticisms of its theoretical foundation, the model has been fairly effective in helping auditors analyze risks and use that analysis to determine the
nature, timing, and extent of audit procedures (especially substantive procedures) in audits of financial statements. The audit risk model provides a
conceptual framework for the risk assessment standards.
In recent years, auditors have tried to apply the ... Show more content on Helpwriting.net ...
These are: * ISA 315, Understanding the Entity and its Environment and Assessing the Risks of Material Misstatements * ISA 330, The Auditor 's
Procedures in Response to Assessed Risks * ISA 500 (Revised), Audit Evidence.
The requirements in these newly–issued risk standards represent significant changes to the standards governing audits of financial statements. They
enable the auditors to focus more clearly on areas where there is a greater risk of misstatement of the financial statements. The belief is that these risk
standards will increase audit quality. This is as a result of better risk assessments through a more detailed understanding of the entity and its
environment, including internal control, and improved design and performance of audit procedures to respond to assessed risks of material
misstatements. The improved linkage of audit procedures and assessed risks is expected to result in a greater concentration of audit effort on areas
where there is a greater risk of material misstatements.
The scope of each of the risk standards is reflected in the introduction to the standards, and can be summarized as follows.
ISA 315
This standard provides guidance on performing audit procedures to obtain a broader understanding of the entity and its environment, including its
internal control, and on assessing risks of material misstatement. The IAASB recognises that there may be specific considerations relevant to the audit
of small

Moral Hazard in Banking Essays
Moral Hazard in Banking Moral hazard is an asymmetric information problem that occurs after a transaction. In essence, a lender runs the risk that a
borrower will engage in activities that are undesirable from the lender's point of view, making it less likely that the loan will be paid back. Gary H.
Stern's article, "Managing Moral Hazard with Market Signals: How Regulation Should Change with Banking", addresses the moral hazard problem
inherent to the financial safety net provided by the government protection of depositors. Interest rates do not reflect the risk associated with bank
activity, which in turn causes banks to finance higher–risk projects with price tags that are not parallel to the risk level. A solution... Show more content
on Helpwriting.net ...
After the passage of the FDICIA, two trends have emerged that have further exacerbated efforts in regulating moral hazards. The first trend is
increased asset concentration among larger banks. Over time, more assets have flowed into fewer banks, and as a result more TBTFs were
incubated in the process. The second trend to emerge is increased complexity of banks. Increase of bank sizes involved not only structural growth
but also geographic reach. Larger banks begin to offer a greater scope of offerings. With this plethora of change amid increased sizing, new skills
needed to be developed in order to manage the new risk. The complexity and size of banks and their associated offerings caused a greater level of
asymmetry between regulators and bank managers.
Opponents of the safety net provided by the government have offered several alternate options, one of which is little government intervention, if at all.
Such Laissez Faire approach, according to Stern, is that they do not credibly address the potential for instability in the banking system nor the TBTF
problem. The absence of a federal safety net creates the potential for bank panics which would have a substantial cost to our economic system.
Privatization will not eliminate the expectations in the material market making risk harder to price. Under the suggested system,

Review Of Golden Bear Golf, Inc
Further to your request we have prepared a report on the findings from the audit file of Golden Bear Golf, Inc (Golden Bear).
We believe Golden Bear's major issue for the 1997 audit is management integrity with in their wholly owned subsidiary, Paragon International
("Paragon"). This issue impacts both audit risk and inherent risk when determining the overall acceptable audit risk. A major concern is Paragon's
executive incentive compensation package as it includes the possibility to earn a sizable bonus if certain operating benchmarks are met. Additionally
John Boyd, Paragon's President and Principal Operating Officer has been granted a large number of Golden Bear stock options. This could lead to the
intentional inflation of construction completion targets specifically in relation to construction revenues.
1997 Golden Bear Audit
Risk Assessment
One of the risks for the 1997 audit is revenue recognition. This is an important risk for the audit because Paragon is constructing many new facilities,
and how they record/allocate revenues for contracts were been questioned and are not in line with industry standards. Paragon has recorded costs on
construction projects that did not exist or were not yet at the percent of completion being charged to the customer, this led to the creation of fictitious
revenues. Boyd and Curbello caused the material understatement of costs by knowingly ignoring cost estimates in order to
1.conceal losses resulting from its practice of

Horses
ARISING OUT OF OR BEING CONNECTED IN ANY WAY WITH THE BOARDING OF SAID HORSE(S), EXCEPT IN THE EVENT OF
NEGLIGENCE ON THE PART OF STABLE, ITS AGENTS, AND/OR EMPLOYEES. This includes, but is not limited to, any personal injury or
disability the horse Owner, or Owner's guest, may receive on Stable's premises.
The Owner fully understands that Stable does not carry any insurance on any horse(s) not owned by it for boarding or for any other purposes, whether
public liability, accidental injury, theft or equine mortality insurance, and that all risks connected with boarding or for any other reason for which the
horse(s) in the possession of, and on the premises of Stable are to be borne by the Owner. Stable strongly recommends equine ... Show more content on
Helpwriting.net ...
10. Changes or Termination of This Agreement. It is agreed by the parties that this Agreement may be changed or terminated upon thirty (30) days
notice, regardless of the rental period. All notices must be issued in writing unless otherwise agreed upon by the parties. The posting of updated rate
schedules in a conspicuous or open place in Stable's office shall constitute notice of any and all rate changes or regulation changes as may be deemed
appropriate by Stable.
11. Rules and Regulations. The Owner agrees to abide by all the rules and regulations of the Stable. In the event someone other than the Owner shall
call for the horse(s), such person shall have written authority signed by the Owner to obtain said horse(s).
12. Right of Lien. The Owner is put on notice that Stable has a right of lien as set forth in the laws of the State of South Carolina, for the amount due
for the board and keep of such horse(s), and also for storage and services, and shall have the right, without process of law, to retain said horse(s) until
the amount of said indebtedness is discharged. However, Stable will not be obligated to retain and/or maintain the horse(s) in question in the event the
amount of the bill exceeds the anticipated unregistered value of the horse(s). In the event Stable exercises Stable's lien rights as above–described for
non–payment, this

Case Study : Pacific Star Network Ltd
ASSIGNMENT
BAO5524 PROFESSIONAL AUDITING
PART B
Semester 1, 2016
1.Executive summary
Pacific Star network Ltd (PNW) is an ASX listed company, which is located in Melbourne. They do broadcasting of four channels on radio. PNW
acquired Morrison Media Services Pty Ltd in December 2014. Morrison Publish Frankie, Spaces, Smith Journal, Slow Living, White HORSES,
Surfing Life and SEN inside football. The Company have one chairperson, one CEO, One Director and 4 non–executive directors.
This report plans the audit for the company Pacific Star Network Limited. This report covers only the first stage of an audit that is risk assessment.
Planning of an audit requires that the auditor plan their audit by assessing the risk elements and try to reduce that risk using different audit risk
procedure calculations. This report tells about the accounts, which have the most risk of being materially misstated in the Balance sheet and Statement
of financial position of the company report of the year 2015 and 2014. For identify the misstated account, simple comparison analytical procedure is
used. This report also set the materiality level for the purpose of audit. Therefore, the reason for material misstated can be identify. 2.Introduction
Audit planning is the important part of audit process conducting at the beginning of the audit process. This process involves the collecting of
information about the client and their business, recognize

Robert Barquero Case
Robert Barquero Initial Post
1. Based on the information provided in the case, which of these three conditions appears to be most prevalent, and why?
According to paragraph 65 of AS 12, "fraud risk factors are events or conditions that indicate (1) an incentive or pressure to perpetrate fraud, (2) an
opportunity to carry out the fraud, or (3) an attitude or rationalization that justifies the fraudulent action." It is important to note that these three factors
do not necessarily indicate the existence of fraud; however, they often are present in circumstances in which fraud exists.
Based on the case information, pressure appeared to be the dominant factor. Qwest was experiencing substantial pressure as a result of the competition.
The regulatory ... Show more content on Helpwriting.net ...
Next consider revenue earned in the construction services and the communication services businesses. Do you believe that any of the different types of
revenue earned by Qwest might be subject to significantly differing levels of inherent risk? Why or why not?
I strongly believe there is a level of risk in any company with multiple revenue streams. This is the case for Qwest and their construction services.
These services are not ordinary in the normal course of business. However, their communication services are normal in the source of business. Thus,
the level of risks is different because there is a difference in familiarity.
Reference:
PCAOB (December 15, 2010). Auditing Standard 12 (Paragraphs 65–66). Retrieved from http://pcaobus.org/Standards/Auditing/Pages
/Auditing_Standard_12.aspx
PCAOB (December 15, 2010). Auditing Standard 8 (Paragraphs 5–8). Retrieved from
PCAOB (December 15, 2010). Auditing Standard 12(Paragraphs 7–10). Retrieved from http://pcaobus.org/Standards/Auditing/Pages
PCAOB (December 15, 2010). Auditing Standard 13 (Paragraphs 8–10). Retrieved from http://pcaobus.org/Standards/Auditing/Pages
PCAOB (November 15, 2007). Auditing Standard 5 (Paragraphs 29 and 32). Retrieved from

Audit & Assurance
Part 1
The purpose of Part 1 is to perform preliminary analytical procedures. You have been asked to focus your attention on two purposes of analytical
procedures:
Assess going concern and
Indicate where there is an increased likelihood of misstatements
Required for Part 1
Calculate at least ten ratios that are useful to assess going concern using Heritage's financial statements, which are located on Blackboard, appendix 1 &
2. Document the ratios in a format similar to the following:
Ratios200920082007 Current assets44,497
Current ratio:Current liab.25,9261.72Debt to equity Net income before tax/sales Gross margin % Inventory turnover Interest to debt Gearing (10 Marks)
Explain ... Show more content on Helpwriting.net ...
You conclude the turnover is only present at the higher–level positions.
While reviewing Heritage's long–term debt agreements, you identify several restrictive covenants. Two requirements are to keep the current ratio above
2.00 and debt–to–equity below 1.00 at all time.
While reading the footnotes of the previous years financial statements, you not that one customer, Auto–Electric, accounts for nearly 15% of the
company's accounts receivable balance. You investigate this receivable and learn it has been outstanding for several months.
The engagement partner from your ACCA firm called today notifying you that Brain Sioux, an industry specialist and senior tax manager from the
firm's Ontario office, will be coming on site to Heritage's facilities to investigate an ongoing dispute between the Internal Revenue service and Heritage.
A member of your ACCA firm, who is currently on site in Detroit at Welburn division, calls you to see how everything is going while you are visiting
Solar–Electro in Texas. During your conversation, he asks if you know anything about the recent inter–company loan from Welburn to Solar–Electro.
During discussions with the Heritage controller, you learn that Heritage employees did a significant amount of construction work for a building

addition. The controller stated that the work was

Executive Summary : ' Austral Pvt. Ltd Contracts With...
Executive Summary
Austral Pvt. Ltd deals with import and exporting food product in various part of globe. Dairy, fish, meat and seafood product are the product they trade
with. The firm would have the greatest competitor risk in import and export business is the duplication and quality of goods. These competitors
company advantage of the lower cost of expenses such as materials, Inventories and labour cost to produce the product to the same consumer market.
Natural risks if they mentioned, then earthquakes, floods, landslides and storms were decrease consumer, delay the transportation and deliver and
distribution of products. In case of food products maintaining quality of food become most challenging part. However, misstatement of accountability
is negatively impacting on financial position of company.
Risk assessment, evaluation risk and the impact of the risk on the controlled environment of an import and export industry identification of the inherent
risk. However, the auditor needs to plan for reduction in risk and to improve productive approach for present and in the future in two ways:
Firstly, identify the inherent risks of import and export that effect to the firm related to financial statement and the overall performance. Secondly,
auditor should study internal control which further will understand the control systems of the organization.

A Case For Breach Of Agreement
At the point when the carrier acknowledges conveying risky goods, he acknowledges conveying the danger. This does not mean the shipper will not
be liable. When both parties know the nature of goods and something goes wrong, the case resembles some other cargo case. If the shipper has told the
carrier of the hazardous nature of the load, the shipper cannot be absolved from risk in the event that he is careless in satisfying obligations on his part
and neglecting to take important precautions.
4.5Extent of Liability
Hague/Hague–Visby Rules Article IV/6 contains that ''... the shipper of such goods shall be liable for all damages and expenses directly or indirectly
arising out of or resulting from such shipment...'' Does the expression ' 'directly or indirectly ' ' subject to the shipper to a risk more than that which
would apply on account of a common case for harms for breach of agreement or for a legally binding indemnity? It is battled that the words did not
influence the operation of the customary standard that, without a reasonable procurement in actuality, a man cannot uphold an indemnity where one of
the viable purposes of his misfortune is his own wrongful demonstration. The law has built up various principles with the end goal of constraining
harms for breach of agreement. As needs be, no misfortune might be recuperated by a method for harms on the off chance that it is an excessively
remote result of the breach. In contracts, the test of remoteness is whether the

Different Types Of Different Risks In An IT Audition
Other Risks. There are different types of risks in an IT setup which are supported by segregation of duties outlines and formats. Audit risk is a risk that
the auditor will issue an unqualified opinion. Being a major aspect prone to fraud, audit risk entails material error can be hardly identified and can go
undetected during an information financial audit report. The audit risk however has different classifications. Inherent risk– The risk that an error exists
that could be material or significant when combined with other errors encountered during the audit, assuming that there are no related compensating
controls. Inherent risk can also be categorized as the susceptibility to a material misstatement in the ... Show more content on Helpwriting.net ...
Overall audit risk– the combination of individual categories of audit risks assessed for each specific control objective. An objective in formulating
the audit approach is to limit the audit risk in the area under scrutiny so the overall audit risk is at a sufficiently low level at the completion of the
examination. Another objective is to assess and control those risks to achieve the desired level of assurance as efficiently as possible.
As much as this risks are prone to attacking the system; control risk assessment must be backed up by control testing results.
Suitable Control Mechanisms
For more efficient and effective audit procedures, they are different control mechanisms that can be applied in order to minimize risk: Mitigation is the
most commonly used mechanism that involves fixing the flaw or in a way providing a set of ways to compensate and control the impact that is
associated therein. The most common is installing system patches at any point a vulnerability has been discovered. Under mitigation, ensuring
compliance can be applied by ensuring compliance with relevant bodies and rules, logical access can be tailor–made so as to clearly target areas with
the most risk and those areas where change can be made and easily implemented. The use of monitoring counters is the hardware–assisted technique
usually that adds the least amount of performance overhead while minimizing the requirement to patch the kernel. It in turn offers a way to

Case Study Of PMPKL
SECTION 1:
PROJECT PLAN
Introduction to the Company:
PMI is the world's leading international tobacco company, with six of the world's top 15 international brands and products sold in more than 180
markets. In addition to the manufacture and sale of cigarettes, PMI is engaged in the development and commercialization of Reduced–Risk Products
("RRPs"). RRP is the term PMI uses to refer to products with the potential to reduce individual risk and population harm in comparison to smoking
cigarettes.
Currently, PMPKL has a tobacco–leaf threshing plant, three cigarette manufacturing factories, and sales offices across the country, and employ 1,482
people. Phillip Morris Pakistan supports a wide range of charitable programs in the communities ... Show more content on Helpwriting.net ...
Auditors conduct interviews with the officials and perform document assessment in order to carry out both primary and secondary objectives. As for
the physical safety of production plant and its employees, firsthand, and on–site experience of the practices that are followed by the company are
scrutinized to ensure a safe working environment. For this purpose, the physical security controls that are practiced in the company are reviewed and
audited. After the assessment, more suggestions are provided to the company which could be used to avoid an unauthorized person from entering the
building, chemicals from exploding, fire from erupting and hence, maintaining a safe internal and external environment.
5.APPROACH:
The aim of the audit at PMI is to have an in depth study of the company and resort to both primary and secondary research methodologies in order to
provide stout results. For this purpose, interviews of the officials are taken into account along with, document inspection, site inspection and
questionnaire. This way the audit focuses primarily on primary research method while targeting random sampling to avoid any bias
Control

The Collapse of Hih В– Solvency and Audit Risk
The Collapse of HIH В– Solvency and Audit Risk
Following the collapse of HIH, considerable debate, comment and speculation have arisen regarding whether and at what point HIH became insolvent.
When a company is close to insolvency, the risk associated with auditing that company is considerably higher than for one that is solvent. This report
investigates methods of determining insolvency, the roles of directors and auditors, and the level of audit risk associated with HIH prior to its collapse.
There is general agreement that the concept of solvency relates to having the capacity to meet debts as they fall due. An insurance company is solvent if
it is able to fulfil its obligations under all contracts at any time (or at least under most ... Show more content on Helpwriting.net ...
Cross guarantees exist where a subset of companies in the corporate group (the "closed group") guarantee the debts of each other. A
regulatory–approved Deed of Cross Guarantee has existed in Australia since 1991. All subsidiaries party to a Deed of Cross Guarantee must make a
solvency statement.
HIH and its subsidiary, FAI insurance had cross guarantees in place. As a result of the cross guarantee, HIH adopted a "group enterprise perspective"
when attesting to its regulatory solvency position. The company treated insurance subsidiaries as if they were part of a singular corporate group and
"netted–off" related company assets and liabilities in several APRA annual returns . This contributed to the fact that the auditors did not identify that
some subsidiaries were potentially insolvent.
The risk that a company is insolvent is a component of audit risk, which should be taken into account by auditors. Audit risk is defined as "the risk that
that the auditor will give an inappropriate audit opinion when the financial report is materially misstated". Auditors risk issuing an unqualified audit
opinion on financial statements that are materially misstated or omit material transactions; therefore the procedures used in the audit must be planned
according to the identified audit risk. The components of audit risk are inherent risk, control risk and detection risk.
Inherent risk is the risk that the financial statements contain a material

Audit Exam Practice Flashcards
ACCT555 – Week 4 Homework
9–22 (Objectives 9–1, 9–2) The following questions deal with materiality. Choose the best response.
a. Which one of the following statements is correct concerning the concept of materiality?
(1) Materiality is determined by reference to guidelines established by the AICPA.
(2) Materiality depends only on the dollar amount of an item relative to other items in the financial statements.
(3) Materiality depends on the nature of an item rather than the dollar amount.
(4) Materiality is a matter of professional judgment.
b. Which of the following is not correct about materiality?
(1) The concept of materiality recognizes that some matters are important for fair presentation of financial statements in ... Show more content on
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(2) increase materiality levels.
(3) decrease substantive testing.
(4) increase inherent risk.
10–30 (Objectives 10–1, 10–2, 10–7) The following are general questions about internal control. Choose the best response.
a. When considering internal control, an auditor must be aware of the concept of reasonable assurance, which recognizes that the
(1) employment of competent personnel provides assurance that management's control objectives will be achieved.
(2) establishment and maintenance of internal control is an important responsibility of management and not of the auditor.
(3) cost of internal control should not exceed the benefits expected to be derived therefrom.
(4) separation of incompatible functions is necessary to ascertain that the internal control is effective.
b. Actions, policies, and procedures that reflect the overall attitude of management, directors and owners of the entity about internal control relate to
which of the following internal control components?
(1) Control environment
(2) Information and communication
(3) Risk assessment
(4) Monitoring
c. Vendor account reconciliations are performed by three clerks in the accounts payable department on Friday of each week. The accounts payable
supervisor reviews the completed reconciliations the following Monday to ensure they have been completed. The

Understanding the Risks Inherent Within a Communicable...
It is very important and imperative in some cases to indentify and understand the risks inherent within a communicable disease. One such disease,
gonorrhea, while often mentioned , is very dangerous and little is actually known about this condition. The purpose of this essay is to describe and
discuss gonorrhea and the efforts to control it and limit its effects on healthy lives and lifestyles. This essay will identify the environmental factors
related to this disease and explain some of the lifestyle choices, socioeconomic conditions and disease management all contribute to this disease. The
essay will conclude with ideas that can help contribute to solving problems related to the current threat of this condition and also discuss reduction
techniques that have worked in the past. According to the Centers for Disease Control and Prevention (CDC) " gonorrhea is a sexually transmitted
disease (STD) caused by a bacterium. Gonorrhea can grow easily in the warm, moist areas of the reproductive tract, including the cervix (opening to
the womb), uterus (womb), and fallopian tubes (egg canals) in women, and in the urethra (urine canal) in women and men. The bacterium can also
grow in the mouth, throat, eyes, and anus." This disease is often referred to as the clap and has been around for a very long time. The most important,
and limiting factor about gonorrhea is that it is transmitted sexually. This serves to relief some but put others in more danger. All sexually active

Questions On Accounting Issues Analysis
To: Chip and Charles Carroway, owner of CCL From: Rose Reddick, CGA Date: April 20th, 20X3 Subject: Accounting issues analysis CCL is a
CCPC and follows ASPE. It is the second year that my firm auditing for CCL. It is CCL's responsibility to correctly record accounting transaction
and preparing financial reports. Manager should be unbiased to fairly present financial reports within GAAP. After careful analysis, I presented
several accounting issues and related analysis as follow. Issue1: Stock option on tax implications Since CCL is a CCPC, there are special tax rules
for the company. The stock option benefits are not taxable at date of purchase, but it is taxable when the shares are disposed. For employee... Show
more content on Helpwriting.net ...
Issue2: Financing option The debate is about whether to choose loan or equity. In terms of the loan option, CCL would be able to claim tax
deductible for the interest payment. However, CCL currently has tight debt covenant. If loan option were chose, debt covenant might be violated and
bank might not allow for the issuing new loan or might cancel the existing loan, or might establish unreasonable loan terms for CCL. Interest payment
might also limit cash flow, which might impact R&D success of CCL, creates going concern issue. Regarding going public, CCL would be able to
obtain a long–lasting and abundance capital resource without any fixed cash outflow happening. Current debt covenant would not be violated
because no additional debts would be added on to the current debt position. However, CCL's ownership would be diluted and control would be
weakened because partial voting common shares of CCL will be given to shareholders. Large amount of expenditure regarding to going public would
occur. In addition, CCL becomes a public company meaning it needs to report financial statement under IFRS, which would bring a lot of
modifications regarding financial reporting and employee trainings because IFRS is more strict than ASPE and current accountant has no associated
IFRS expertise in preparation of financial statement. Moreover, CCL would miss SBD deduction on first $500,000 of Active business income.
Therefore, CCL would

Shopping Networks And The Online Retail Community
Each day ,retailers face emerging risks that threaten the sustainability and profitability of their companies. As shopping becomes more convenient for
the average person ,the increase of online purchases increases in this digital age. Since social media, shopping networks and the readiness of smart
devices enable unsavory individuals to take advantage of unsuspecting shoppers. Given this fact it is essential that retailers rethink how they manage the
risk to their enterprises. With the recent disclosures about the enormous data breaches that occur within the online retail community it is certain that a
strong plan is needed by all companies. For example in 2014,Target, Nieman Marcus, White Lodging, Sally Beauty, Michaels, Affinity Gaming
(casinos), UPS, Home Depot and even New York reported data breaches that involved the theft of credit or debit card information of millions of
consumers ( Hardekopf, 2015). One of the first things that must be considered is the communication process because it is where the breakdown first
begins. Having strong polices that are followed to the letter is the beginning of setting up a risk management framework. This is especially true when
you consider that internal risk is growing as fast as external. There are three categories that risk falls into as far as retail enterprises are concerned:
hazard, business and strategic. Each must be handled in its own unique way for it to be effective within a risk management

The Audit Risk Assessment and Potential Areas of Improvement
The Audit Risks Assessment Model and Potential Areas of Improvement
By:
Patrick S. Fields
Fraud and the Creation of Sarbanes–Oxley
Following the multitude of fraud scandals in the early 2000's, such as Enron and WorldCom, many accounting firms found themselves as part of a
thorough investigation to determine what exactly caused the sudden outburst of accounting fraud. As investors and creditors pursued their lost money
from the these business failures, accounting firms began to garner attention for not fulfilling their due process during the audit to detect the fraud before
it grew to the extent in which it did. In the case of the Enron scandal, it ultimately turned into the indictment and conviction of Arthur Anderson, one of
... Show more content on Helpwriting.net ...
Current economic conditions and other internal factors may raise the inherent risks for a particular account. Some transactions that are routine,
noncomplex, and systematically processed may have lower inherent risks, while other routine transactions, such as cash transactions, are more
susceptible to fraud and, therefore, have greater inherent risk (Clark 2009). Detection risk is the risk that substantive procedures may be ineffective in
detecting errors. As your risk of material misstatement increases, an auditor must prepare an audit plan with more effective substantive procedure. By
multiplying these risks together you arrive at the audit risk; defined by SAS 107, "Audit Risk and Materiality in Conducting an Audit," as the positive
opinion of an auditor of financial statements that are materially misstated and unknowingly failed to be appropriately modified. As stated earlier, audit
risks can never be fully eliminated. Normally, the formula is used to solve for detection risk after establishing an acceptable audit risk (usually 5–10%)
based on factors surrounding the company, industry, and background of the client. The determination of detection risks ultimately plays a major role in
planning the audit and establishing a materiality threshold. The audit opinion is directly influenced by the amount and type of audit evidence

Chapter 3 Risk Assessment and Materiality Answers to...
CHAPTER 3 RISK ASSESSMENT AND MATERIALITY
Answers to Review Questions
3–1Audit risk is the risk that the auditor may unknowingly fail to appropriately modify the opinion on a set of financial statements that are materially
misstated. Engagement risk is the exposure to loss or injury to professional practice from litigation, adverse publicity, or other events arising in
connection with financial statements audited and reported on. In simple terms, audit risk is the risk that an auditor will issue an unqualified opinion on
materially misstated financial statements, while engagement risk relates to the auditor's exposure to financial loss and damage to his or her
professional reputation.
3–2Inherent risk and control risk differ from ... Show more content on Helpwriting.net ...
In other words, firms would prefer to have their auditors establish similar materiality judgments for clients with similar circumstances.
3–9The three major steps in applying materiality are:
Step 1: Determine a materiality level for the overall financial statements. The auditor should establish a materiality level for the financial statements
taken as a whole. This will be referred to as planning materiality. Planning materiality is the maximum amount by which the auditor believes the
financial statements could be misstated and still not affect the decisions of users. Materiality, however, is a relative, not an absolute, concept.
Step 2: Determine tolerable misstatement. This step involves determining tolerable misstatement based on planning materiality. Tolerable misstatement
is the amount of planning materiality that is allocated to the account balances or classes of transactions so that the auditor can plan the scope of audit
procedures for the individual account balance or class of transactions.
Step 3: Evaluate audit findings. Based on the results of the audit procedures conducted, the auditor aggregates misstatements from each account or class
of transactions. The aggregate amount includes known and likely misstatements. In evaluating likely misstatements, the auditor should be very careful
in considering the risk of material misstatement in accounts that are subject to

Hih Insurance Limited Essay examples
Case One – Solutions
HIH Insurance Limited:
Inherent Risk Assessment, Legal Liability, Ethics and Audit Reports
The case can be used either progressively through the course using questions relating to chapters as they are taught or as a consolidating case at the
end of the course. Where possible, students should be encouraged to concurrently research information in the press relating to HIH while they
undertake the case. Clearly, the points for discussion may change as further information becomes available. As the legal proceedings in the case are
still in progress, the suggested discussion points are not intended in any way to comment on or compromise any investigation. All information provided
in the case is available in the public ... Show more content on Helpwriting.net ...
There is no formal structure for the maintenance of Prudential Margins although many companies hold a buffer or prudential margin with an 80–90 per
cent chance of covering claims (Four Corners report). Many of the transactions in the insurance industry are complex and require high levels of
judgment.
HIH's position within the industry
HIH was a global insurance company. Price competition was particularly hard on HIH as a substantial portion of their insurance was in workers'
compensation. HIH moved into the workers' compensation market in California, which was very competitive and high risk, which led to a financial
disaster and losses of $200 m. HIH moved into professional indemnity and public liability insurance. Other high–risk competitive markets entered
included Marine and Aviation and natural disasters as well an unbelievable entry in the area of Film Finance. In this area HIH insured films
guaranteeing the film in the event of a loss. Some of these films were never even made. One loss prior to the collapse was for $100 m. HIH
reportedly had little experience in the film industry and the film industry had a reputation for losing money.
Mr Charles Pratten (Chairman of Rural and General Insurance) held discussions about HIH with the Insurance and Superannuation Commission as
early as 1997. APRA is being heavily criticised for failing to take any action. The Australian Institute of Actuaries and Ernst and Young independently
published papers

The Organization's Money Related Position And Execution
Auditing Environment
Introduction
Organizations produce financial statements that give data about their money related position and execution. This data is utilized by an extensive
variety of partners (e.g., financial specialists) in settling on financial choices. Regularly, those that possess an organization, the shareholders, are not
those that oversee it. In this way, the proprietors of these organizations (and different partners, for example, banks, suppliers, and clients) take solace
from the autonomous affirmation that the monetary explanations genuinely present, in every single material regard, the organization 's money related
position and execution.
For improving the level of trust in the financial statements, a qualified outside gathering (an auditor) is locked in to inspect the money–related
comments. Including relevant exposures created by the administration, to give their expert conclusion on whether they reasonably reflect, in every
single material admiration, the organization 's money related execution over a period (a pay proclamation) and budgetary position starting a particular
date (a financial record) as per pertinent GAAP. As a rule, this is required by law.
The changing economic and legal environment has noteworthy ramifications for an organization 's operations and money related reporting, and
changes in the business, economy and laws, and directions, for the most part, build the level of dangers influencing the business and require sufficient
reaction

A Study on Systematic Risk
Part I: Systematic risk is any risk that is inherent to the entire market (Investopedia, 2012), and as such this form of risk is also known as market risk.
This is the risk that is inherent in the market rate of return and in the risk–free rate of return in the capital asset pricing model. Systematic risk contrasts
with firm–specific risk. In CAPM, the firm–specific risk is represented by the beta. This is any risk that relates only to the firm. Such a risk might
relate to multiple firms, but would still be considered firm–specific risk unless is applies to the entire market. In general, systematic risk is
undiversifiable because it affects all firms, so no amount of diversification is going to eliminate this risk. Firm–specific risk is diversifiable because this
risk can be eliminated with a well–diversified portfolio.
A sudden, unexpected increase in the inflation rate is considered to be systematic risk. All firms are affected by the inflation rate, so this risk is not
easy to diversify away. An increase in the inflation rate affects different firms in different ways, but risk is understood as volatility, so the point is that
an increase in inflation will affect all firms in some way, and that makes it undiversifiable or systemic risk.
A major recession in the US is also considered to be undiversifiable risk. Again, while a recession affects different companies in different ways, it will
affect all companies. Therefore, this is considered to be undiversifiable risk,

What Is Pluto Ltd Is Likely To Be At Inherent Risk?
Question 1 (a)First and foremost, Tech Ltd seems at inherent risk due to a possibility of misstatement resulting from misappropriation of assets and
fraudulent financial reporting. As an individual store which unauthorized raises the inventory requisition, it is not uncommon for the owners to use the
store assets for personal use and manipulate or counterfeit the records or documents. Besides, Mr. Abbot believed that introducing of garment labels
will increase sales revenues, but never understand the business model and conduct assess, it is easily lead to risks of material misstatement. Worse
still, the company could be exposed to control risk resulted from the internal control. The company excessive reliance on computer systems can easily
lead to internal control issues. If a poorly controlled company, it stands a chance to... Show more content on Helpwriting.net ...
The highly competitive competitor's products affect the demand of Pluto Ltd that is expected to fall. Thus, the company may lose a major market. If
the situation continued to decline, Pluto's sales revenues would be dropped but operating expenses would be kept to increase. In addition, it may
encounter cash flow problem that would lead to going concern problem. Furthermore, if Pluto's demand was even worse, it may cause the inventory's
fair value will be lower than their original cost. When Pluto's financial performance get worse, the management may possibly have the motivation to
manipulate or falsify the data or documents. (b)The key accounts of sales, accounts receivables, cost of goods sold and operating expenses, inventory
and accounts payable which are likely to be manipulated by management to achieve a higher profit in the audit plan. Question 2 (c)The inherent risk is
high due to the new competitive competitor who causes demand drop and lead to going concern

Rhetorical Analysis Of Salynda E. Fleury's Law
Rhetoric is a powerful tool in which can be used to influence an audience through words. How the speaker presents his or her argument ultimately
depends on the rhetorical tools used. Here, the Supreme Court presents an interesting observation on the accounts of the Fleury case in which the
plaintiff Salynda E. Fleury argues avalanches are not an inherent danger and risk of skiing. The following is a great example of how the supreme court
attempts to persuade the audience though specific elements that drives the brief forward. The defendant's answering brief attempts to analyze the plain
language of the Ski Safety Act and its sections, most notably section 33–44–103(3.5) "inherent dangers and risks of skiing", arguing that avalanches are
... Show more content on Helpwriting.net ...
Second, the audience can already tell which argument the speaker is going to make: avalanches are an inherent risk and danger of skiing. This helps
benefit the brief because it quickly tells readers what to expect from the brief as well as where the speaker stands on the issue of avalanches either
being or not being an inherent risk or danger of skiing. The introduction ends with the author arguing that
The author uses the rhetorical tool Pathos to help drive the argument. This is seen when describing the unpredictability of avalanches. The speaker
notes, " Due to this unpredictability ( of avalanches occurring), trained professional ski patrollers are killed and/or seriously injured every year trying
to minimize avalanche danger and make the slopes safer for the public (7). Using a pathetic approach, the speaker invokes the audience's emotion to
approve or agree to the argument presented, using the tragedies of ski patrollers in doing so.
Another effective technique the author uses is referencing examples of inherent dangers in regard to avalanches. The author references three cases in
which avalanches occurred on ski areas to show how avalanches themselves are unpreventable from occurring. This helps benefit the argument since it
emphasizes the reality of ski patrollers being helpless when avalanches occur and therefore something that is unavoidable.
Some concerns regarding the brief have to do with

Data Analysis Project Example
For the two hypothesis that this paper would research, abundant of data need to be collected to support and test. FAME is a helpful database that helps
to provide company data information and variable analysis, it has provided information of 250 companies that come from 250–FTSE registered firms.
In addition, the annual report of research companies also helps to provide essential data and information. This article uses the screening and
identification tools and chosen 165 firms' data and internal control information from the financial year of 2007 to 2015, which include one dependent
variable, which is audit fees and two main independent variables, including the percentage of non–executive director and total amount of remuneration
of board ... Show more content on Helpwriting.net ...
External audit plays a significant part in the assessment of the performance in a firm, Hye et al (2015) had used the audit fees to represent the audit risk
of the company, which would be a useful indicator on audit quality. The audit fees for these 165 firms could be collected from FAME directly. Due to
the reason that the amount of total audit fees in a company are extremely huge, this research would use the natural logarithm of total audit fees, which
would be more convenient to calculate and to compare with other companies and variables. In addition, a plenty of literatures, such as Zaman et al
(2011) and Boo and Sharma (2008) also use natural logarithm to calculate the total audit fees.
3.2 Independent variables:
3.2.1 Proportion of non–executive director (NED):
Non–executive directors are independent of management in a firm, they play an important role in the supervision works. They need to obtain the
independent information about the management and control of the directors in the company, thus they would require the external auditors to provide
the financial information they needed. Peel and Clatworthy (2011) also use the EDBS (ratio of non–executive directors to total directors) as
independent variable. The proportion of non–executive director for these 165 firms could be calculated by the number of non–executive directors
divided by the total number of directors. Moreover, both of

Business Risks And Inherent Risks
Business Risks and Inherent Risks
Starbucks' success depends significantly on the value of their brands and failure to preserve their value, either through their actions or those of their
business partners, could have a negative impact on their financial results. Brand value is based in part on consumer perceptions on a variety of
subjective qualities. Business incidents, whether one–time or recurring and whether originating from Starbucks or their business partners, that weaken
consumer trust, such as actual or perceived breaches of privacy, contaminated food, recalls or other potential incidents discussed in this risk factors
section, particularly if the incidents receive considerable publicity, including rapidly through social or digital media, or result in litigation, can
significantly reduce brand value and have a negative impact on their financial results.
The unauthorized access, theft or destruction of customer or employee personal, financial or other data or of Starbucks proprietary or confidential
information that is stored in their information systems could impact their reputation and brand and expose them to potential liability and loss of
revenues. Information technology systems, such as those they use for their point–of–sale, web and mobile platforms, including online and mobile
payment systems and rewards programs, and for administrative functions, as well as the information technology systems of their third party business
partners and service providers, can

Just for Feet
Case Study of
Just For Feet Inc.
Xuan Zhang
Q1. Prepare common–sized balance sheets and income statements and compute key ratios for 1997–1998. What were the high–risk financial statement
items for the 1998 audit? * Common–sized financial statements:
* Key ratio analysis: Liquidity and solvency:| 1999| 1998| 1997| Current ratio| 3.387 | 1.998 | 2.142 | Debt to equity| 1.117 | 0.672 | 0.720 | Times
interest earned| 6.376 | 24.665 | 28.286 | Activity| | | | AR turnover| 44.641 | 42.749 | 39.127 | Inventory turnover| 1.493 | 1.649 | 1.107 | Profitability
ratios| | | | Operating margin| 6.61%| 7.17%| 8.12%| Net margin| 3.44%| 4.47%| 5.43%| Return on assets| 3.87% ... Show more content on Helpwriting.net
...
In this situation, audit planning should have certain procedures to test the opportunities whether management can commit fraud, such as inquiries of
management and employers to establish an overall understanding of the client's strategies and business, industry and economic environment and
competitors' situations.
Also another risk factor that will increase the company's inherent audit risk is the situation of its cash flow. If a retail company has a negative cash flow
which means it not generating enough cash to maintain its operations, the risk of misstatement will accordingly increase. As stated in Q1, auditors
should spend more efforts on examine the cash accounts if the cash flow of the company shows some abnormal signals.
Q4. Identify the audit risk factors present for the 1998 audit. Rank 5 factors that were the most critical to the successful completion of that audit. Did
Deloitte auditors responded appropriately to these factors? * Management pressure under highly competitive business environment. * Large inventory
size (more than half of total assets) and low inventory turnover(less than half of the industry average). * Unusual financial reporting "treatments" such
as vendor allowances and income control. * Continuing negative cash flow. * Drastic increase in overall debt during the past three years. *
Decentralized business. * Low return on assets and equity.
The audit risk factors

Essay about canadian tire audit report
Client risk profile
Canadian Tire Corporation, Limited (CTC) is primarily a canadian retailer, focusing on automotive and general merchandise. Founded in 1922, the
company has been around for almost a century, building strong brand recognition in Canada. Initially starting as a car parts retailer they have expanded
rapidly into other areas, mainly general merchandise retail. They have other secondary divisions being; Partsource Automotive stores (strictly
automotive parts), Financial Services, Mark's Work Wearhouse (clothing retailer), FGL Sports Ltd. (various sporting good retail chains), and Canadian
Tire Petroleum (gas stations and car washing). The main users of CTC's financial statements have been identified as the debt ... Show more content on
Helpwriting.net ...
This system causes many inefficiencies, both financial and non–financial, for CTR in comparison to its competitors (EXHIBIT CIBC REPORT).
However, the dealer–corporation model is as old as Canadian Tire itself and extremely unlikely to change. Essentially the dealer is responsible for
everything in–store, and the corporation takes care of the rest. A list of segregated responsibilities can be seen in Exhibit Z.
Going Concern Canadian Tire Corporation is in good financial standing and extremely unlikely to bankrupt in coming years. Currently CTC's debt
to equity ratio is 0.242 below the industry average of 1.557, with a current ratio 0.614 above the industry average of 1.061. Addressing the debt to
equity shortfall, CTC has decreased its debt to equity from 1.897 to 1.739 between third quarters of 2012 and 2010. This is including the acquisition
of FGL Sports Ltd. which spiked debt in 2011. (CITE ANALYTICAL PROCEDURES) There is no issue of going concern.
Technology IT is centrally–managed for each of CTC's specific divisions. Retail stores use software to keep track of inventory and prices regarding
items in stores. The stores then transmit this information to make purchases from CTC. It is an integral part of their supply chain and retail operations.
They are continuing to upgrade these internally developed systems, which could pose a risk for exceptions. These systems will require increased test of
controls

Tiffany Case
The audit risk is generally evaluated based on accounting firm policy and professional judgment. Our firm requires us to assess low audit risk,
which is to be 0.05, for the audit client that generally has stable financial condition and achieve steady financial performance. Tiffany is profitable
company and has strong financial position: the net income in 2012 and 2011 are $416M and $439M respectively, Net assets in 2012 and 2011 are
$2,611M and $2,349M respectively. In addition, the market share of the company in jewelry industry ranks No.1 in US and No. 2 in the world. They
could keep their position continuously due to brand power and valuable employees. Therefore, we determined our overall audit risk to be 0.05.
Risk Material ... Show more content on Helpwriting.net ...
In addition, due to the nature of jewelry, they are generally small and consist of a large number of items. This means that it is very difficult for the
company to custody, control, and manage its inventory. Based on our evaluation above mentioned, we assessed the inherent risk of the inventory to
be very high, which is 0.90. We also interviewed with management, inventory manager, and staffs and went through a number of documents which
is related to inventory account, such as control manual and work instructions, to obtain basis to evaluate control risk of the inventory. As a result of
our work, we realized that the company has reasonably sound internal controls of the inventory to obviate management fraud and diminish business
risks. However, we found out there was a big embezzlement, which is related to inventory account. A former vice president of product development
at Tiffany was accused of stealing $1.3 million worth of jewelry between January 2011 and February 2013. It implies that their internal control of
the inventory has some weakness parts and need to be improved to prevent similar accidents. However, except for above one, we did not find any
significant fraud or accident in the company that could increase a major risk of the company. Under our analysis, we evaluated evaluated the control
risk to be slightly high (below the maximum), which is 0.60. Therefore, the RMM of the inventory for Tiffany equals 0.54 (IR x CR, which is
0.90*0.60).

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