Audit firms today are facing a unique set of challenges. The addition of policies such as environmental, social, and

governance $($ESG$)$ has created new areas of interest for stakeholders and investors, the shrinking talent pool has firms

looking to improve workflow by automating processes, and an increasing focus on compliance measures is affecting

both auditors and clients alike. Not only do audit firms have to navigate these concerns internally; they also must

address them in their client work. Amidst these challenges, one constant remains for auditors: the importance of

identifying risk.

$2024$ and beyond therefore, the audit profession requires renewed commitment to address the issues, including

through innovation.

Required:

a$)$ Explain the audit risk model and discuss each element, providing examples of assurance services.

$(10$ marks$)$

b$)$ Based on the statement above, critically evaluate the challenges encountered by external auditors in FIVE $(5)$

areas that require changes and how audit firms are innovating to address the challenges.

$(50$ marks$)$

c$)$ A recent string of high$-$profile audit delays has highlighted how staffing issues, remote work and economic

volatility are impacting auditors$$ ability to deliver for clients in a timely fashion, industry experts have argued.

This reaction comes after the fashion retailer Superdry suspended trading in its shares in August $2023$ having

missed its accounts publication date, stating that normal procedures were taking longer than usual.

The Gloucestershire$-$headquartered firm is not alone in its auditing struggles.

In $2022,$ rail and bus operator Go$-$Ahead suspended shares trading after it was reported that the business was

locked in negotiations with Deloitte on how to treat unreported taxpayer funding. Similarly, in $2020,$ the ad

agency M&C Saatchi were having audit delays.

Critically discuss the problems and issues regarding the cases above and suggest ways, if any, in which they could

have been mitigated. $(15$ marks$)$

d$)$ Reflection report on the research for Part $($c$)$ above. $(10$ marks$)$

Other Specific Instructions for this Assignment

e$)$ Presentation and Structure:

Follows logical structure with good flow of the report; meets the format requirements outlined in the

instructions, articulate and fluent academic writing. $(5$ marks$)$

f$)$ Harvard Reference is to be used for the assignment. Use a minimum of $8$ sources; in$-$text citations done properly

and use Harvard referencing style. $,$ provide references link as well$(10$ marks$)....$ subject $-$ auditing