Question
Hi! Kindly help me with answering these questions on Alphabet Inc. This an accounting/Auditing related assignment Obtain outside information about the company and its industry.
Hi! Kindly help me with answering these questions on Alphabet Inc. This an accounting/Auditing related assignment
Obtain outside information about the company and its industry. Answer the following questions:
What are the key economic factors about the industry?
Where is the company in its life cycle?
What are the five or six most important factors for success in this business?
How does this company stand with respect to these factors?
Describe four or five key business risks related to the client's business and industry.
What notable accounting considerations are there for companies in this industry?
What legal or regulatory matters are of concern?
What social matters are of concern?
Analyze the company's financial strength:
Assess the financial strength of the company.
How is the financial strength likely to change in the next year or so?
What are its sources of capital and what is the value of the company's capital?
How have capital markets responded to the company in the last year?
What is the quality of earnings?
How does the company compare with others in the industry?
Prepare a broad audit plan:
What material types of transactions and transaction cycles are involved?
What are the high-risk areas?
What are the low-risk areas?
If management faced tremendous pressure regarding the entity's financial performance, what opportunities might exist for them to engage in fraudulent financial reporting?
To what extent do you believe it will be appropriate to reduce assessed control risk?
How will the audit effort be allocated among geographical areas?
Will any areas of the audit require outside expertise?
Will there be reliance on an internal auditor(s)? If so, why? If not, why not?
What form of auditor's report do you expect will be issued? What does it mean?
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