Myer Holdings Limited 2020 annual report is provided in a separate file. Based on the 2020 Annual Report for Myer Holdings Limited, prepare a planning memorandum for the audit partner which includes the following: 

Required:

1. Identify four major business risks of Myer Holdings Limited and provide a detailed explanation of why each factor is identified as a risk to the business.

2. Results of analytical procedures. It is recommended that you prepare a trend analysis, vertical analysis, and prepare key ratios (Examples of analytical procedure analysis are available on Moodle). Identify and explain which changes in the trend analysis, vertical analysis, and ratio analysis would trigger further investigation in the audit for Myer (Please include your workings in the Appendix).

3. Identify four inherent risks that you identify from business risk and analytical procedures in points 1 and 2. (Note: Business risks are not the same as inherent risks). 

4. Identify a key account and a key related auditor assertion at risk of material misstatement based on the inherent risk you identify in point 3. (Note: Identify a key account and a key assertion for each of the four inherent risks identified in point 3).

5. Calculate planning materially in a dollar ($) amount. You must include a breakdown of your calculation and a justification of your choice of base, the percentage used and your assessment of detection risk. Assume the company’s control risk is high.

6. Determine a number of methods the company can implement to overcome the high control risk. Assume the company’s control risk is high.