Risk is a key theme that permeates through the entire audit process from the selection of the client to the planning and execution of the audit.You will need to build on the knowledge of the client that you have gained from earlier assessments to form an overall opinion of the level of Inherent risk in your chosen company. This needs to be done by applying the key auditing standards on risk to your chosen company by completing a template of questions which can be found on Blackboard.

This assessment is all about judgement and application of the auditing standards.As such, a key requirement of this assessment is your ability to draw in relevant sections of certain auditing standards and reference certain sections.However, it is about more than simply quoting standards.It is about using the knowledge in those standards to apply them to your chosen company.That is, it is about applying your judgment! As such, every student's assessment will differ according to the issues that apply to their company.

At the end of this document, you will find some detailed notes on the marking rubric and helpful hints on how to complete each section of the template.In addition, you will go through aspects of this assessment using your tutorial class company as an example and using the same template. Therefore, it is imperative that you attend the tutorials and practice doing the assessment using your tutorial allocated company as a guide.

For two (2) students that submit this assessment early, there will be feedback provided.That is, there will be a reward for these students that submit early as they will be given an opportunity to amend their assessment before the due date and correct any errors identified.This will also be available for additional guidance to all students to assist them.

HOW TO SUBMIT ASSESSMENT 2B?

Once you download the template, complete the end column with detailsabout your chosen company.

Do NOT attach the file as an attachment.Instead, Copy and paste your completed template the Discussion Board thread titled Assessment 2B, using your company name as the subject line.Do NOT attach the file as an attachment.

There is no need to change any formatting, just fill-in the requested information

Please ensure that you reference page numbers of where you have found the information in your annual report in the template.It is also important that you reference the Auditing standard paragraphs that you are drawing your information from.

There is no need to add your name anywhere because you will insert the completed template to your Discussion Forum and your name will appear automatically there.

Ensure you save a copy for your records

Also remember that the Discussion Forum for this assessment will not be available after the due date so you MUST get this assessment in on time!!!!

ASSESSMENT 2B TEMPLATE

CRITERIA

DISCUSSION IN RELATION TO YOUR COMPANY

RISK RATING (HIGH, MEDIUM OR LOW)

Your company's name

Insert the url (link) to the company annual report site/location

General referencing quality

General level of critical thinking/application

The following section describes different factors used to assess inherent risk before considering any internal controls.Apply these factors to your chosen company.

Describe the impact of the nature of the company's business on IR

Describe the impact of the results of previous audits on IR

Describe the impact of initial vs repeat audits on IR

Describe the impact of estimates and judgement required for accounts on IR

Describe the impact of non-routine transactions on IR

Describe the potential for fraud on IR

List and describe any other factors from the annual report that you think are relevant for assessing IR

Conclusion:What is your overall IR level assessed and why?

I have chosen SEEK limited as my company. Here is the link to the company's annual report.