Scenario 3

Jupiter Mining Ore Limited is a major mining and exploration firm with operations in multiple galaxies. The company is looking to further expand its operations those solely within its core operations. The companys total assets exceed $100 billion, liabilities of $45 billion, and annual sales close to $200 billion. The preferred auditor is Bad Eyesight Auditors.

Required: Consider the following scenarios independently to determine the type of risk, level of risk, and extent of audit work that may be necessary:

Due to changes in mining regulations and rules governing accounting for mining operations, Jupiter Mining Ore Limited had to significantly change the role and responsibilities of its internal audit teams, and internal audit processes during last year with some issues still unresolved.

• Type of Risk

• Level of Risk

• Expected Level of Audit Work

• Justification