Suppose the Walmart company is awaiting the arrival of goods or inventory from a shipping company. Unfortunately, the shipping company with ships caught in the mess and in particular, the one that dropped the unfortunate anchor. In this case,

1. From the two auditors perspective (auditor of Walmart company and auditor of shipping company), identify inherent risks of material misstatement arising from this event in the financial statements of the company and in the financial statements of the shipping company.

2. Develop a strategy for each auditor to address those risks.

3. Consider the Accounting, Inherent Risk, and ESG/sustainability implications.

4. Identify what are the business risks to the CEO and bring that down to the financial statement. How does the risk influence the financial statements and the audit? Give your suggestions on how they can control the risk?