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Planning an Audit Engagement Background \& Purpose: To properly plan and perform an engagement, the auditor must obtain an understanding of the client's business and environment. This understanding is central to the auditor's ability to identify and assess inherent risk (I/R) and fraud (primarily FFR) risk and to plan effective respemses to these risks. In addition to the client's historical financial statements, auditors use a diverse set of resources to guide engagement planning including, but not limited to: Managemen's Discussion and Analysis (MD\&A), analysts' EPS' forecasts, analysts' company and indusiry reports, company websites, proxy sulements, press reteases, news about the company, industry and economic data, and information regarding the regulatory enironmen (if applicabie). You will be plunning the audit engagement for the companv chosen by vour team for the upcoming year end. You will: obtain a comprehensive understanding of vour client [Requirement I] and make wellinformed inherent and fraud (primarily FFR) risk assessments at the overall financial statement, account, and assertion levels [Requirement 2]. Report Content: [1] Your understanding of the company \& environment: (You may use AI to supplement your research for this part of the project) Describe the company: Its business model, imporiant corporate iniliaines and strategies, fiture goals, significant acconning policies. Graph or tabulate the company's financial performance to date: Revenues, eamings, EPS, and other key performance indicators for ihe prior 3 years and most recent auarers. Describe the company's industry: Trends in industry performance, performance of main competitors, sensitivity of the indusiry to economic factors. Other factors important for risk assessment: Management's incentives \& pressures and opportunities for FFR, important news events. [2] Your identification of risk factors and assessments of LR \& fraud (primarily FFR) Risk: (AI is not to be used on this part of the project) (a) Discuss the risks at the overall F/S level (from understanding the company is envominent). (b) Discuss the risks at the account level (for four (4) significan accounis from the Balance. Sheet - consider the nature of the accounts and accounting policies when making these assessments)