The group project is a hands-on exercise in planning a financial statement audit. The project will give you an opportunity to consider how the concepts and techniques discussed in the course apply in auditing an actual business.

Your team will take on the role of the audit engagement team for a publicly-traded Canadian company. Assume that your audit firm has already conducted its client retention procedures (this is not the first year that you are auditors), independence analysis, and has determined that the members of your team are the best people for the job. Now that has been done, your team is required to develop the client risk profile and plan the audit of the client company (with a focus on the revenue cycle) for its upcoming year-end.

Your team is expected to provide two deliverables (more details on each part are provided below):

Part 1 Client Risk Profile - Assess Client Business Risk Materiality

You are expected to use the companys most recent quarterly results, the most recent annual report, and other publicly-available information. State any assumptions you find it necessary to make. You should not contact the organization or interview people for this project. You should not contact the actual auditors as they will need to keep all the client information confidential. Please feel free to ask the instructor for further guidance if any of the requirements are not clear.

Part 1 - Client Risk Profile - Assess Client Business Risk (limit of 3 to 4 pages (single space), including appendices)

The aim of this part of your assignment is to prepare a detailed industry and business risk analysis for the company you have been assigned:

____________________

In preparing the analysis, be sure to include the following:

• Business strategies
• Key competitors
• Industry Trends
• Key Business Processes
• Financial Resources and Availability
• Major Risks

In your analysis, you need to make a conclusion on the companys risk.

You are expected to perform a thorough search, using a variety of electronic sources such as:

• The companys annual report (ensure you look at managements discussion and analysis along with the financial statements)
• The companys website
• Stock broker or investment analyses
• Business press
• Professional Journals (such as CPA Magazine)
• CPA Handbook - Assurance and Accounting Standards
• CPA Risk Alerts

* Note: You may find that the industry guides prepared by many of the Big Four Firms (PWC, Deloitte, KPMG and E&Y) to be useful for your industry.

Remember to prepare a bibliography and use proper citation