This case analysis relates to the case study, named Sheridan AV (Links to an external site.), which is featured in Audit simulation (Links to an external site.). The details of the case study cover key aspects of a financial report audit.

For the purposes of this assignment, you are a senior auditor at Alex Gold Financial Services, an accounting firm. You have been assigned to the audit of Sheridan AV Ltd for the year ended 31 March 2021. The Managing Director of Sheridan AV, David Sheridan, is considering having Sheridan listed on the stock exchange and the Audit Partner, Billy Bromus, has suggested an audit in advance of this application. You have visited Sheridan to carry out some work relating to planning the audit.

Your risk assessment report should include a table of content, an introduction, main body and conclusion and has about 2,000 words.

For each risk:

• Identify the risk
• Describe the factors that led you to identify the risk
• Explain why you feel it is a key risk
• Describe what testing you would plan to do to address the risk

Billy Bromus (the Audit Partner) and Graeme Moore (the Audit Manager) would like your team to prepare the Risk Assessment Report for Sheridan AV. Working as a team prioritise the identified risks, you have selected two inherent risks and two control risks that you feel are key to the audit. Your risk assessment report should include a table of content, an introduction, main body and conclusion and has about 2,000 words. For each risk: Identify the risk Describe the factors that led you to identify the risk Explain why you feel it is a key risk Describe what testing you would plan to do to address the risk.