try to plan an audit of a real, public company called GAME STOP.

Discuss the general nature of the business done by the company, including how it earns revenues, what are major costs, where it operates, who it competes with, whether it is highly regulated, etc. This is a place to use your knowledge of other business, marketing, and economic concepts.

Discuss what you see as the three most important business risks for this company. These might include such things as the threat of substitutes for its products, or competition from bigger companies, or changes in government regulation, or impacts of proposed new laws, or changes in consumer tastes, or the fact that it is highly leveraged, or that its customers are concentrated in one area, or that its management is old and there are no successors in sight.. Please be specific if you think competition is likely to be a problem, say who is likely to be the competition.

Discuss what you see as the three most important audit risks for the company? Audit risk areas might be the same and business risk areas, but audit risk is the risk that the financial statements will be wrong, and that the auditor wont catch the misstatements. I am looking for you to think about accounts and/or disclosures that are most likely to be misstated, and to tell me why they might be misstated.

Discuss at least one audit procedure you would want to employ to mitigate each of the audit risks you mentioned above. (For example, if you thought there was a significant audit risk that the client would estimate its bad debt reserve wrong, what steps would you take as an auditor to try to catch this error?)