Week 3 Case Presentation

Auditors are required to obtain and support an understanding of the client and its environment in order to identify business risks. Much of the information needed to identify the risks can be obtained from the companys annual report, 10K, and proxy materials. Additionally, industry information on these companies can be obtained from Web sites such as Google.

1. Select a public company and provide a general overview of the company and its industry. Consider the following:
   1. The nature of the entity
   2. Industry, regulatory and external factors
   3. Objectives and strategies
   4. Entity performance measures
   5. Management
   6. Governance
2. Complete the following table identifying what you believe are the companys business risks. Also, consider industry averages and competitors.

Business Risk	Audit Area Affected	Assertion	Auditor Response
Dependence on key products	Revenue	Valuation	Consider the effect of lost revenue on entity profitability